Robin Spiers 403-836-0849

Home not selling? The top five reasons why it is not

It seems like you have tried almost everything to sell your home, but you are still waiting for the right buyer. In a good market there could be a few reasons why your home has not moved as quickly as you would have hoped. When you review the price and condition of your home, its location, your choice of Real Estate Professional, and his or her marketing plan, you can move closer to getting your home sold.

1. Price

If you do not already have a Real Estate Professional that you trust, or a referral from a friend or family member whose opinion you value,  it is a good idea to obtain a market evaluation (or CMA, comparable market analysis) from two or three Real Estate Professionals prior to listing your home. This should give you a professional opinion from three reliable sources.

Why multiple CMA's? Unfortunately, sometimes a Real Estate Professional may inflate the suggested list price in hopes of getting the listing. This person could suggest that you will get $20,000 or even $30,000 more than the other agents. This is called “buying a listing.”

If one agent suggests a price that is significantly higher than the others, it could mean that this Real Estate Professionals is not your best choice. Each evaluation should be within a reasonable amount, compared to the others. The market does not lie. If you list your house at a value higher than the market value, you will have more difficulty selling it.  As your home sits on the market, the listing becomes "stale" and appears less attractive to potential buyers. The subsequent price reductions needed to align your home with current market value can result in a final selling price that is lower than if you had listed it correctly in the first place.

Imagine your house is worth $140,000. You list it for $150,000. It is less likely buyers looking for $140,000 homes will view your home because it is not within their price range. Buyers looking for $150,000 homes will compare your home to others that are truly in this price range. An agent may even show your overpriced home for comparison when they want to sell listings that are reasonably priced.

Don't help other people sell their homes. Quite simply, houses priced correctly are more likely to sell.

2. Condition

A buyer does not see a home the same way a seller does. Homeowners grow accustomed to the condition of their houses, and when combined with their emotional attachment to their homes,  many items can be overlooked. What looks good to one person may not look so attractive to another – especially a buyer. Most buyers are looking for a near perfect home. This means a clean house, in good condition mechanically and structurally, and with a pleasing, neutral decor.

The ideal situation would be for the buyer to move into a home without having to do any work, including cleaning the carpet. When a buyer looks at a house, they try to imagine themselves living in that home. If any work needs to be done they are less likely to make an offer when compared to another house that is in "show home" condition. At the same time, a buyer could make an offer less than the market value to compensate for any required work. You could lose money by not having your home in top condition.

The paint inside and out should be in good condition. Everything should be kept perfectly straight and orderly. You should walk through your home as if you were a potential buyer, being very critical and asking whether someone would purchase a house in this condition.

A Real Estate Professional can assist you in this task. He or she can take an unbiased look at your home and suggest ways to improve its appearance and most importantly, increase your total profit. When your home is in its “best” condition, you are more likely to receive the best price. While it may seem a lot of work, repairing these items will benefit you in the pocketbook.

3. Location

The third reason a house may not sell quickly in a good market is location. Factors like higher crime rates, untidy neighbours, busy roads and close proximity to noise could contribute to a delay in selling. The only compensation available for the location factor is a lower price. An owner may have to reduce the price so the home compares to others in more desirable areas. Your Real Estate Professional, trained in these kinds of situations, can recommend a good strategy to help you overcome  a "bad " location.

4. The listing agent

The reputation and ethics of your Real Estate Professional is especially important. He or she could create problems for you if they are difficult to get along with. People do not like to work with someone who has a negative attitude or a condescending nature. Real Estate Professionals who are rude or arrogant will have far fewer showings than a cooperative and enthusiastic agent.

Before you hire an agent, be sure to check out his or her reputation. Ask for references. Phone the Real Estate Board. It is worth spending the time interviewing an agent to ensure you will get the results you are looking for. Be sure to read the report, “26 Questions to Ask A Real Estate Professional” included in the Getting Ready section.

5. Marketing plan

It takes more than simply putting a sign on your lawn to sell a home. If your Real Estate Professional is doing his or her job correctly, a marketing plan should accompany your listing agreement. Your Real Estate Professional must make effective use of the latest technology, while maximizing industry and professional contacts, to ensure your home is placed before the most buyers. If the Real Estate Professional does not perform as outlined in this document, you should be able to cancel your listing.

Details are important

There is, however,  one thing you may not be able to overcome: a bad market. In this situation, there are many factors beyond your control.  Fortunately, a good Real Estate Professional can offer some ideas and suggestions when faced with such a situation. For the most part, bad markets are rare. In most cases, in a good market, once price, condition, location, your Real Estate Professional, and the marketing plan are carefully considered, your home will sell quickly and at the best price.