Real estate agent tips provided as a service by Sandee Conley of HB Land and Homes in Palmdale and Lancaster California
Home buyers and sellers - please visit www.housebrix.com or www.real-estate-palmdale.com or call 1-877-SCONLEY for more information on buying or selling a home ANYWHERE in the Antelope Valley and surrounding areas.

Acton - Adelanto - Agua Dulce - Ana Verde Hills - Antelope Acres - Antelope Valley - Canyon Country - Juniper Hills - Lake Elizabeth - Lake Hughes - Lake Los Angeles - Lancaster - Leona Valley - Littlerock - Llano - Palmdale - Pearblossom - Quartz Hill - Rancho Vista - Santa Clarita - Shadow Acres - White Fence Farms - Barrel Springs - Rosamond Please visit www.housebrix.com or www.real-estate-palmdale.com for more information

Six reasons your home isn't selling
If your home has sat on the market week after week and buyers' agents aren't bringing in offers, here are some reasons why your home is still sitting on the market.

Here are the six most common reasons why homes don't sell:

1. Your home is overpriced

Overpricing is the most common reason homes don't sell. When you ask an unrealistic price, it sets in motion a process that often works against you. Here's why:

When you decide to sell your home, setting your asking price is probably the most important decision to be made. Depending on how a buyer finds your home, price is often the first thing he or she sees, and many homes are passed over by prospective buyers as not being in their appropriate and affordable price range.  These homes are not even given a chance to be shown.  Your asking price is the first impression that prospective buyers have of your home and, if they compare what you are offering with houses in the same price range that have been priced right, what are they going to see?   A lot MORE for their money. The fact is that buyers, not sellers, ultimately determine the market value of a home. You can ask for the moon and set your listing price well above comparable properties in your neighborhood, but at some point it will be up to you, the seller, to accept what the buyer realistically thinks your home is worth.  It is unwise to assume that a higher asking price will ultimately net you a higher selling price. In fact, this assumption will work in reverse if you're not paying attention to what the market is telling you.

Most real estate agents, and hence most qualified buyers, will see your new listing within 30 days. If it is overpriced by as little as 5%, it will be duly noted and interest in your property will wane, especially if you show no intention of coming off your asking price. You likely already priced out buyers who might have qualified for financing at a more reasonable price. Even if you manage to find a buyer at your inflated asking price, the property may not appraise at that figure and the financing will fall apart.  Other agents often use overpriced properties to help sell their own listings.

If you have a house that really should be priced at $200,000 and you've got it listed at $260,000, you are trying to compete against homes that really are worth close to $300,000 and all of a sudden your home really is not competing well - you want to compete with what is available out there among homes similar to yours.  If your home remains on the market for too long, agents and buyers may begin to wonder if there are other, perhaps more serious, reasons why it isn't selling.  The house becomes stale and people are aware that it has been on the market a long time and agents just stop showing it.  REMEMBER: Find the comparable sale price - not the price other homes are listed at, but what they're selling at - and find out what they sold for in the last six months.  You'll have to become realistic about your home: your upgraded carpet, hand-crafted cabinetry and bigger yard don't automatically boost your asking price.


2. Your home doesn't 'show' well
Your home is competing against brand new houses in pristine subdivisions with their attractive prices, builder and mortgage incentives and community amenities. The two best things you can spend your money on are paint and cleaning. The rule of thumb is, you have exactly six seconds to impress a drive-by house hunter. Make those seconds count.   Even the best old house needs a little makeover if it hopes to attract a qualified buyer.

The good news is most of the work will be cosmetic and relatively inexpensive: a new coat of paint, a few attractive window boxes, a thorough cleaning of floors and carpets.  The place may look good enough for a buyer to consider. Most buyers will reject properties that look cluttered, lack cleanliness or give off an odor and sellers can end up losing thousands of dollars because their homes are just not clean enough to sell for top dollar. Odors must be eliminated - you may not notice the smell, but the buyers will! Most agents have a difficult time communicating to their sellers about odor and home cleanliness because they don't want to appear to be rude or offensive.  But any agent who doesn't let the seller know that the home isn't up to par is putting the seller at a disadvantage - the goal here is to get as much for the home as possible in the quickest amount of time and the only way to do that is by being up front but still respectful.

A good real estate agent can advise you on where your time and money are best spent.   Price and condition are two things that the seller can do something about and the best agents always give advice on how to make your home stand out and show well.  Paint is probably a seller's best friend because it makes things smell fresh and look fresh. If it's time to paint, it's time to paint. It's the best return on investment.


3. You're in a bad location
Nothing has a greater effect on your home's value than its location. Your home might be worth a king's ransom were it located in Palm Beach, Aspen or San Francisco. It might even jump thousands in value just two streets over in the next (and far superior) school district.

The point is, location rules in real estate.

If your home's location is less than desirable, your options are somewhat limited. A good real estate agent will do his or her best to help you accentuate the positive and eliminate the negative of your circumstances, say by using foliage to screen off offensive adjoining properties or dampen traffic noise.

The best way to compensate for a poor location is to reduce your asking price or offer attractive incentives such as seller financing or a lease option with rent credit.


4. Lack of Visibility
High visibility is your ultimate goal. Marketing your house to potential buyers is the only way to get it sold. A homemade sign on poster board doesn't quite do the trick. There are many ways to advertise a house for sale. The possibilities include the internet, home buyers' magazines, direct mailings, home relocation packets, flyers, open houses, the Multiple Listings Service and networking to other real estate agents. Your agent should take care of showing your property to potential buyers and monitoring any offers. You will need to keep the house showplace-ready every day it's on the market for sale.

Do NOT overprice your home - you want to get as many buyers as possible to walk through and see it. Your best choice is always to hire an agent who works FULL TIME as opposed to one who does not. A full time agent is a necessity.


5. You are battling competition or market conditions
You have heard the terms "buyer's market" and "seller's market." In real estate, market conditions are affected by any number of external forces, some of them predictable (the weather), some of them unpredictable (the local economy, interest rates, public optimism or pessimism).

In a "hot" or seller's market, homes go fast. Inventory (homes on the market) may be low, meaning less competition for you. Chances are better that you will get your asking price in a hot market; in fact, it is not uncommon to even be offered more than your listing price.

But in a "flat," "cold" or buyer's market, sales slow to a trickle, inventories grow and buyers can find bargains, especially when they know the seller is motivated (i.e., paying on two mortgages).

If you're trying to sell in a flat market, you're not only competing against all that vacant new construction, but against rentals as well. In this case, be prepared to settle for less than top dollar, or wait to sell until the pendulum swings once again in your favor.


6. You have ineffective marketing
You'll need a multilevel marketing plan that includes listing tours for area agents, strong internet presence, newspaper and even TV ads, weekend open houses, listing fliers and placements in local real estate publications.

Computers and the Internet have changed the face of real estate. According to the National Association of Realtors, today more than one-third of all home buyers use the Internet for house hunting. The best real estate agents are computer-savvy.


FINAL THOUGHT: In A Boom Market, What Does Properly Priced Mean?
In a market where demand is strong and it has become more difficult to figure out how much buyers are willing to spend, how do real estate agents determine the right asking price for a house?  It has never been an exact science. These days, agents often find themselves starting at a higher price than is borne out by the facts and go from there.

Supply and demand, of course, dictate asking price. Obviously, if the supply is low, the asking price will have to be adjusted upward to meet it. In general, though, the asking price is a balance obtained by considering a neighborhood and the sale prices of comparable houses within the context of market conditions.

Demand in some areas of the country is so strong that agents put up a number and someone pays it because the buyer fears that the asking price will be higher next week. Out-of-town investors often help to further inflate prices.  

In a normal market, agents should be able to take comparable sales and come up with something that looks almost like an appraisal, with all the pluses and minuses.

Now, many agents look at the comparables and the competition to see how the house stacks up against the others on the market. Then they will tell the seller that they'll look at the price again after two weeks of good marketing and re-evaluate it.

If there are no second showings or offers after two weeks, the asking price is probably too high.

How the property looks, its size and location are major factors in determining asking price. Sometimes, though, the house has features that are so special that agents adjust the asking price upward after looking at comparable sales over the last six months to a year.

Determining prices for new construction is totally different, because the seller is the builder.  First, the builder determines the construction costs and keeps that number to the side. Then the builder checks out what the competition is doing. This means considering the features that the builder offers and the competition doesn't, the square footage and the builder's specifications.

Different houses are priced based on type versus square footage and features. After coming up with a sale price, construction costs are factored in to make sure the builder is making the profit he expects.

Marketing a model home is a snap compared with marketing an existing home, because the builder is in control of the situation.

With existing homes, the houses reflect the tastes of the sellers, which may not be what most buyers are interested in.

A seller's "taste" can be a plus or a minus. If a buyer wants hardwood floors and sees that the seller has replaced them with a less appropriate and too personal a choice, then there is a problem.

Curb appeal and amenities all contribute to pricing. Buyers shop in price increments based on what they think they should be getting. If the asking price is outside the increment, the house will sit. If a buyer knows that he will get a three-car garage in the $300,000 price range and sees a house at $275,000 with the three-car garage, chances are the buyer will want to make an offer.

This site is informational only. No representation is made or warranty given as to its content. Content deemed reliable but not guaranteed and should be independently verified. User assumes all risk of use.  Site owner and affiliates assume no responsibility or liability for any loss, delay or otherwise resulting from such use and are held harmless. Properties may become unavailable for ANY reason.  This site page is a compilation of terms and opinions from different sources most commonly used and found in the real estate, mortgage and construction industries. This publication has been created to provide basic overview information with regard to these industries, and while generic, this information may not be applicable to all jurisdictions.  If legal advice or other expert assistance is required or needed, the services of the appropriate professional should be sought and you should not rely on the information found herein. Please notify site owner of any copyright infringement that you believe has occured so that site owner may make full and remedial investigation. Please leave the site now if you do not agree to the conditions of use.  Thank you.