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2020 has been a tough year.  Even though we've had many struggles, we hear on the news and read in the paper that the real estate market is hot!  You may ask, “If we’re currently in a strong real estate market, why has my home not sold?”

Here are a few reasons why a home may not sell in a strong market:

The Price

Sometimes when the market is hot, homeowners attempt to set their listing price higher. Their hope is that with inventory low, desperate buyers will be willing to pay any price for a house in a desired neighborhood! Sellers must remember, though, that in today’s market a house must be sold twice; first to the buyer and then to their bank.

A buyer can agree to pay the homeowner’s asking price, but after the bank conducts their appraisal, the price might need to be adjusted. The bank will only give the buyer a mortgage for the value of determined in the appraisal.  Most buyers do not have the out of pocket for the difference in the agreed upon price and the appraised price.

Sellers must also keep in mind that today’s homebuyers are well-educated. The internet has made it very easy for buyers to shop around in the comfort of their current home.  Many start the search months before they are actually ready to buy.  What does this mean? It means that they’ve done their research on the neighborhoods they are interested in and already have an idea of prices in that neighborhood.

This is why it’s so important to make sure that your home is priced right from day one on the market! Your realtor will advise you on what price your home should be listed for.

The Condition of the House

In many areas, builders are taking advantage of the lack of inventory of homes for sale by building new houses. These newly constructed homes create competition for existing homes in the market. For this reason, many homeowners are making renovations and updates to their homes to compete with the new construction in their marketplace. If you are trying to decide whether to do upgrades to your home, search on the internet in your area.  Look at homes as if you are a buyer and then look at your current home with the same eyes.

Most agents recommend that homeowners declutter their houses before putting them on the market. Buyers want to be able to imagine themselves living in the home instead of focusing on the current homeowner’s decor

It’s important to take care of the small problems like dripping faucets and torn screens prior to listing your home. Making sure your home is in tip top shape will make buyers fall in love with it faster and can ultimately help you get the right price for your house!

Marketing Plan

Having a marketing plan is important! According to stats in 2018 given by the National Association of Realtors, nearly 95% of buyers searched online for a home last year and 54% of buyers stated that searching online was the first step taken during the home buying process.

If you want to sell your home, you need a real estate professional who understands your local market and knows how to promote your home online. Something as simple as using pictures taken by a professional photographer can make a huge impact in advertising your home!

Lack of Communication with Your Agent

Keeping an open line of communication with your agent is crucial in getting your home sold with the least amount of hassles, in the right amount of time, and for the right price. From the beginning, your agent should establish a continuous line of communication with you. Home buying and selling can come with its fair share of difficulties but open communication is always key to a smoother transaction!  Be open to what your Realtor is telling you, they are trying to get your home sold for the best price.

 

The right price, condition, and marketing strategy allow for homes to be sold quickly. If yours isn’t selling, sit down with your Real Estate Agent and  take a look at these four things. Changing one or two of these things can help get your home sold quickly and for the best price!