Top 5 Reasons homes don’t sell in Louisville.
In today’s Louisville real estate market sellers are more confused than ever before. The way homeowners sold their homes in the past are not getting the desired results they once did. So the question comes to mind why do some homes sell while seemingly nice homes sit. Here are some of the main factors that determine whether a seller is off to greener pastures or left scratching their head.
Over Pricing
This has to be on of the top mistakes made by Louisville sellers. Everyone including myself, wants to sell their home and walk away with a tidy profit. This was the norm a couple of years ago during the real estate boom. Sellers have been reluctant to face the shifted market we find ourselves in.
Here are a few things to remember when pricing your home in a buyers market. Buyers have expanded their search areas. They are willing to look at more areas in hopes that a bargain is around the next corner. So we not only need to be competitive in our neighborhood, but we also need to be competitive in a larger area such as a specific real estate area or zip code.
When looking at homes like yours that have sold (comparables) to determine fair market value, you will need to pay most attention to recent sales. Buyers are not going to give any weight to the fact that a home like yours sold for $200,000 in 2008 when there are several like yours for sale right now for $190,000. The bottom line is buyers need to see the value of your property compared to the best priced homes on the market. Remember the law of supply and demand: the greater demand on a product the higher price it will bring.
When sellers price their home at an obvious value, buyers will recognize it creating a since of urgency and generate an obvious demand for the property. This brings fast offers often at full price. In the case of multiple offers, above list price offers are not uncommon. So, price it right and let them fight.
Condition
The impression I have seen Louisville buyers have is that beautifully decorated, well maintained homes are everywhere and they are all just sitting there. The truth of the matter is the homes that sell fastest are the ones that are in the best condition. We can break this down into two main areas.
The first area is deferred maintenance. Today’s buyers want a home that is move in ready. They don’t want an allowance for carpet. They don’t want to think about it. Most every home has a total home inspection that will uncover most defect or deferred maintenance . Before you put your home on the market get out your to do list and get busy. It’s better to do the repairs upfront where you can see a return on your investment than to have to do it after a negative home inspection or appraisal.
The second area is home staging. The average staged home sells within 35 days and it averages 6% more on the sell price. The investment you make in an Accredited Home Stager will always be less than your first price reduction. I offer a professional staging consultation with an Accredited Home Stager on all my listing. Out of all the things we will talk about condition is the only area that actually adds value because the product has improved.
Terms
When I speak of terms I’m talking about the items you will be negotiable on. Some of the items of contention can be possession of the property by the new home owner and sellers paying closing costs on behalf of the buyer. I have seen sellers absolutely not want to pay some of the buyers closing cost. In those cases I reminded my clients that it doesn’t matter what we give the buyer in closing costs, what we need to be concerned with is the amount of the proceeds at closing.
Another way a seller can improve their standing in the market is by offering a home warranty for the buyer. This typically will help the buyer feel they have made a more sound decision. It can also help with the home inspection process by helping the buyer to over look some of the minor imperfections that homes may have with the added security of a home warranty that will cover the home after the purchase.
Availability
This is simple but some times over looked. When you put your home on the market it needs to be ready to show with as little notice as possible. If an agent calls to show a property and the seller asks that the potential buyer reschedules at a more convenient time you can bet your bottom dollar that your home will never be shown. There are to many homes out there for a buyer to choose from for them to put up with an unaccommodating seller.
Another way I have seen this play out is when the seller asks that their agent be present at all showings or worst, the sellers themselves have to be there. Louisville home buyers like to look at properties anonymously. If the agent or the home owner prevent that, rest assured the chances of you getting an offer are very slim.
Exposure
You can have the best home in excellent condition and at an incredible value, but if now one knows about it what’s going to happen? You got it, NOTHING! Marketing your home is essential to you getting top dollar for your home. A National Association of Realtors study reveals that homes sold without the help of a Realtor sold for 16% less than those sold by Realtors. Some sellers think they can sell it themselves and pocket the commission. This sounds great and I’m all about saving money. But are you really saving that money if your home is selling for 16% less? It’s all about how much money you can put in your pocket.
The way Realtors are able to net top dollar is through exposure. The Greater Louisville Association of Realtors has over 4,000 active Realtors. So when you list your home with a Realtor not only is the Realtor trying to sell your home but the other 4,000 agents are trying to sell it as well.
Another way your home can get exposure is the internet. Over 84% of Louisville home buyers started their search on line. This is a huge market that cannot be overlooked or underestimated.
I hope this has been informative. As I was compiling this list I could think of various other reasons why homes don’t sell. But I think these are universal and generic enough to help the average Louisville seller.
Recently Sold Homes from Trulia
Top 5 Reasons homes don’t sell in Louisville
Posted by: Shawn Hogle | Comments (0)Top 5 Reasons homes don’t sell in Louisville.
In today’s Louisville real estate market sellers are more confused than ever before. The way homeowners sold their homes in the past are not getting the desired results they once did. So the question comes to mind why do some homes sell while seemingly nice homes sit. Here are some of the main factors that determine whether a seller is off to greener pastures or left scratching their head.
Over Pricing
This has to be on of the top mistakes made by Louisville sellers. Everyone including myself, wants to sell their home and walk away with a tidy profit. This was the norm a couple of years ago during the real estate boom. Sellers have been reluctant to face the shifted market we find ourselves in.
Here are a few things to remember when pricing your home in a buyers market. Buyers have expanded their search areas. They are willing to look at more areas in hopes that a bargain is around the next corner. So we not only need to be competitive in our neighborhood, but we also need to be competitive in a larger area such as a specific real estate area or zip code.
When looking at homes like yours that have sold (comparables) to determine fair market value, you will need to pay most attention to recent sales. Buyers are not going to give any weight to the fact that a home like yours sold for $200,000 in 2008 when there are several like yours for sale right now for $190,000. The bottom line is buyers need to see the value of your property compared to the best priced homes on the market. Remember the law of supply and demand: the greater demand on a product the higher price it will bring.
When sellers price their home at an obvious value, buyers will recognize it creating a since of urgency and generate an obvious demand for the property. This brings fast offers often at full price. In the case of multiple offers, above list price offers are not uncommon. So, price it right and let them fight.
Condition
The impression I have seen Louisville buyers have is that beautifully decorated, well maintained homes are everywhere and they are all just sitting there. The truth of the matter is the homes that sell fastest are the ones that are in the best condition. We can break this down into two main areas.
The first area is deferred maintenance. Today’s buyers want a home that is move in ready. They don’t want an allowance for carpet. They don’t want to think about it. Most every home has a total home inspection that will uncover most defect or deferred maintenance . Before you put your home on the market get out your to do list and get busy. It’s better to do the repairs upfront where you can see a return on your investment than to have to do it after a negative home inspection or appraisal.
The second area is home staging. The average staged home sells within 35 days and it averages 6% more on the sell price. The investment you make in an Accredited Home Stager will always be less than your first price reduction. I offer a professional staging consultation with an Accredited Home Stager on all my listing. Out of all the things we will talk about condition is the only area that actually adds value because the product has improved.
Terms
When I speak of terms I’m talking about the items you will be negotiable on. Some of the items of contention can be possession of the property by the new home owner and sellers paying closing costs on behalf of the buyer. I have seen sellers absolutely not want to pay some of the buyers closing cost. In those cases I reminded my clients that it doesn’t matter what we give the buyer in closing costs, what we need to be concerned with is the amount of the proceeds at closing.
Another way a seller can improve their standing in the market is by offering a home warranty for the buyer. This typically will help the buyer feel they have made a more sound decision. It can also help with the home inspection process by helping the buyer to over look some of the minor imperfections that homes may have with the added security of a home warranty that will cover the home after the purchase.
Availability
This is simple but some times over looked. When you put your home on the market it needs to be ready to show with as little notice as possible. If an agent calls to show a property and the seller asks that the potential buyer reschedules at a more convenient time you can bet your bottom dollar that your home will never be shown. There are to many homes out there for a buyer to choose from for them to put up with an unaccommodating seller.
Another way I have seen this play out is when the seller asks that their agent be present at all showings or worst, the sellers themselves have to be there. Louisville home buyers like to look at properties anonymously. If the agent or the home owner prevent that, rest assured the chances of you getting an offer are very slim.
Exposure
You can have the best home in excellent condition and at an incredible value, but if now one knows about it what’s going to happen? You got it, NOTHING! Marketing your home is essential to you getting top dollar for your home. A National Association of Realtors study reveals that homes sold without the help of a Realtor sold for 16% less than those sold by Realtors. Some sellers think they can sell it themselves and pocket the commission. This sounds great and I’m all about saving money. But are you really saving that money if your home is selling for 16% less? It’s all about how much money you can put in your pocket.
The way Realtors are able to net top dollar is through exposure. The Greater Louisville Association of Realtors has over 4,000 active Realtors. So when you list your home with a Realtor not only is the Realtor trying to sell your home but the other 4,000 agents are trying to sell it as well.
Another way your home can get exposure is the internet. Over 84% of Louisville home buyers started their search on line. This is a huge market that cannot be overlooked or underestimated.
I hope this has been informative. As I was compiling this list I could think of various other reasons why homes don’t sell. But I think these are universal and generic enough to help the average Louisville seller.