Selling a piece of real estate isn’t easy. Regardless of the type of market your property is in, you always need to put the best foot forward. Just a few seemingly minor oversights can reduce demand and impact the number of offers you receive. This is the case whether you employ the services of a real estate agent or attempt to sell on your own.
If you are having a tough time generating interest, there are a few common culprits. Some of these you probably know already, but don’t want to face reality. Others may open your eyes, but either way they must be dealt with immediately. The longer you go without addressing property issues, the longer it will take to get the offer you are looking for. Here are five reasons why your property isn’t selling.
- Poor First Impression: First impressions are crucial in any real estate transaction. The inside of the home can be immaculate, but if the curb appeal is poor it may not make a difference. An important exercise for any seller is to take a picture of the outside of their home and circle the first item they notice. This is the same thing a potential buyer will notice as well. An old front door, broken shutters, overgrown shrubs or pealing paint on a hand railing all give buyers a bad first impression. Most of these items are an easy fix with just a little bit of work and a few dollars. Regardless of what the negative exterior items are, they must be improved prior to putting your home on the market. Not only will the pictures and videos look poor, buyers will not enter the home with a positive frame of mind. They will be thinking of how bad the exterior looked instead of focusing on the interior.
- Ignoring Improvements: Selling a rehab property is straightforward. You have given the property a complete facelift and you will know pretty quickly whether you did the right work and priced accordingly. Selling a rental property is always a little bit different. Even if you have had great tenants you don’t know about the deficiencies of the property. You also may not want to dump a bunch of money into the property prior to listing. This is one of the biggest mistakes you can make. You don’t need to update everything in your property, but you can’t ignore the basic improvements. Simple updates to the electric or a quick coat of paint can go a long way. If a buyer sees an item ignored their natural inclination is to think there are other items like that throughout the property. They will not be as motivated to make an offer and if they do it will not be as aggressive as you would like. Always make the basic updates and improvements prior to listing. A little money spent now will equal a big return when the property sells
- Overbearing At Showings: If you plan on using a real estate agent, you need to let them do their job. You may think that you are helping by being present at showings, but it is often the worst thing you can do. You have an emotional investment in the property that a real estate agent does not. They will present the property in a measured way that is free of any emotion. Owners at showings often like to explain every feature in the property and why they made an improvement. Think for a second just how annoying and overbearing this is. The buyer won’t give the property their full attention and will want to get out almost as quickly as they entered. You are not helping by being at the showings, or the open house. If you are selling on your own let the property sell itself. Overselling is a great way to lose buyer interest and turn them off.
- Listing Too High: We live in a different world even from just a decade ago. It wasn’t that long ago if we wanted to sell our homes we would list high, get a low offer and meet somewhere in the middle. Today, you need to list at fair market value or buyers won’t even look at your property. Trying to squeeze every last dollar may do much more harm than good. By listing too high, buyers won’t even look at the property. After just a few weeks you will be forced to drop the price, which is a red flag for buyers. They know you may be desperate and will adjust their offer accordingly. You are always better off listing at the fair market value in the hopes of generating demand and pushing the price up organically.
- Poor Or No Counteroffer: A real estate transaction is largely about negotiation. Very rarely, if ever, is the first offer accepted. There is usually a good amount of back and forth that takes place. If you do get an offer, don’t dismiss it regardless of the price. The buyer is not insulting you with a low offer, they are simply trying to get the best deal possible. By not countering you can often lose the best buyer available. Even if you counter close to your asking price this gets negotiation started.
If you are thinking about listing your home, you should take the time to review these five items. Don’t just throw your home on the market and hope that buyers come running.