A home sitting on the market not selling is a drag. The home seller has all this hassle and none of the benefits.
For agents, it is no picnic either. It costs time and money and they don’t get paid and have an unhappy client. The seller feels that the agent is to blame, and they have done nothing to sell the home. When you do get a showing and buyer is not interested or doesn't give feedback, the seller feels that the agent said the wrong thing and blew the sale.
Here at the George Lorimer Real Estate Team, we sell 5-8 homes per month 60-100/year. While the average agent sells 3.3 homes/year. Even with this experience, when a home doesn’t sell the owner feels that we are not doing our job. The SOLUTION to selling your home is simple but not easy. The SOLUTION is staring at us in the face.
Kind of like losing weight- Eat lean protein, vegetables, water, and exercise 30 minutes a day. That is the SOLUTION, but how many of us do this? (check out my video, not me).
Similarly, for homes that are not selling, the SOLUTION is to lower the price to a number where buyers will buy the home versus a neighbor’s home. They will even choose it over nicer homes because it becomes the best value.
9/10 times it comes down to the PRICE... BUT- Here are some other alternatives of why homes aren't selling.
Accessibility- Is the home available to see several times a week with a couple of hours’ notice?
Is the condition OK? Does it need to be cleaned or decluttered? Usually, price solves this issue. You can give the buyer a carpet credit at the close of escrow.
Marketing- Can you find it online? Do the pictures look good, better than an iPhone photo? (The only exception is if it looks bad inside you may want to post just 1 exterior photo to create a "BUZZ").
Local market and home sales- Which homes are selling RIGHT NOW in your neighborhood? You're not chasing the legend of Mr. Jones that sold his for $100,000 more than any else months ago and gave the agent $1 commission, are you?
Which homes are active, you are competing with those? Look at homes 20% above and below your price. Are interest rates going up or down and is the market rising, declining, stable?
Buyers shop on value, not price alone. I see too many agents and homeowners saying... "We are the only single-story, 3 BR, corner lot, with an updated kitchen, located on a canyon, with fruit trees within the neighborhood". That would be great if a buyer had the exact criteria... a 3BR, corner lot, fruit trees, etc. Most buyers that are looking at 3BR homes would love a 4th BR and would be willing to pay $25,000 more for that 4th BR. Conversely, if the 3BR would have been $35,000 less, the 4BR buyer may have picked the 3BR home. Because at that price difference it becomes a better value.
You may be thinking that I am an idiot or super obvious, both might be true. However, I have sold 1000+ San Diego homes and talk to buyers, sellers and agents daily. They don't seem to get it and still, 20-30% of San Diego homes come on the market and don’t sell.
It could be a clueless agent, it could be a stubborn seller, but it definitely is the PRICE. In the past, I have made some of the above mistakes. BUT Now, I have a fool-proof, system in place that will monitor the showing and feedback answer the age-old question- SHOULD YOU LOWER YOUR ASKING PRICE?
Success in selling a home rest 90% on setting an attractive asking price. The seller is the only one that can lower a price. Ultimately if the buyers are not seeing the value based on the asking price you set on your home... the agent can do little. If the home seller, does not adjust the price, based on the buyer feedback, it will not sell. Price adjustments are like penicillin or aspirin, they cure most things. Call me today George Lorimer 619-846-1244 to discuss your home sale and strategic pricing.
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