The Reasons Houses Don’t Sell
“Why is my house not selling?” and “I’m desperate to sell my house!” are two of the most common refrains real estate agents hear from real estate owners whose property has been sitting on the market for a prolonged period of time. Read on to better understand why listings go stale and when to worry about a house not selling.
The Top Five Reasons Houses Don’t Sell
Home sellers have two main objectives: to sell quickly and for the highest price. That hasn’t been difficult to achieve over the past ten years, with market conditions favouring sellers due to high demand, low interest rates, and an ongoing housing supply shortage in many Canadian cities. Despite this perfect storm, some houses are a hard sell. The question is, why?
There could be a number of reasons your property might not be attracting any offers, ranging from broader economic conditions to nitty-gritty details within the property itself. But one thing’s certain: long-standing listings eventually get stale, and it can happen fast for serious buyers browsing new listings daily or hourly in real-time.
Below are five of the top reasons your house isn’t selling and what you can do about it.
The Wrong Listing Price
To you, your house is priceless. After all, you have an emotional attachment to the place you call “home.” But in reality, a property is only worth what someone is willing to pay for it.
The right listing price is influenced by a combination of factors, including supply and demand, the home’s location and condition, the seller’s circumstances, and the market.
To determine whether your price aligns with the sale prices of comparable homes in your same neighbourhood, you’ll want to connect with a real estate agent who can give you the hard numbers – also known as the “comparables.” Then, based on the condition of your home and your circumstances (read: how quickly you need to sell it), your agent will recommend the listing price they believe will attract the right buyer.
When prospective buyers begin shopping for a home, the first step they take is either to create an actual budget for their purchase or to decide on the maximum price they’re willing to pay for new digs. With this number in mind, the buyer begins to browse online listings within their price range. Success in selling your home can come down to listing it for a few dollars over or under that threshold. That’s why it’s important to be realistic when it comes to pricing your home. For example, if you unrealistically price your home at $900,000, you’ll likely never even be seen by a buyer using an online tool and looking to spend a maximum of $800,000.
While overpricing a home is a concern, so too is underpricing it. If you underprice your home in the hopes of creating a bidding war that will eventually net you more than your house is really worth, you might be surprised to find yourself with a scant number of showings, as buyers may wrongly assume that a home priced well below market value has something wrong with it. Savvy buyers also know that if they overbid on the house and their mortgage lender appraises it for a lower value, they’ll be on the hook to come up with the difference – a big turn-off for most homebuyers.
Bad Listing Photos
Believe it or not, bad listing photos can be a reason that your house is not selling. Although many homebuyers still drive around on the weekend searching for “Open House” signs, most of today’s buyers will take a more targeted approach to their home hunt. They hit the streets armed with a budget, their list of liveable locations, the features their future home should or must have, and the specific addresses of homes for sale that they believe are worth an in-person tour.
So, how do you ensure your home makes it to their shortlist?
According to recent research, more than 90% of home buyers search for homes online, and 85% of those buyers say photos are the most important factor in deciding which homes to view.
It’s customary for agents to pay for a professional specializing in real estate to photograph your home as part of the marketing package they include in the commission they charge.
A few things that great listing photos have in common include:
- They are taken after the interior has been decluttered, cleaned and staged, and the exterior has been prepared by painting the front door, mowing the lawn, trimming trees, cleaning up the garden, etc.
- They are taken with a wide-angle lens mounted on a tripod at a height that shows off the room and its contents in a flattering way.
- They are ordered in a logical way that matches the MLS listing.
- They include a variety of shots of each room, plus deck/or balcony spaces and exterior/or neighbourhood shots.
- They are well-lit with a clean look that’s bright and airy without being washed-out.
- They are crystal clear without a trace of blur, and the colours are accurate and not overly warmed up or cooled down.
If they include a video or VR Tour, the pace of the video/VR tour is slow enough for viewers to get a good look at each room before moving to the next, with a smooth transition between shots.
On the flip side, nothing is worse than making a potential buyer fall in love with your listing photos only to discover your home doesn’t appear at all the way it was presented when the buyer arrives for a showing. Remember, good and honest listing photos are a critical part of your selling strategy.
You Didn’t Bother to Stage the Property
While it’s important to showcase your listing in a realistic way, it never hurts to do a little primping before putting up the “For Sale” sign. Some buyers have trouble seeing past what a home is and visualizing what it could be, and that’s where home staging comes into play.
Staging a home can help highlight its best features, minimize the worst, and give prospective homebuyers some inspiration about how they might use the space.
Remember that as a home seller, you’re not only selling the property, but you’re also selling the idea of “home.” Putting an empty house on the market can be a big mistake. Research shows staged homes sell faster and for one to five per cent more than empty houses, which can leave buyers with an impression that the house is smaller than it actually is or that it’s uncared for.
You’re Selling in Unfavourable Market Conditions
When it comes to selling your home, many things are within your control. Others are a wild card, as far as the seller is concerned. Factors such as a growing or declining population, less-than-optimal economic conditions, high interest rates, a housing supply glut coupled with reduced demand, and even the weather can all contribute to a home not selling.
What you can control, however, is WHEN you choose to sell your home. If you don’t need to sell urgently, an experienced real estate agent can help you better time the market. They have the contacts, research tools and knowledge required to analyze current market trends and help predict what may happen further down the road so you can decide if now is a good time to sell or if you’d be better off waiting a few months.
They’ll also help determine which season might be the most appealing to homebuyers. While house hunters tend to come out of hibernation in the spring and summer, there are also benefits of buying in the winter. Your real estate agent will tell you what’s needed to boost your home’s curb appeal for a summer sale and how to take advantage of winter’s more focused buying pool – who faced with fewer listings tend to be less inclined to engage in aggressive price negotiations – in contrast with summer buyers – who, having many options – feel more entitled to haggle over price and conditions.
As a seller, you should also always keep your ear to the ground for news on other circumstances that could affect home-buying trends in your area, such as announcements about a big employer who’s slated to move to your town or city or a new development that’s ready to break ground, as both may increase housing demand.
Sometimes, it can be tough to pinpoint the exact reason a home isn’t selling. At other times, it’s painfully clear. Consult with your RE/MAX agent for their insights on what you’re doing (or not doing) that might be helping or hindering your sale.
You Didn’t Work with an Experienced Professional with Local Knowledge
Selling a home can be complicated, even under the most favourable market conditions. Markets are impacted by everything from local, national, and international economies to population fluctuations and even adverse weather events, and they can change from sellers to buyers in a snap.
In uncertain times, a little professional, local know-how can go a long way toward maximizing the return on investment for your home.
While most homebuyers and sellers only have a limited number of transactions under their belts, an experienced listing agent who has handled hundreds of home sales under a variety of market conditions will know what to do to help you arrive at the sales result you want.
