So your house isn't selling in a seller's market - what gives?! I'm going to take one for the collective team and risk all the seller's out there hating me. Short answer: The market has changed. It's not crazy blind offers with no inspections, 30k over asking with a 50k appraisal gap. Buyer's are being choosers. They are being wary of the financial strain in a weakened economy. This began around mid-June and even with the latest interest rate drop in early September, we haven't seen much change. So, let's start with a list of possible reasons you may or may not have considered:
1. Are you being objective about your home? This is a question that encompasses the entirety of your sale. If you are still mentally living in your home, you are not able to objectively see your home as others do. For instance, if you have unique features that you love, but you can't find in similar homes, you might be trying to sell a feature that buyers...just don't care about. For instance, in Michigan, pools are 50/50 whereas they are almost mandatory in Florida or Arizona. Generators are gaining popularity where people don't want the hassle of solar in an area that doesn't get much sun. (According to the Farmer's Almanac, we are ranked #7 for cloudiest days each year.) If you can't step out of your own perspective of what makes your home amazing to YOU, you will struggle to properly apply the rest of the list.
2. Did you deep clean and declutter? I have walked into $700,000 homes that look like a frat house after homecoming weekend. (ok, maybe not that bad.) Homes should be clean, as if you were hosting your favorite celebrity. Would you want them to open your fridge? Would you want them to look in the closet? These things are not off-limits to buyers and if they are dirty or unorganized, they will assume you have not kept up on the rest of the house either. Also, decluttering is very important. I usually suggest you pack up and store anything you don't need for the next 6 months. Your goal is to make it look like you don't need 1/2 the space you have. The upside to packing up 1/2 your things? You don't have to race the clock while signing docs, prepping for inspections and appraisals and trying to find your next home. You have given yourself a lot less to do. So pack up the extra dishes, canned goods, towels, coats, toys and pantry items!
3. Do you have professional photos? I don't mean a Realtor with the latest iPhone, turned to landscape. I mean a professional home photographer, trained in how to capture the home, that can do drone, video, floorpans, etc. to make sure your home is presented the best it possibly can be. I tell buyers and sellers alike - homes are sold online first. The showing is just to confirm what they see is what they get and there's no weird smells.
2. Did you hire a professional? Yes, I mean a Realtor or Broker, not an attorney to do paperwork. But it goes beyond just hiring a Realtor. Do they offer pre-listing services like staging/professional photography, or marketing services like a marketing package, open houses, door knocking or reverse prospecting? What are they actively doing to sell your home? Did they start off strong and taper off or are they still marketing your home weeks after? Are they having the difficult conversations regarding feedback from other agents and their buyers?
3. Speaking of feedback, are you getting offended by feedback or making changes, based on your agent's recommendations? As an agent, we never want to deliver the negative news, but it's our job to make sure you are aware of what is being said. Some feedback is worthless and very subjective to the buyer. That feedback should be ignored. However, if you are hearing your home is priced too high by multiple buyers, then more-than-likely, even if the comparable sales say otherwise, your home is not going to get the attention to sell at the current price. It's time to talk about a price decrease.
4. Are you ignoring repairs? Sure, you put in new floors and windows, but is your roof leaking? Is your electric still tube and knob? Are you required to switch to sewer from septic? Cosmetics can be fixed and may not be the same preference as the buyer. It's best to focus on the bones and maintenance if there is money to invest before you list. Replace the roof, fix the cracked foundation, and update that furnace from 1996. If you are unable to do so, your price will need to be adjusted accordingly. The unfortunate part is maintenance upkeep rarely raises the value of the home. But if marketed correctly, it can raise the interest in the home, which could bring multiple offers.
5. Do you understand the value of what you have? An appraiser told me the condition and amenities of the homes around you sometimes matter more than your own home. For instance, if you have a 50k pole barn and no one else does, your 50k pole barn is worth about as much as a shed. If you have a 50k pole barn and all your neighbors also have a 50k pole barn, they all scratch each other out. Are your values higher overall? Yes, but that can't be the thing that raises your price. If all your neighbors have a 50k pole barn and you have nothing, that will take about 30k off the value of your home. It's something I take into consideration now when I do my market analysis of homes. If you are trying to sell a home with upgrades that leave your neighbor in the dust, you will most likely not see a return on those investments. You must adjust your expectations and pricing.
6. Are there smells or things in the home that may be turning buyer's off? If you are unsure, have a friend come over and walk the house. Is the basement musty, which is common this time of year? Can they smell pets? What about the garbage or last night's dinner? Does the dryer smell? Are you leaving dog poo outside? What about things in the home? Have you depersonalized the home by removing sports or political paraphernalia, family pictures and names? What about taking out excess furniture so buyers can walk through the home with ease?
7. Is the available time for showings reasonable? If you work from home, timing can be tough. Most buyers will want to walk-through during non-work hours, yet buyers come from all shifts. Your goal is to have your home available as much as reasonably possible. The less your home is open to walk-throughs, the less buyers you will attract.
8. Could outside factors be an issue? Finally, Some things are out of our control. We may have a very political or nosy neighbor that send buyers running. Sometimes the smell of the farm or factory is just too much. Sometimes, the busy road or train or bus route plays a part in their decision. The economy, resources and amenities lacking in the home might be responsible. But in the end, the lack of a sale usually comes down to 3 things: location - condition - price.
These 3 things must be in a perfect triangle for a buyer to present an offer. Buyers are out there! They might be taking longer to make a decisions, be a little more picky and ask a little more, but homes are still moving and we still have an inventory shortage.
To get the highest price, your location must be as good as your condition and the price must represent both. If your location is negative (busy street, on/not on a bus route, no sidewalks, etc.), then your condition and price must be improved. If your condition is lacking (weird floor plan, outdated, not clean) and with nothing to do about your location, then you must adjust your price.
The goal is to be the best priced home in the best location in the best condition at the time of listing. If that's not the case, your home will sit, which I expect it's doing. So how do you make improvements that matter in order to get the price you want?
1. Take it off the market while you consider your options. (Note: be prepared for the inundation of Realtors who prey on the recently cancelled/expired sales.) No one is seeing it anyway, you might as well breathe for a bit while you make the changes needed. If your Realtor is not doing all the things listed in #2 and not having the difficult negative feedback conversations with you, you need to seek out an agent that does more than the average sales person.
2. Seriously consider the negative feedback. If your agent has feedback, but you don't want to hear it, it's time to pull up your big boy and girl pants and listen to what people are saying. These are the reasons your home is not selling! If it's anything other than 'great home, just not right for my buyers', have your agent call them back and get the specifics. And if multiple people say the same things, fix the issue! For instance, if you are hearing, the kitchen is old, the roof is old, or we really need a 2nd bathroom. Get a quote for those things to be done. Get 3 quotes and once you have those quotes, either lower the price by what those quotes say or have the work done and re-list. It's that simple. But what if you've had zero walk-throughs? Easy: overpriced. Immediately drop it by 10k. Immediately. If you're not willing to consider that yet, ask your agent to host a broker open house for feedback during a time that agents would actually come. (Note: you'll want to do this before you take it off the market.) This would be early afternoon. and you need to entice them to give up their time with a giveaway, gift card, or something. If you aren't interested in that, your agents should have good relationships in the business that will be willing to review the online listing, 'Hey - I know you're busy. If it's not too much trouble, will you review the listing and tell me what sticks out to you, both on the disclosure and the photos?' and then listen. Agents will share their opinion with your Realtor, if asked. Here's a hard truth: If you are represented by another agent and you're going to an agent friend that YOU DID NOT HIRE asking how to fix things that your agent should be helping you figure out, you should know - that's a dick move. Not a good look for you, your friendship or that other agent. On flip side, do NOT send your freshly listed house to any other agents that you are friends with, but choose NOT to hire and say "Bring a buyer!" If we could reach through the phone and slap you, we would. We are focused on the people who did want to work with us and we'll see your home on our hot sheet like every other listing.
3. Make the changes needed. Whatever the top 3 things are that people tell you, make the changes. If it's price, lower it. If it's the roof, replace it. If it's the bubblegum pink bedroom in the basement - paint it the most generic taupe you can find. (I like Shiitake by Sherwin Williams). If you cannot afford, either on a time or financial basis to make the changes needed, you must accept the fact that the price needs to meet the condition and location. Again, condition is not always maintained and clean. Sometimes condition is as simple as not everyone loves a different color in every room. Not everyone loves a rolling cart island. Not everyone loves your giant entertainment center that takes up 1/2 the room that you offered to include with the sale. If you are not able to make financial changes or you think your house is great, as is, lower the price by 10k right now and see what happens. The last 2 of 3 homes I've priced at market value have sat on the market. The 3rd one I priced out at market value and took 10k off that to list. Where the first 2 homes have had 1-3 showings in a month or more, this home had 11 showings in 6 days and 2 offers, both at list price. The market is different, not worse, just different, and the seller's mindset must also be different.
So I want you, the seller, to take a deep breath. Your home is still valuable. You will still make a profit on it if it is in the same or better condition and if you've bought it 2 or more years ago. However, you must understand that this is no longer the 3 days on the market, 45 showings and 12 offers all over 30k market. This is a very conservative market and most-likely, even when priced correctly or just under market, you will receive 1, maybe 2 offers at or slightly above list price. If you can set your ego aside (yes, I said it), and understand how the market is moving, you will still have a great sale and you may still be friends with your agent after it's sold.
