Why Your House is Still on the Market After 90 Days and What to do About it
August 18th, 2008 categories: Real Estate News, Selling San Francisco
Your house is still sitting on the market for one reason and one reason only. Price!
Any property will sell at the right price.
“But I need $____. I cannot sell below that price.”
I’m really sorry to break the news to you, but that is too bad. Unfortunately, the buyers do not care, and will not pay a premium because you need the money. Put yourself in the buyers shoes. If there were two houses that were exactly the same, and one was cheaper than the other, which one would you put an offer on? It’s that simple. It comes down to the numbers. Your home can have a number of problems, but it will sell at the right price. You have to take into account the condition, the area, the upgrades, check out the comparables, and price your property at a price that will attract several buyers. If you absolutely cannot go below a price that your home is not selling at, then take your home off of the market. You will save yourself a lot of time and hassle.
The Dangers of Overpricing a Property
- If your property is overpriced, it will be used to help sell the other properties in your neighborhood.
- Most potential buyers will view your home right when it comes on the market. If you overprice, less people will view your home, and it will become “stale.” Realtors won’t show it, and will take their buyers to better priced homes. Buyers will not have it on their list of homes to view due to the high price.
- You lose that frenzy that comes with initially pricing your home fairly. If your home is the lowest priced home in the area, buyers will see that value, and you will get multiple offers.
- If you consistently drop your price over time, buyers will wonder what is wrong with the property. It will also appear that you, the seller, are desperate to sell and will take a very low price.
The Relationship Between Time on the Market and Selling Price
Kudos to Amy from REMAX in Cincinnati for this graph. As you can see, the longer your property sits on the market, the less you will get for your home.
Do not make the mistake of thinking that you will test the market with a higher price. It is a vicious hole that you will dig for yourself. If your Realtor is suggesting a price that is lower than what you feel comfortable with, keep an open mind. If his or her price is based on hard evidence that is right in front of you, listen to your Realtor. Remember, the more you sell your house for, the higher our paycheck is, so we are not telling you to sell your house for less for our own good. It is our job to do what is in your best interest, and to obtain the highest possible price for your home. So, if this information posted here speaks to your situation, pick up the phone, call your Realtor, and get that price lowered!
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Very good post and I am feeling the same pain on the east coast. I guess the good part in most cases is that the seller understands this reality and is understanding when the low offers keep coming in. I have several metrowest Boston listings where the sellers can’t (won’t) lower the price to be upside down, and they might just have to stay another couple years. As their Realtor, part of me feels like I am negotiating with them myself, and part of my job is to sell them on losing the money now instead of losing more later. We always have that discount on the Buying end, right? It’s a sales environment for “professionals”. Good post, I will visit often.