These are the six most-common reasons why homes don't sell and what you can do about it.
1. THE HOME IS OVERPRICED
Optimistic home sellers love to parrot the old adage, "There's a buyer for every home". But they often leave off the qualifier: "at the buyer's price."
The fact is that the market value of a home is ultimately set by the buyer, not the seller. You can set your listing price well above comparable properties in your neighborhood, but at some point it will be up to you, the seller, to accept what the buyer thinks your home is worth.
Overpricing is the most common reason homes don't sell. When you ask an unrealistic price, it sets in motion a process that often works against you. Here's why:
Most real estate agents, and hence most qualified buyers, will see your new listing within 30 days. If it is overpriced, it will be duly noted and interest in your property will wane, especially if you show no intention of coming off your asking price. You likely already priced out buyers who might have qualified for financing at a more reasonable price. Even if you manage to find a buyer at your inflated asking price, the property may not appraise at that figure and the financing will fall apart.
Your real estate agent may have approved or even suggested the inflated asking price to secure your listing, a practice known as "buying" the listing. Other agents often use overpriced properties like yours to help sell their own listings. ("Here's what they are asking, compared to the first home I showed you. Would you like to look at the first home again"?).
If you have a house that really should be priced at $500,000 and you've got it listed at $560,000, you are trying to compete against homes that really are worth close to $600,000 and all of a sudden your home really is not competing well. Your home should compete with other similar homes.
If your home remains on the market for too long, agents and buyers may begin to wonder if there are other, perhaps more serious reasons why it isn't selling. The listing becomes "stale", agents lose interest and stop showing it in favor of better priced homes.
2. THE HOME DOESN'T SHOW WELL
Your home may be competing against new or remodeled houses in your neighborhood. Even the best maintained old house needs a little makeover if it hopes to attract a qualified buyer.
The good news is most of the work will be cosmetic and relatively inexpensive.
A new coat of paint makes rooms look cleaner, brighter and smell fresh. Have floors and carpets thoroughly cleaned. Fix or replace old or broken fixtures and handles.
Just as important is to get rid of clutter. Start packing what you don't need and put it in storage. Take down most wall hangings and pictures. This opens up walls and rooms, making spaces look larger, brighter and cleaner.
Keep the home tidy and clean. Make the beds in the morning and keep the kitchen sink clean. Also make sure to get rid of any stale or unpleasant smells.
This are just a few tips to make your home look more appealing to potential buyers. A good real estate agent can advise you on where your time and money are best spent.
3. POOR LOCATION
Price and condition are two factors that the seller can do something about. A trickier obstacle to overcome is the home's location. Nothing has a greater effect on your home's value. No matter the condition of your home, if it backs up to a busy street or, in Incline's market, it is located at a high elevation, its value will be less than a comparable home with a better location.
The point is, location rules in real estate.
If your home's location is less than desirable, your options are somewhat limited. Good real estate agents will do their best to help you accentuate the positive and eliminate the negative of your circumstances, say by using foliage to screen off offensive adjoining properties or dampen traffic noise.
The best way to compensate for a poor location is to reduce your asking price or offer attractive incentives such as seller financing or a lease option with rent credit.
4. INCOMPETENT LISTING AGENTS
While the majority of real estate agents are honest, hardworking professionals, unfortunately there are those who lack experience, knowledge or just only care about getting paid.
Their bad advice can cost you plenty in time, money and the sheer hassle of keeping the place show-ready 24/7.
An incompetent agent will allow you to overprice your home ("Here's what I can get for you if you list with me!"), not market it properly, be unresponsive to interest from other agents (if they sell their own listing, they don't have to split the commission) and keep you uninformed of showings, feedback or changes in the market conditions that may affect your home.
What's more, if your agent is abrasive, arrogant or otherwise difficult to work with, other agents may not want the hassle of showing any of their listings to prospective buyers.
5. COMPETITION AND MARKET CONDITIONS
We've all heard the terms "buyer's market" and "seller's market." In real estate, market conditions are affected by any number of external forces, some of them predictable (the weather, sort of), some of them unpredictable (the local economy, interest rates, public optimism or pessimism).
In a "hot" or seller's market, homes go fast. Inventory (homes on the market) may be low, meaning less competition for you. Chances are better that you will get your asking price or close to it in a hot market. Some homes sell for more than their asking price.
But in a "flat," "cold" or buyer's market, sales slow to a trickle, inventories grow and buyers can find bargains, especially when they know the seller is motivated (i.e., paying on two mortgages).
If you decide to sell in a buyer's market, be prepared to settle for less than top dollar, or wait to sell until the pendulum swings once again in your favor.
6. INEFFECTIVE MARKETING
Gone are the days when an agent could simply place your listing with the local multiple listing service, place a "For Sale" sign on the front lawn, and wait for another agent to bring a buyer.
Today's top performers launch a multilevel marketing plan that includes listing tours for area agents, regular newspaper and magazine ads and color brochures.
Computers and the Internet also have changed the face of real estate. According to the National Association of Realtors, today more than one-third of all home buyers use the Internet for house hunting. The best real estate agents use the Internet to their (and your) advantage. They have your listing in color on their personal and company web sites with detailed descriptions, lots of pictures and even virtual tours. They communicate via e-mail with other agents and potential buyers. E-mail is an indispensable tool when working with out of town sellers and buyers.
Suffice it to say that if your real estate agent isn't listing your home online through the company Web site as well as with the local MLS, you may not be getting the exposure necessary to find a buyer.