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Not Priced Effectively
In today’s challenging Real Estate environment, the price that is set in your home can be more than 75% of the marketing. What in the world does that mean? Simply, if a home is overpriced, the best real estate agent in the country with the most sophisticated marketing will not be able to get you to the closing table. There is no easy way to say this, but if you choose the wrong price, you will be doomed to languish on the market. All the marketing and advertising will be wasted along with a lot of time. For some reason, many seller’s think time is their friend when in fact it is their enemy. As a Realtor, you don’t know how many times I have heard “we want to price our home at X because we are in no rush.” The seller thinks they can wait for the right buyer to come along to get their price. Folks this rarely ever happens. Time on the market” is one of the most important statistics in the Real Estate industry. This is the one piece of data that every buyer asks for when viewing a home. In fact, I cannot even remember the last time a customer did not ask me “Dan how long has this home been on the market?” Every buyer wants to know this because if the home has been on the market for a long time, they feel like there will be more room to negotiate. This is just human nature. Buyers also start to wonder whether there could be something wrong with the home when it has been on the market for an extended period.
Not Effectively Marketed
In the age of the internet that we live within, if your home is not extensively and effectively internet marketed the largest percentage of home buyers are not viewing your home. According to the National Association of Realtors over 90% of home buyers begin their search for a new home online. In addition they click on the home listings that have multiple photos and visual tours more often than any others. I cannot stress enough the importance of being extensively internet marketed with good ad copy, beautiful “High Dynamic Resolution” photos and a Virtual Tour. Establish a marketing plan. There are ways to reach the target market for your home. All of them need to be explored to maximize your exposure.
Not Convenient To Show
Home buyers like to see homes when it is convenient for their schedules, so making it difficult to get an appointment to view your home may get it crossed off their list. If your home is for sale it should always be kept neat and ready to show, so scheduling an appointment on short notice shouldn't be an issue. Of course there are times when this can't happen i.e. family emergencies, sick children, etc. and that, of course, is understandable.
Not Showing to Your Full Potential
One thing that I have discovered through my years in real estate is that there is a buyer for every home! Your home doesn't have to be the best on the block or worth a lot of money to show to its potential. Just make sure that it is free of clutter inside and out, free of odors from pets, smoke, etc. and listen to your agent when they suggest staging tips. The fact that we are in a seller’s market does not mean that there is a lack of competition within certain price points and subdivisions. When there is a good selection of homes to choose from home buyers will not look for the potential in your home; they need to see it. Demonstrate how good your house can show and it will spark an interest from the right buyer. Also, a house that doesn't show well on the surface gives the buyers the perception that unseen items haven't been maintained either (such as roof, mechanicals, foundation, etc.).
Communication Not Effective
By far the most common complaint I receive from clients who had their house on the market before was that they never heard from their agent. You need to be sure you are listing with a full time, professional agent who will communicate the good and the bad info on a regular basis. Ask your new or potential agent how they will stay in contact with you. Your agent should be providing local market updates, feedback
from recent showings, the need for price reductions, etc. You also need to communicate with your agent and advise them of any changes in your life that will affect your decision to sell.
Financing Not Considered
Price Point vs Loan Limits: If you are at a price point above $550,000.00 you may experience a longer marketing time frame. This is because the maximum loan limit for conforming conventional and FHA are $493,350.00. This alone reduces the number of potential buyers that can qualify. This is one feature of financing but there are many. Financing can vary by county and also by city. Loan rates and requirements can become a part of the negotiation process and they need to be addressed in the beginning.