DFW Real Estate

DFW Real Estate Articles: 2008

When Your House Won't Sell
© by Mike Stevenson

Your house has been on the market with a real estate company for 180 days. The brokerage has run ads and held open houses -- you've even lowered your price by $5,000. A few people have looked at the house and everyone says it's beautiful... but nobody has made an offer. Why isn't anything working -- and what needs to be done to get it sold?

This scene plays out every single day. The houses and details are all different, but the reasons are usually the same. To help you get past this frustration, I want to give you a good idea of where the problem may lie and what needs to be done. Since I'm in the business and the finer points are my stock in trade, I'm going to keep this pretty basic -- while still providing you with good sound advice.

The Basics
Now, to every rule - there's an exception. But discounting the exceptions, here are some basic facts about selling homes that must be kept in mind.

1. A house must be priced near its true market value
2. The condition of a house must match its price range
3. Popular floor plans can help houses sell much faster
4. Location is a huge factor in both price and speed of marketing
5. Open houses are nearly worthless to the owner of the house
6. People who look at your house will usually say it's beautiful
7. In an average real estate market, your house should have already sold

The Details
Let's look at the first four points, one at a time:

1. The market value of your home is based on recent sales in the area. After adjusting for differences between your house and the comparable sales, we can know the price per square foot that you can expect to receive. The house must be priced near this level.
2. By condition, I mean the details of such things as carpeting, paint, hardware, fixtures, woodwork, landscaping, decor etc. Your house is competing with others in its price range. And even if your home is above average, buyers will still buy the homes that are WELL ABOVE average first... leaving your house to sit on the market. If your house is valued at say, $500,000 - it will have to be in finer condition to sell before competitors, than a house that's valued at $150,000.
3. Floor plans -- now here's a common problem. If your house doesn't have a popular floor plan (which currently means open and bright), it will usually take longer to sell. The solution to this problem is your choice of either: (a). Patience, or (b). A lower price.
4. Your home's location is another major factor. Since the location is fixed, it permanently effects the home's value and marketability. Properties with weaker locations usually must adjust their prices lower.

   Examples of locations that are beneficial would include homes that are:
   On top of a hill
   On the north side of the street
   Adjacent to higher priced homes
   Within good school districts
   Situated on a (quality) golf course lot
   

   Examples of locations that are detrimental would include homes that are:
   Adjacent to two streets
   Built on very steep grades or irregular sized lots
   Adjacent to unimproved property
   Adjacent to commercial or rental property
   Close to railroads, airports or highways
   

   The Strategy
   Using the illustration of a football team... you've probably noticed that when the team does poorly, the owner fires the coach. The coach makes all the difference!  A good coach causes the team to perform properly by applying good strategy. This principle applies in home sales as well. The real estate professional who can't produce a winning performance in a reasonable amount of time should be replaced. I'm concerned that many (if not most) real estate people who list homes, simply "list them" and then follow a little generic routine without applying any strategy! -- Oh well, I'll get off my soapbox.

   Now, for the "strong medicine" ... If you, the owner, don't make your house "sellable" by putting it into EXCELLENT condition and making it accessable to show... the fault of its not selling -- is yours. There are reasons that things work, and reasons that they don't. You have a right to more than just "good service"... you're also entitled to good results!

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