Why Houses Don’t Sell? Have you been spinning your wheels wondering why your home won’t sell? I specialize in buying houses in California from Stockton to Sacramento and here’s the main reason houses sit on the market forever!
Believe it or not, there are plenty of people looking to buy houses in your area. The question is what will stop them from buying yours? Answer that question and fix the problem and your house will be one of the 60% that sells right now.
Most people don’t realize that of all of the houses listed with real estate agents 40 percent do not sell within the listing period. For those sellers, it means that the problems with their house were never addressed and the buyers noticed and walked away.
I blame the real estate agents for not being honest with their clients from the beginning. We all know that the reasons houses don’t sell are a combination of the following;
• The Houses Condition and Age
• The Location
• The Pricing
• The Competition (other houses on the market)
The real estate market is one of supply and demand; the fewer houses on the market the higher the price, but when you add in condition, location, pricing, and competition – if your house is distressed or has had issues with deferred maintenance someone will notice. Related: How to Sell a Distressed House
Who Actually Sells Your House?
The real estate universe is made up of listing agents and buyer’s agents. The dirty little secret is that the listing agents are relying on buyer’s agents to sell your house. So, regardless of who your real estate agent is, the chances are that your real estate agent, the one that listed your house, will probably not be the one to actually sell your house. The average odds that the listing agent will bring the buyer is something like 1 in 10.
The truth is no matter how great the marketing plan the listing agent devises or the amount of exposure the property undergoes, unless you are targeting the right buyers, your house will NOT SELL.
Real estate agents all have a similar game plan, which usually includes holding an open house, but that rarely sells the house. Open houses are for show and work as new lead generation sources for the Realtor® to list other houses because most of the people that go to open houses are your neighbors curious about the house and the price.
It’s a Numbers Game
Because selling a house is a numbers game 40 percent of listing agents are really just buying your listing. Let me explain: they meet with you, discuss the market in your neighborhood and the condition of your house. They pretty much know that they are not going to be the one that sells your house and so their only objective is to sign a contract with you to list your house in which they will get 2.5% to 3% commission when it does sell. It is a numbers game to them.
What that really means is that they are not going to be arguing with you about the value of your house. They will present a comparative market analysis and tell you what the sales of homes have been like in the past 90 to 120 days and the price points that houses have sold for. They are going to try to list that house for the cheapest possible price they can for a fast sale and if you resist they are either going to:
• Recommend that you make repairs and updates (costing thousands of dollars) to justify the higher price
• Buy your listing by allowing it to go on the market at a higher price and let another agent deal with the problem.
In the meantime, your listing will be submitted to the local Multiple Listing Service and your house will be available for every real estate agent in the area to view. It is a powerful tool and does get 60% of the houses sold. But there is a difference between the listing price and sales price and the concessions that you’ll need to make to actually sell your house. Either way, if the house sells, you will need to pay the commission for both the listing agent and the buyer’s agent.
If the house does not sell, if you are one of the 40% of homes that make it to the vast graveyard of expired listings, then you have the privilege of paying the bills until it does sell. These are known as your real estate holding cost. They add up and they need to be factored into your cost of sale.
So What Can You Do?
My name is Peter Westbrook and I am a local real estate investor (not a real estate agent) in Stockton CA and for surrounding cities and towns. We Buy houses and we pay cash and we do not charge fees or commissions to make the purchase. We are the direct buyer so if you are looking for someone to “sell your home to”, your best bet is to call me.