Selling a home can be very challenging unless there is a strategy in place to sell. There are many steps to take before you list it for sale to ensure a quick sale and a few days on the market.
Deferred Maintenance Present
Ensuring that all deferred maintenance before a home is listed for sale is imperative. Deferred maintenance may stand out to a potential buyer and that may be the first thing when they walk into the house.
Paint that is peeling, and if there is obvious signs of deteriorated wood, wood rot or obvious signs of termites, this will deter a buyer. Most buyers do not want to purchase a money pit unless it is being purchased way below market value due to the deferred maintenance. Other maintenance items, such as any outstanding plumbing issues, should also be addressed by plumbers before listing the home for sale. If there are obvious water leaks even in the exterior including leaking hoses or dripping faucets may cause a buyer to turn and walk away because if they can "see" those things they may wonder what else has not been repaired!
Curb Appeal is Not Inviting
Address curb appeal to ensure that the home is inviting and welcoming to any potential buyer coming to view the home. Ensuring that the landscaping is tidy and up to date, add seasonal flowers, and make sure the flower beds have been weeded. If you have a lawn, make sure it is mowed, and free of weeds. Certain areas of the country are now using artificial turf, and this is an option for some homeowners. It always is green and looks nice! Here is a detailed guide to artificial grass costs if you're interested.
Make sure the front porch light are clean and all light bulbs are working. The front door should be painted if needed. If there are any side lights or windows in the door that they are clean and sparkling.
If a home has poor curb appeal, a buyer may not even want to come and view it in person. Add decorative furnishings such as a bench or chair. Homes which have limited outdoor space will benefit from adding potted plants with annual color.
Home is Overpriced
The real estate market will dictate the value of a property. A home is worth exactly what a buyer is willing to pay for it. What that means to a seller is a home valued at $750,000 in today's market, may not have that same value two years from now. The value of a home can be influenced by the economy, interest rates and world events. Pricing a home at market value is one of the most important factors to take into consideration. Buyers are savvy and know what other similar homes in the area have sold for.
Overpricing a home can and does have disastrous effects. Buyers will think the seller is unreasonable and it sets the tone for the entire transaction. Waiting to lower the price to get in alignment with the market is also a mistake. Overpriced homes should be priced in accordance with the real estate market. If not a seller will always stay slightly above the market and chase it down. Ultimately, it will result in too many days on market and may not result in a sale at all.
Comparable Homes are Selling!
When comparable homes in the same neighborhood are selling, that is an indicator that the home may be overpriced. There are other factors to consider with comparable homes including if the lot is larger and more livable square footage. Other homes may have been remodeled or have an updated kitchen. These are factors to consider if other homes are selling in the same neighborhood. It is important for a seller to be objective.
Too Many Days on Market
Buyers are always going to wonder why a home has so many days on market.When a listing sits there and accumulates days on market, buyers may think there is something wrong with the home or have some type of defect. Or they may think the home is overpriced.
When a home has too many days on market, that is a fairly strong indicator that the home is overpriced for the market and for the condition of the home.
Pricing the home at market value or slightly under in the beginning of the listing will generate the most activity. This will also help to result in a quicker sale.
The most important factor is to price the home accordingly and at market value. If a seller is not able to address deferred maintenance that is acceptable, as long as it is reflected in the price. Pricing a home correctly in the beginning will ensure that it sells close to asking price. Selling a home quickly also reduces the carrying costs for the seller.
Other Valuable Resources
Overpricing a Home Can Have Damaging Effects via Bill Gassett, Maximum Real Estate Exposure
Selling Your Home 101 via Michelle Gibson, Wellington Home Team
Overpricing a Home and It's Effects via Kevin Vitali, Merrimack Valley Real Estate
About the Author
The above real estate article “5 Reasons Why that a Home Has Not Sold” was written by Sharon Paxson, Realtor. With combined experience since 2005 with selling or buying, we would love to share our knowledge and expertise and guide you through the home buying or selling process.
We service the following Orange County CA areas including Corona del Mar, Newport Beach, Newport Coast, Orange, Santa Ana, Sunset Beach, Tustin and more! If you are considering selling your home, we welcome the opportunity to work with you and list your home with a top Newport Beach CA Realtor.