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Westbrook Estates Real Estate and Community Information - Wesley Chapel, FL

Why Home Don't Sell - Part II

Jul. 31, 2007
Categorized in: Real Estate
Tagged with: why homes dont sell
 

Why Homes Don’t Sell – Part II 

In my last article I went into the three most common reasons homes do not sell. They are Price, Product (Condition of the Home) and Promotion (Marketing of the Home). 

In this article I will go into some miscellaneous items that can prevent a home from selling. This is not a complete list, however these are some of the ones that I have seen that are worth mentioning.  

1. The Listing Agent does not answer the phone or does not call the buyer’s agents back in a timely fashion. 

Buyers often call their agent and want to go see homes today, or they see a home that looks interesting while they are out seeing other homes. Their agent calls the listing agent, and if no answer or a slow callback, results in the home not being seen. 

I personally have had agents call me back more than a week after I called them. They ask if I would still like to schedule a showing and I may say, unfortunately my buyer went back home to New Jersey last week, or they purchased another home. More than once, I never had my call returned. 

2. The MLS listing says to call the seller to schedule showings. 

When a listing says call seller to schedule showings, this often through experience means an inconvenient showing. There is usually no lock box, and the appointment must be set at the seller’s convenience, not the buyers. When there are a large number of homes available to show, these do not attract anyone’s attention.  

3. Listing states that a 48 or 72 hour notice is required for all showings. 

Again the homes most likely to be shown are the ones that are convenient for the buyer to see. 

4. Listing agent or seller too restrictive for scheduling. 

Buyer’s agents often show a buyer 6 – 10 homes in a day. The buyer’s agent tries to schedule the showings the best they can. However, it is impossible to always say we will be there at 1:00 PM or exact time. We often give a timeframe of 1:00 PM2:00 PM. Some listing agents will say I’m sorry but you will have to give me an exact time or a 15 minute cushion in time, not an hour. 

The problem is let’s say there are six properties to be seen. You figure on travel time plus enough time to show each home. However let’s say you figure on 15 or 20 minutes per listing plus travel time. What happens if the buyer likes a certain home and spends 45 minutes or an hour? What if we drive up to another and the say they are not even interested in going in? Obviously, it can be impossible to stick to an accurate schedule. 

5. Seller alienates real estate agents. 

Example One: I was a listing agent, where I had a buyers agent call me and say they wanted to show my listing between the hours of 2:00 PM3:00 PM. My seller left the home before 2:00 PM and came back at 3:00 PM. At 3:10 PM the buyer’s agent came up and rang the doorbell and said sorry we are late, but unfortunately we got stuck in traffic. My seller yelled at the agent with the prospective buyer by their side.  

The buyer’s agent said he was sorry. The seller then said they could look at the home. When the seller called me and told me about this, I discussed how I had already explained that sometimes this will happen. The buyer’s agent should have called me to let me know they were running late, however the seller wants to sell the home, and this does happen. The seller told me the buyer did not appear to like the home as they spent only a couple of minutes there. I told the seller that they may have not liked the home, or it could be after you yelled at them they were too afraid to even really look at the home. I also told the seller it is unlikely the buyer would even come back even if they loved the home, and likewise it is unlikely their agent will ever consider their home for another buyer. I called the agent to apologize, but the agent was not thrilled with what had happened. I would not be surprised if that agent told at least some of the approximately 150 agents he worked with about what happened. How many of these agents would want to show this listing? 

Example Two: Recently a home in my neighborhood had been listed with another agent for six months. It did not sell and the listing expired. During the six months it was on the market I had showed the home to a couple of my buyers. They did not buy, but since I am an expert in the neighborhood I knew that the home was slightly overpriced but was not being marketed well. The owner lives in another state, so I sent them a letter saying if they decide to put their home back on the market, I would like to be considered for the job of their listing agent. I went through my successes in the neighborhood, and that I would like to discuss how I would market their home to sell.  

A few days later I received an email from the owner of the home. In it he told me that he is sick of the spam he is getting in the mail from several real estate agents. He then mentioned that he is going to report us all for spamming him with junk mail and will have us arrested. Of course there is no law about sending a letter through the postal service. He then stated that he would be happy if we all would drop dead. 

Now what do you think the chance of any of the real estate agents who received such hateful mail choosing this home to show to their buyers? Do you think that he may have hurt his chances of selling. 

6. A few last items that prevent a home from selling. These are all from personal experience 

  • Terrible curb appeal – weeds, dead grass, messy looking, etc.
  • Sloppy or dirty home
  • Cluttered home
  • Animal waste on carpets, beds or walls
  • Animals running around loose – Many buyers are afraid of dogs or cats
  • Dirty clothes all over floor
  • Filthy carpet or worn carpet
  • Offensive artwork or photos
  • Sellers sleeping while showing is going on
  • Empty wine and beer bottles all over floor
  • Fist holes in wall and doors

Some of these seem absurd, but they are real and probably happen more often than we could imagine. There are of course many more that could be listed.

 

 

 

Why Homes Don't Sell

Jul. 17, 2007
Categorized in: Real Estate
Why Homes Don’t Sell
 
With so many homes on the market, and many not selling, I am often asked why some homes sell, while others do not.
 
Real estate agents and real estate schools often say the reason homes do not sell is price. Although there is always a price where any home will sell, saying that price is the reason is an oversimplification.
 
There are three main components to getting a home sold. These include the following;
  1. The asking price
  2. Product or the condition of the home, land and anything included in the sale
  3. Promotion or the marketing plan
 
These have to be in balance for a home sale to take place. Price is almost always blamed for the home not selling, but as we will see this is only partially true.
 
If the condition of the home is as good as, or better than any of the comparable homes on the market, then the asking price should be higher than if the home is in poor condition. In this sense it is true that price is important, but often the repairs or cleaning of a home to put it into selling condition can be minimal for the home to sell at top dollar. Often the required expenditure is much less than the increased value and desirability of the home.
 
The same is true with the marketing plan. If the home is properly marketed it should sell at a higher price, and/or in a quicker timeframe and with less aggravation. This is the major reason the For Sale by Owner homes usually sell for much less than Realtor listed homes. For Sale by Owner listings usually have poor marketing and only reach a very small portion of the buyer market. Without proper marketing, the sales price is reduced.
 
The same is true with real estate agent listed homes. One Realtor may put up a sign, place the listing on the MLS and on Realtor.com, but does little extra to market the home. Another Realtor may do the same as the other Realtor, however the listing may also go onto a company website, personal websites, and many other websites such as Trulia, Craigslist, Google, Yahoo, MSN, NY Times, etc. There will also be specialized relocation marketing, and marketing for the international market.
 
So although price is usually blamed for a home not selling, this is often not the true culprit, as it can also be the condition of the home, or the marketing of the home.
 
If you happen to have a home that has not sold, do not despair. Instead interview several Realtors and ask them lots of questions on how they would market your home. Ask for their recommendations on how to put your home in showing condition rather than living condition, and work with them on properly pricing your home to result in a sale.
 
Hire the Realtor that can answer your questions, back up what they say with facts and statistics and you should always insist on an easy to cancel listing agreement. If the Realtor is confident in their abilities, they should be confident enough to allow you out of the listing agreement with little or no cost should they not do what they promised.
 
In the Tampa area there are over 1,300 homes selling each month. Yes your home can be one of them.