Three Tips to Make Sure Your Property Becomes SOLD

Why do homes fail to sell?

It’s actually more common to have a home fall off the market and fail to sell than you would think. In San Luis Obispo County in 2021 there were 4,228 residential homes that sold and 583 that expired or came off the market after failing to sell. That means about 12% of all the homes listed in 2021 failed to sell the first time, so if you find yourself in this group do not fret. This happens to lots of people, and if you still want to sell then these three tips can help make that possible. In this article, we will explore the 3 most common reasons properties fail to sell and what you can do about it to make sure this doesn’t happen to you.

Reason #3: Access

If a property is inaccessible it will make it much more difficult to sell. Common reasons a property doesn’t sell are because of access issues such as difficult tenants, specific showing restrictions, easement issues, or distance from main veins of transportation. For example, if a seller says you can only show this listing on Tuesday from 2-3PM and on Thursdays from 1-2PM you will be hard pressed to find a buyer that can make those times work on their schedule. Another common reason sellers have a difficult time having their property be shown is because of their pets. It can be inconvenient to make arrangements for your animals during a sale. You must think about convenience. This is the information age. Buyers want access and information and they want it right now or they will move on. We understand that this may pose a little extra work on the seller’s part, but if this isn’t handled well it can cost you tens of thousands of dollars on the sale. If you want to sell your property for top dollar you will have to be willing to do what it takes, and that includes making the property available for showings.

Reason #2: The Agent

There are over 4,000 agents on the Central Coast in 2021 with only 4,228 homes sold. This means the average agent does 1-2 deals per year. Some licensed agents do 0 deals per year, and 87% of agents are out of the business within the first 5 years. If all agents were created equally then these numbers would tell a different story. For these reasons, when it comes to selecting your agent for the job you want to make sure that you pick someone who is active in the business. 

Signs they are active in the business are that they are a full time agent, have done multiple deals over the past few months, and have great online reviews. They should have a comprehensive marketing plan with professional photography and targeted lead generation at a minimum. If access is an issue as mentioned above, then an interactive virtual tour or video walk through may be able to help motivate a buyer to pursue your property. 

The agent you hire must also negotiate on your behalf. You want to make sure that they will fight for you at the negotiating table. You also want an agent who has a database of buyers. All of this will help you sell quicker and for more money.

Reason #1: Price

Most importantly, you must price the listing right. There’s a saying in real estate: Price it High, Watch it Die. You have to price it correctly to get buyers out to see your property and make an offer. In the old days you could list it high, get an offer, and go back and forth to get a price you like. In today’s market with access to technology, sellers are being held accountable. Everyone knows what homes in the area are selling for thanks to new technology and the public record. Buyers will be comparing properties’ features and benefits. How much house and land for this home at this price versus that home at that price? It all makes a difference.

Pricing strategies are an extremely important component of selling real estate. In fact, pricing is the most important factor of selling a property. You must consult with a real estate professional in your area to see what the common pricing strategies are in your area as things change as markets change. The old strategy of pricing it high to see what you get is outdated. Pricing it at market value or slightly below market value are more of the norm. 

If you price a home fairly or even a little bit lower to be competitive, you are likely to get multiple buyers interested in your house instead of just 1 or 0. With multiple buyers interested in your home you can create a bidding war, selling to the buyer who is the most motivated to purchase your home. This is important because you want to sell to a motivated buyer, not someone who will cancel on you mid-transaction.

In Conclusion

Be sure to make the right choices when selling real estate. Make sure the home is accessible and available for buyers, pick the right agent or team to represent you on the sale, and be sure to price it correctly! If you’d ever like a second opinion of value or marketing a home, please reach out to us. We are happy to be a real estate resource for you.