Have you gone thru more than one price reduction? Don't understand why your neighbor's home is already in escrow while your home is still on the MLS showing "Active"?
The majority of the time, price is the reason why the home isn't selling. Buyers will think the value of your house is less than the list price you have.
Market Value is the worth of what a buyer is willing to pay and a seller willing to accept. Arriving to the magic price to enter escrow and close is a difficult negotiation. By hiring a real estate agent and listen to their professional opinions you can market your home and sell fast. It's not wise to go with an agent because they say they can get you more than what the other agents think the house will sell for.
Here is a list of most common mistakes sellers make when setting a price:
1) Price Based on Need:
What you want to make from the sell of your home will certainly fail because buyer will not take your needs into a factor. Base the price on current market value that will sell your home fast and save you money in the long run.
2) Price Based on Ego:
Let say that your neighbor home sold for $200,000 last year and you want to $250,000 because you "know" your house is better regardless that the market increased five percent since your neighbor sold. Unfortunately for sellers, buyers enter the market being educated about the fair market value which weights on their decision to consider looking at your home and placing on offer.
3) Price Based on Greed:
Even if you "test the waters" and price your home higher than a market value because "you never know, someone could come along who just has to have it. Besides we can always lower the price later." The issue is that buyers realize the price is unrealistic and discourages them from taking a second look. If there is a price reduction but not enough to current market value, the home will sit even longer and pretty soon you have a listing that has been on the market so long buyers decide there is something wrong and steer clear from the home.
To price your home right, real estate agents can give your Competitive Market Analysis (CMA) which breaks down the sales price of homes that are similar to yours in location, size, age and condition.
The market is always changing and your agent should be updating your CMA whenever anything comparable to your property sells.
4) Put on a Good Show:
Second biggest reason a home isn't selling is your home is clutter and is unorganized. Buyers are looking to feel a "connection" to the home. They want to be able to imagine their daily routine and future in the home they want to purchase.
5) Can't buy what they can't see:
Allow Appointment-Only showings or a lockbox to allow buyers to view the home before placing an offer. When you make it difficult for people to see your property, then the chances of a sale at the price you want could drop considerably.
6) Out of Your Hands:
It's not always the seller's fault that a house isn't selling. The market changes with in time and buyers tend to disappear. Perhaps new construction homes are opening up nearby and taking all the attention your home could have gotten.
Selling your home takes necessary adjustments to make buyers place an offer on your home in today's market.
For a FREE Competitive Market Analysis in your neighborhood, click here to fill out the your request. A report will be given within minutes. Or give me a call at (818) 384-5928.
Source: Realtor.com
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