Your Home Didn’t Sell, WHY?
After being on the market for 6 months, 9 months, a year, and sometimes even more, your home expired off the market. WHY? There are many factors to consider on why your home didn’t sell, and expired. Is it the agent’s fault, the market, or other factors that contribute to listings expiring. Let’s take a look at a few…….
Home is Overpriced
As much as we all would like to think that our home has appreciated in value, this might not be the case. Depending on when you purchased the home, you could be “Underwater” in value, or “Upside Down“. With just coming out of a down market, we have to take a look at what homes are selling for in the area. You could check the internet for values, however a better idea would be to contact a local Realtor, for a CMA or Comparative Market Analysis, however the best idea would be to call a local appraiser. Yeah you might spend $350, but this will give you a good idea on what fair market value is of your home, and what it will likely sell for in the current market.
Before becoming part of the list of “Expired Listings” or if you have already become part of that list, get a good idea if your home will be or was over-priced for the current market. Yeah you might have put $20,000 into the home in repairs or upgrades and expect to get more back then you put in and purchased the home for. This might not be the right market to sell in if you don’t have to sell. If you have to sell due to employment or a change in life, then you will have a good idea of what you can expect in today’s market.
In most cases, homes expire off the market due to price. Is this from an agent listing the home for a higher amount just to get the listing, or is the owner living in a fantasy and thinking their home is worth more then what it is. Either way, this is the biggest contributing factor to not getting an offer and successfully selling their home.
One of the biggest factors to consider when marketing your home is the price. This contributes to about 75% if not more of the marketing of the home. If your home is over-priced from the starting gate, all the internet sites and marketing an agent will do won’t help, and surely won’t get you to the closing table. Do your homework, and the best idea is to get an appraisal before listing or re-listing it.
With the “Days on market” as one of the largest statistics buyers look at in today’s market, a seller has a very short window to be in control. By pricing it correctly, you can be in the drivers seat right out of the gate. Just remember, you might not be in a hurry to sell and can wait for your price, but buyers see it as the longer the “Days on Market” the more room to low ball or negotiate the price.
Put your “Best Foot” or “Best Price” forward from the start to get your home sold and not on the dreaded “Expired List”
It’s the Realtor’s fault
Seller‘s are quick to point fingers at the Realtor. This might very well be true. The second largest factor is the agent you choose. Did you pick the agent because they are family or a good friend of the family. You might think you are doing them a favor by giving them the business, however are they the best choice for selling your home and getting it priced right.
You should interview a few agents before listing with one. You will get a chance to see how the agent will price your home, market it, and how much time they will dedicate to your listing. Is the agent a part-time agent or a full-time agent. With experience and dedication you will cross paths with an agent that is professional and an exceptional Realtor, compared to about 3 or 4 agents that are fair to average. Choose the right agent for their skills and professional history and not just a family member or a good friend of the family.
As you interview agents, you will run across agents that will tell you want you want to hear compared to agents that will tell you the truth, and won’t worry about walking away from an over-priced listing. Agents with more experience won’t have a problem with telling you what the market will bear no matter how much expect to sell your home for, or walking away from a listing that is over-priced compared to an agent with little or no experience, and will tell you want you want to hear just to get the business and list your home.
Is the Realtor using comparables that are truly comparable to your home, and not just the home down the street, that is completely remodeled, larger, or newer, just to list it for a higher amount. Yeah, you as a seller wants to get every last dollar out of your home and not leave a lot of equity on the table.
Have you already fast the dreaded “Expired List”. Did your agent provide feedback from other agents, or did you not even get any showings on the property to get feedback. Did your Realtor, discuss pricing with you or hound you to reduce the price to get the home sold. This might be a little to late depending on the days on market your home has been on the market. Does your agent even care enough to discuss price reductions with you? Do they care enough if your home sells or not, or are they just happy to have a listing.
Make sure you do your homework before signing a contract with an agent, and be stuck with them until the contract runs out. Yeah you can drop the price, however, a poorly priced and marketed listing can cost you more money in the long run.
You can’t change the current market, or the number of short sales or foreclosures that are effecting the market, hoever if you have to sell in a “Down Market” you can control the price you list your home at, and the agent you list with.
Make sure you do your homework and interview agents. Also ensure you have a good experience and get the best price you can in the market, see what other testimonials and feedback others have to say about the agent. Also ask the agent if they can provide you with a name and number of others you have worked with. If they don’t have any names and numbers to provide to you, interview other agents in the market that have done transactions with them. See what other agents have to say.
Make sure you have a good list of questions you are going to ask the Realtors that you interview. Having a good set of Real Estate Questions for the interview will help you to ensure you don’t forget anything during the interview process.
With more then 85% of the buyers starting their search on the internet, a good part of the interview is to see how “Tech Savvy” a Realtor is, and how much influence they have on the social networks. Another good idea is to search on your own and check the social net sites to see how active and how much influence a potential Realtor has.
As you have heard many times, make a good first impression, this is not only true when potential buyers are touring your home, but also comes into play with the photo’s of your home. Remember the first impression with most buyers is the internet, and the photo’s tell a huge story to potential buyers.
Check the quality of other photo’s the agent has taken, the sites they market your home on, and if they provide not only a virtual tour but video of your home. Just because all Realtor’s carry a license, doesn’t mean they all have the same skill level and will market your home the same.
Have you every heard of the 80/20 rule? This can apply to almost all businesses and in your own life. 20% of the people will do 80% of the business. Is the agent you choose in the 20% or are they in the 80%? This factor can play a large role in how well your listing will go, and if it will be an easy smooth transaction. Do you want your home marketed part-time or full-time?
Selling your home and avoiding the “Expired” list all starts with you and a little due diligence on your part. Start on the right foot with the best agent guiding you.