It's a Seller's Market, why isn't my home selling?
This is the most asked question I've received when homeowners reach out after taking their home off the market. A common question with a few different solutions.
1. Condition & Competition
How does the condition of your home fare with those you're competing against?
One of the first tasks a Realtor® has is to determine the state of your home as it relates to others. They should convey that to you, the homeowner, upon meeting with them. Buyers spend most of their time viewing many homes at once with their agent, cross comparing your home with four or five others. If one home shows better than others, it is more prone to receive an offer.
Consider interviewing a Realtor® before you perform upgrades and long before you decide to sell. The worst disservice you can do as a homeowner, is overspend on a project that doesn't provide the best return on your investment. You're hiring an agent to represent your best interests, long before the "For Sale" sign is placed in your yard/window. Let the professional help you make the right decisions - they see what's moving in the marketplace, day in and day out.
Here's where the great agents separate themselves from everyone else. Marketing is a craft and one that conveys the property in its best condition to potential buyers. It doesn't matter whether your property is worth one hundred thousand or one million dollars, professional marketing services should always be a package included when selecting agents.
Just remember, no one single piece of marketing is going to sell your home! Today's newest form of marketing, drone photography and video, possesses neat features to convey the home, but not one to lean on specifically. Photography, video and dynamic layouts are great for buyers to sink their teeth into online because over 90% of them find it online first. If your online presence is secondary to others, you've already lost momentum.
Consider these two photos, for example.
The top is a simple iPhone photo.
The bottom is professionally shot, of the same space.
Which would you prefer?
Does your agent promote your property to other agents, local association meetings, businesses and on a social platform aside from normal housing websites? A Realtor® is your advocate when you hire them to sell your property. Ask about what they do to ensure the most eyes are fixed onto your home. It's much more than a sign in your yard!
All things equal - marketing, conditions, comparisons - the reason why your home hasn't sold in the marketplace, is due to the price. The best looking homes, cutting edge marketing plans, and most proficient agents sometimes can't fight the elephant in the room.
The vast majority of sellers think a high price is open to negotiate down because that's how it's worked in the past & they don't want to give away the home. Today's buyer is more educated about the marketplace as a whole due to the amount of accessible information available & guidance of an experienced Realtor® (Buyer's Agent) help determine if a home is of value or not.
An overpriced home gets passed on until it reaches the market price. Even dropping the price long after listing tends to sell for less than what it should've, had it been properly positioned from the get-go. Consider the figure below at over market price. Less demand from Buyers and ultimately leading to price reductions until it achieves market price.
Properly positioning the price at market value or just below is key. The market will correct itself. When buyers, who've been looking in your area, know the values, they'll offer on a home that is properly positioned. When more than one buyer sees the same value, multiple offers are received and it drives the price up to what the home should've sold for or higher. Ultimately, netting more money for the seller than if they started above the market price. See below.
The first 2-3 weeks are a tell all story on what the market says about your home.
Little to no showings - No Offers - Over Market Price
Multiple showings - No Offers - Close to Market Price & consider condition as it relates to other comparable homes.
Many showings - Multiple Offers - due to limited amount of homes to purchase which will drive up your value.
When all things are equal, consider your price and remember that a home is worth what a buyer is willing to pay for it!
When interviewing agents....
Interviewing agents is key when it comes to a pricing & marketing strategy. Know who you're working with and double down on why you think they came up with that price. Some agents will meet with you and tell you everything you want to hear, knowing that a high price is one that won't sell. Eager for the business but probably not your best choice. We refer to that in the industry as "buying the listing"; a disservice to you.
You'll also find agents who'll cut their commission to obtain your business - referred to as "discount brokers," even more of a disservice to you. Logically, the agent getting paid their full fee is going to work harder to ensure you net the most money, save the most time and position you perfectly into your next home.
Commission is a topic that should be discussed last, or hardly at all. It's the cost to effectively do business. Your agent should convey their knowledge, marketing & pricing strategies with you in such an effective manner that justifies every penny they're worth. At the end of the day, they're negotiating on your behalf, marketing at their cost and spending valuable time that doesn't get accepted until the closing table.
To discuss your value & my marketing strategy focused on selling, please reach out here.