Tuesday, May 28, 2013

Market Update! And WHY your home may not be selling in today's market!

Update from some of my most trusted lenders today--rates are rising.  They are telling me the recession is over....people are running from the bond markets back to the stock market!  The past two weeks have been hard on the mortgage business since they have seen about a 1/2% increase...Ouch!  Economists were predicting a stable rate environment, but half of a percent is significant to borrowers.  So, talk to your lenders if you are interested in a new home loan, and don't hesitate to contact me any questions!

Why isn't your home selling?

For the most part there is a pretty short list of reasons that cause most slow-to-sell homes to linger on the market. You’ve probably heard at least a couple of them before, maybe you just need to hear it few times, or hear it from different people. But make no mistake if your home isn't selling  you need to make some changes so that you are not in the situation of your home sale is stuck - and your life plans stuck with it.

1.  You’re listing price is too-high. If your home has been sitting on the market for longer than average days on the market, make no mistakte....THE MARKET is speaking and it’s saying: the price is too high vis-a-vis the current condition of the market and the property.  Period.

There are only three variables in this equation - which is helpful, because it means there are really only three ways to fix this situation:

  • change the condition of your property
  • wait until your market conditions change to support a higher price
  • change the list price.

That’s it. That’s all there really is. For most sellers the simplest, most sensible of these three variables is to modify is the list price. Pricing your home is not an exact science. You take variables into consideration while comparing your home to those that have sold, then you try for the best possible price on list......AND THEN LISTEN to the market for feedback.  If you home is in good condition, is well-staged for showings, and other homes nearby are flying off the market.  The fact that you don’t want to hear that your home is overpriced doesn’t mean it’s not the truth. 

Today’s market is ascending in most areas, which simply means that prices are on the rise. Some sellers are waiting to list their homes, hoping that prices will be higher in the years to come. Economist note this is a risk due to the potential for interest rates to rise. So if you want or need to sell your home sooner than later, or you are hoping to sell in time to buy your next home before prices and interest rates rise much higher, holding out for a higher price probably doesn’t make sense. 

In fact, your resistance to making a necessary price cut could backfire. Buyers often keep their eye on overpriced but otherwise nice homes, waiting until they suspect the seller’s desperation will make them more receptive to a lowball offer. 


Jan and I strive to analyze your home against recent sold homes and your current competition to start your home sale at the best possible price! 

2.  Your home is not be fully exposed to the market.  So the truth that the market has spoken on the matter of overpricing does have one caveat: it assumes the market has actually been exposed to your home.  If your home’s marketing plan has been limited to that red-and-black For Sale sign you got at the hardware store and stuck in the lawn, chances are good that your home is lagging because your area’s community of buyers and brokers have no idea it is on the market!  

Other common conditions of home sale-preventing underexposure include:

  • Homes that are not listed on the area’s Multiple Listing Service or MLS
  • Homes that are not listed on major real estate search engines, like Trulia
  • Homes that are very difficult to show or are rarely made available for viewing
  • Homes that are listed online with no, few or poor quality property photos.

Jan and I always hire a professional photographer, so quality photos, check.

Great exposure, check!
We have your home listed on every major home site from our local MLS to Realtor.com to Trulia to Zillow to Coldwell Banker to JanBenadum.com and you'll have your own personal home page that we use to market your home to other real estate agents, our past clients, and buyers searching the internet. 

We always suggest you show your home upon request, so that it won't be your home for long!
If you haven't engaged the services of a professional listing agent, give us call, we'd love to discuss helping you with a plan to sell your home. 

3.  Your home has a glaring issue that needs resolving.
  Many times, a big condition issue can cause a home to sit on the market unless and until the seller either (a) fixes the issue OR reduces the price so low that a buyer thinks the bargain is worth the hassle.  Some situations are too costly for a seller to fix (e.g., foundation needs replacing), and others are not fix-able (high tension towers or that nuclear power plant next door!).  In these situations, reducing the price might be the only resolution.

But other issues can be changed, but many sellers don't want to hear them.  You might love the hot pink or bright green room with the zebra stripe bedding and accents! Or the colored laminate counter tops, and oh there are some damaged areas, like where your daughter placed the hot pizza pan right out of the oven directly onto the counter??? Oh well! And you love the grass green or powder blue sculpted  
wall-to-wall carpet or the “rustic” look of the weathered paint, fences and trims on the exterior.  Or maybe you don’t love them anymore either, but you think buyers should just look past these issues.  

Your home’s slowness to move is the market's wake-call to you.  The average buyers’ tastes might be different from yours. But in our market area most buyers don’t have to look past issues in your home, they can find a home that is move-in ready.  So, to concern yourself about what buyers “should” be willing to do is to live in a fantasy world - and as long as you’re there, your home won’t move in real life. 

4.  You’re not really ready to move on.  If none of your agent’s advice about how to shift your home’s sale makes sense, if everything on this list strikes you as outrageous, if even your friends’ and family members’ urgings to cut the list price or make some changes to your home makes you think the whole world must be crazy, ask yourself this question:  are you really, truly ready to move on?  

I've had a few sellers over the years that truly didn't want to sell for various reasons from not wanting to leave their beloved community, family and friends to move to the new location of a spouse's job.....to a divorce where one party was not willing to let go of the family home and memories, and some other odd circumstances tossed in there too! So, if you find yourself in a situation where your head is telling you that cutting the price is the right thing to do, but  your heart makes you do everything possible to keep the home from being shown, consider whether you are truly ready to move on. Just take the home off of the market if you really don't want to sell it. 



IF YOU HAVE QUESTIONS ABOUT SELLING YOUR HOME, BUYING OR BUILDING A NEW ONE, DON'T HESITATE TO CALL, TEXT OR EMAIL ME. 614-657-2005

My promise to my clients: I try to always remember what it is like to walk into this incredibly complex world of buying and selling with little or no knowledge of how the process works. I know that behind the door of your home and in your life there is much more going on than just your real estate transaction. I work with each person, not the house, and with the whole person, not just the issues surrounding the transaction. When I attempt to put myself in your shoes and contemplate what you are dealing with I am most effective.
The Benadum Team

Amy Bumpus

Straight Talk—Always