Thank goodness it’s extremely rare for us to get this question as practically every home we list, sells.
And on those rare occasions when we do get this question, it’s because the seller cannot afford to sell their home at market value and the seller knew this before we listed the home as we had set the expectations up front. Then why did we take the listing? Well, that’s a discussion for a later date.
Many times, a homeowner whose home expires (ie. leaves the market unsold) will ask us the question too.
I can make a strong argument as to why your home didn’t sell. Of course, you’ll have your own reasons like:
1. It’s a slow market
2. the railroad tracks going through my backyard
3. My neighbor has broken down cars in the front yard
4. It’s on a busy street
5. The school district
7. Small yard
8. Uneven yard
9. The kitchen hasn’t been upgraded
10. The bathrooms haven’t been upgraded
11. The carpet is too old and stained
12. The roof is the original roof from 1988
13. It needs paint…ad infinitum.
THE REAL REASON
But do you know the real reason your home didn’t sell? It’s because it is priced too high. That’s right. Your home is priced too high for the market.
Then you’ll respond with one of your own reasons to which I’ll say, “reduce the price”.
In a nutshell, your property, which includes: the building(s), it’s condition, location, any amenities, its faults (see all of the reasons the seller has given as to why their house hasn’t sold) DOES NOT substantiate the price you are asking. Put more simply, your home is not worth it.
Furthermore, a buyer WILL get a better deal someplace else. The buyers know the home(s) they can purchase at the price you are asking, and guess what? They will always buy the other home and you will continuously get beaten by the competition.
A PRICE EXAMPLE
Let’s take it a step further. Assuming your house should sell for $300,000 and you are asking $350,000. The buyers that can truly afford your home at $300,000 WILL NOT visit your home because they can’t afford to buy a $350,000 home so there’s no reason to look at them!
1. Your home is not worth $350,000;
2. The buyers that can buy your home are not even showing up to see it.