08/03/2017 by Deb Federico
Home Not Selling In A Seller’s Market? 4 insights
I’m sure you heard the good news! It’s a seller’s market!
Actually that has been the sentiment for a while now. In my area of Southern New Hampshire (Hillsborough and Rockingham County) the average days on the market for 2 and 3 bedroom single family homes was *47 days and for 4 bedrooms *69 days respectfully. So what exactly is a seller’s market? A seller’s market is when the demand for homes outweighs the inventory on the market or supply. So if we are in a seller’s market why would some homes remain on the market far longer than their competition?
You want how much???! This truly is the biggest reason a home stays on the market longer than its competition. You may think that it’s priced in line with similar homes but you need to dig deeper.
- What kind of market is your town in?
- What time of year are you listing?
- What is the condition of your home in comparison to other homes?
- Are you in an established neighborhood or on a main street?
- Is there an airport near your home or a park?
Choosing to price your home based on emotions or the opinions of, well meaning, friends and family will not get it sold. Realtors consider many factors when creating a pricing strategy for your home and let me be clear, the value of the home is only worth what a buyer is willing to pay for it, so any pricing strategy has to have some flexibilty in it.
The other main consideration is the appraisal. If a buyer is looking to take a loan out to purchase your home, than the appraiser, who represents the buyer’s lender, has the final say. Appraisers do not price homes arbitrarily. The most common method is to look at recent sales of similar properties. If your home doesn’t appraise for the purchase price than your deal could fall through or you will need to prepare yourself for an additional round of negotiations. Good REALTORS know this and will not encourage you to overprice your home.
If your confident the price of your home is in line with the competition and your still not getting anyone to place an offer it’s time to take another look at your home. If your furnace has passed its life expectancy 10 years ago, your roof is growing moss, you never did investigate that stain in the bathroom ceiling and you wouldn’t dream of leaning on your deck railing for fear you will fall into the yard, you can bet the buyer will take that into account when comparing your home to the condition and price of other homes they have seen.
Very often sellers have a hard time looking at their home objectively. Homeowner become blind to maintenance problems that they have lived with for years. All the mounting problems need to be resolved for your health as well as the value and appeal of your property. Buyers usually estimate these fixes at a much higher cost than the reality which could leave your home out of the running.
Upgrading your home can help your home stand out especially if it is a well thought out kitchen or bathroom renovation but not all renovations are equal. A two bedroom house with the basement renovated to make an additional two bedrooms is not going to compete with a four bedroom (all bedrooms above ground) colonial, and in the case of say…renovating the garage into your brother in-laws bachelor pad, it can actually decrease the value of your home and be less appealing to buyers. So it may be time for him to move out and add the garage door back on.
I have been blessed to have met some incredible people while working in this field. Some of my clients have become my friends. Through all the transactions I have been a part of there is an element of stress. Some stress is expected, moving yourself or a family out of one location and into another is a life disrupter for sure but sometimes stress can cause irrationality keeping otherwise sane human beings digging in their heels at a difference of $1000. The longer the home stays on the market the more buyers will devalue the property, the more bills you will have to pay living there and the more showings you will have to contend with. Keeping a spotless house and finding something to do with the kids and/or pets for an hour or more each showing will only serve to increase your stress.
Putting an effort in to declutter, complete repairs before you place the home on the market and being flexible with showings and offers will help minimize your stress and get your house sold sooner.
Keep in mind that buyers are making a transition too and are most likely under the same pressure you are. We are all on this journey together.
*Statistical information from the New England Real Estate Network for the period of January 1, 2017 through July 31, 2017.