Why Won’t My House Sell?
Can’t get your home sold? Perhaps the following tips are just what you need to sell your house faster.
It’s almost shocking to see homeowners, and especially those flipping houses, begging for someone to help them figure out why their homes won’t sell in this market.
From the data being spewed out by Realtors on low inventory levels, high demand and bidding wars being circulated by the media, it does appear to be a little bewildering that anyone is having a hard time selling property. Yet, it is happening. Looking at some recent trends and headlines, it could become an even more common scenario in the near future.
So why are some having such a hard time selling houses while others can’t seem to find enough inventory to meet the incredible demand?
5 Reasons Houses Aren’t Selling in this Hot Market?
1. Lack of Education
Figuring out the basics of real estate negotiations and transactions, in conjunction with knowing the law, is pretty much like comparing preschool to MIT. Unfortunately, many green investors are rushing in; thinking that they can figure it all out, only to sabotage themselves on their first deal. It’s the intricacies that make all the difference in success or failure.
Among the factors that are catching many off guard today are financing, due diligence and accurately evaluating deals.
This is perhaps the biggest of all real estate investment and house flipping blunders. It is seriously underestimated, yet can completely derail the careers of investors and bury them financially in just one deal.
Sadly, this seems to be a road that more and more investors are embarking on. You can polish off the finest looking home in three counties with immaculate craftsmanship and superior materials, but while this may make for a dazzling piece of artwork, it probably isn’t the path for selling a house anytime soon. This is happening from Southwest Florida to Chicago and even San Diego. Unfortunately, if you have to list your home at 150% to 250% of market value and comparable home listings, it could be an incredibly long wait.
Remember that many home improvements don’t add a single cent to the appraised value. Those with the liquidity to pay all cash are probably intelligent and money savvy enough not to overpay for a property by that much.
Pricing is consistently the determining factor to how fast homes will sell. Every home will sell if it is priced right. If you aren’t getting any bites, then it is either an issue with being overpriced or visibility. If you are getting lots of showings, but no offers, then you may not be too far out of the ball park. Be sure to provide an accurate price, as every day counts.
4. Cohesive Style
Does the interior of the home match the exterior? Having a fabulous exterior and cheap interior or fabulously upgraded interior in an ugly shell can both work against you. Balance your remodeling and spend better.
Renovation experts have known for decades that a clean slate is best. It doesn’t matter how extravagant your rehab is or the materials used, if it doesn’t gel with your buyers it is a waste of money. Recognize that many higher end buyers will already be planning to redo everything anyway. Take this into consideration and make the property as neutral as possible.