Reason 1) -The marketing is incomplete or ineffective (Agent)
Not all real estate agents are alike and unfortunately, some do a minimal or ineffective job in marketing the property once they’ve obtained the listing.
- I often research properties as part of my commitment to my craft. I’m frequently surprised by the number of incomplete property descriptions, lack of multiple attractive photos, and many times, just incorrect or incomplete information reported in the listing.
- In most situations, once a listing is entered onto the internet and the REIWA website it will appear on many sites on the internet, as well as the agents own sites and national real estate sites they may participate in.
- Those properties with limited information, or worse, just a few photos or unflattering photos are eliminated by buyers and their agents without the buyer ever setting foot on the property.
- IT IS POSSIBLE to overdo it as well. Over the top, excessively verbose or flowery descriptions can be as ineffective as some of the earlier sins described. Sophisticated buyers don’t want to be patronised with excessive real estate cliche’s.
Sometimes the marketing is not hitting the right intended target Buyer. If you were fishing for Barramundi, it would be an entirely different strategy to fishing for Trout. Understanding the target buyer is a pretty good place to start.
While a very small percentage of homes are bought “sight unseen,” the general rule is if the buyer doesn’t step inside your home, they won’t be buying it.
- There are four groups of people your property must appeal to: Agents, local buyers, out-of-area buyers as well as overseas buyers.
- All four are influenced by the visual appeal online of your property. If your property’s online and printed marketing isn’t appealing, you will have no or few physical showings.
- ACCESS- once the marketing has done it’s job, make sure the Agent and Buyer have reasonable access. That is desirably (but not always) with lots of prior notice.
Reason 2) – The home shows less than at it’s optimum potential (“As is).
Let’s face it; your home has to compete with all the shiny model homes going up in every corner of the city.
- You are competing with professional decorators and landscapers who are experts at creating emotional appeal.
- These model homes don’t have real families living in them while being on the market.
- A good cleaning, de-cluttering and cosmetic facelift is pretty inexpensive compared to the return in a higher sales price and faster sales time.
- Sparkling windows, kitchens and bathrooms, professionally cleaned carpets and fresh paint make a world of difference.
- Curb appeal from an attractively-maintained yard and an inviting front door doesn’t require a professional or large amounts of money.
Reason 3) – The property is in a less desirable location (Buyer opinion or Feedback).
This is one thing that can’t be changed. (Often the price will or should reflect the location…)
A good real estate agent will:
- Be able to maximize the positive aspects of your property while trying to minimize the negatives.
- Target Buyers that may prefer access, convenience, or live in a similar set up right now.
- It may be possible to screen an adjacent property with landscaping either to lessen the visual impact or the sound impact of a busy street.
If your home is located in a less desirable school zone or close to perceived nuisances, busy Roads, the best way to compensate is usually to reduce the asking/sales price.
- All real estate markets are cyclical, sometimes hot, sometimes cold, and sometimes just in balance.
- They are affected by any number of things that you have no control over, such as interest rates, the economy, weather, national or local disasters, consumer confidence, and sometimes the time of year, such as the winter holidays.
If there are many buyers for a type of property and there is a limited supply, the market will be faster and sellers won’t need to pay as much attention to condition, marketing and proper pricing.
- If there is a large supply of inventory, with little buyer interest, homes will languish on the market and buyers will choose the best of the available inventory.
- That’s the time that paying attention to the items mentioned above makes a real difference in terms of how long it will take to sell your property and ultimately the price you’ll receive.
Reason 5) The home is overly optimistically priced.
Most property owners perceive their home is “nicer” or “better.” That’s quite normal.
It is referred to as “The Endowment Effect”.
- I’ve been told many times about specific features that “should” make the home be worth more money than comparable homes.
- No matter how much you may appreciate your home and its particular special features, the buyers ultimately set the price by what they are willing to pay for the property.
- Overpricing, either by you or by an agent willing to suggest a higher price in order to obtain the listing, begins a chain of events that often works against you.
- After those important first few weeks on the market, the only buyers who will see your property are those that are new to the market, and your property will be labelled as “overpriced.” Buyers and their agents always look for “days on market” when searching the REIWA member website listings.
- Day-old bread, leftovers, and overstocks are always discounted.
- Every property will sell, if it is priced properly.
- I have said it all of my career, the way to get the highest price is to price the property correctly at current fair market value.
- Buyers who immediately see value, who love a home, will have more fear of missing out, than of snatching a bargain.
- This can only occur when asking price is near or at perceived current market value.
Sometimes a major RESET is required, or a PLAN B/ PLAN C/ PLAN D.
Please feel free to talk to me about anything real estate.
Thank you and see you in the market place.