Why Homes Do Not Sell

Everyone knows that home values have taken a major hit over the past few years.  Homeowners are faced with the fact that over 50% of the homes that sold in California in 2009 were either bank owned or short sales.  That means that homeowners who wish to sell their home must compete with homes in the distressed segment of the market.  That is not a great place to start.

Let’s take a closer look at the housing market over the past few years.  We have all read stories and seen first hand what has happened to the new home market.  Builders have closed up shop and have had to lay off staff because of the lack of qualified buyers.  Developers have stopped construction in projects that are only partially done.  Many large builders are no longer in business.

You may ask what that has got to do with me selling my home.  It is simple. The down market over the past few years is going to result in a serious housing shortage in the very near future.  Housing prices are down resulting in increased affordability.  There are going to be more buyers out there who can afford to buy, but there is not going to be much of a selection.  With more buyers chasing fewer homes the old Economics 101 comes into play: the laws of supply and demand will result in increased home values.

We are already seeing this play out in the lower priced segment of the market.  Multiple offers are the rule, not the exception.  Most of the homes are selling for more than asking price.  Some buyers have submitted five to twelve offers on different homes but have yet to have an offer accepted.

Government incentive programs have helped and will continue to do so until the housing sector is once again healthy and vibrant.  It is going to happen quickly and most sellers are not going to be prepared. 

If you are thinking of selling your home, take this little quiz and see how you do.  It is time to get your ducks in order so that you can take advantage of the pending boom.

1)  Getting the price right.   A home should be priced:

          A) Higher than comparable home sales in the area.

          B) Lower than comparable home sales in the area.

          C) In line with comparable home sales in the area.

2)  Getting Ready To Sell.  A home’s condition should get high marks for:

          A) Curb appeal

          B) Interior charm

          C) Landscaping

          D) All of the above

3) Getting to “SOLD” Quickly.  The best ways to market a home quickly include:

          A) Realtor’s MLS inclusion

          B) Internet exposure (Separate property web site, CraigsList, Etc.)  

          C) Local Advertising and Open House

          D) All of the above

4) Photographs and Marketing.  How important are photos in marketing

          A) Photos are not important

          B) One or two black and white photos should do

          C) Multiple high quality photos are essential from day one

5) If your home did not sell.  Why do you think your home did not sell?

          A) Incorrect pricing

          B) Your homes condition

          C) Inadequate marketing

          D) All of the above

And the answers are:

1) To set the right price for your home requires a combination of an objective evaluation of your property with a realistic assessment of the market conditions at that time.  Asking too much for a home will discourage buyers and reduce the likelihood that local agents will show it.  Price a home too low and you could leave some of your hard earned money on the negotiating table.  A good rule of thumb is to price your home about 5% above true market value to leave a potential buyer room to negotiate.  This, however, must be adjusted depending on the home’s condition, location and the seller’s willingness to make the home available to potential buyers on short notice.

2) A home’s condition should get high marks all around.  Problems with curb appeal and landscaping may result in buyers driving by your home.  Interior problems like deferred maintenance will reduce the likelihood of receiving offers or will reduce the offer price because buyers will have to bring the home up to their standards.  Staging your home will make it more acceptable and can increase the amount of an offer. We will make suggestions to help you maximize your bottom line.

3) The best way to market the home is through all avenues.  Exposure is paramount.  Single property web sites, www.YourPropertyAddress.com yield surprising results.  We market our listings on 17 different property search sites.

4) There are still agents out there who think that price, and only price sells a property.  They make little of no effort to enhance exposure through photographs.  We are of the second school of thought on photographs.  The more high quality color photographs available on the Internet, the better.  Our single property web sites often have 30 to 40 photographs.  Most people look at new listings in the Realtor’s MLS and delete those without photos.  The first day a property is on the market THOSE homes have greatly reduced exposure.  We include the maximum number of photos in our listings when the listing is entered into the system.

5) When all is said and done, real estate sales are based on what a qualified buyer is willing to pay and what a motivated seller is willing to accept.  Price is very important.  Location and condition are also important but deferred maintenance could be a deal breaker.  Not many buyers have the skill set or an interest in taking on a “money pit.  Of course, aggressive marketing is what gets the buyer to the front door. 

We will be happy to visit your home and provide a market evaluation free of charge.  We will also make suggestions that will increase your home’s overall appeal.  It is prudent to be prepared so that you can get top dollar for your home.