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Jackie Snead,  in Springfield, MO

If a home is price correctly in a good area and it's in mint condition and it still hasn't sold what would you do as a Realtor?

Asked by Jackie Snead, Springfield, MO Wed May 25, 2011

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16
Hi Jackie,

Sometimes, there just aren't any buyers. That's nothing you can control if people don't feel comfortable buying.

Figure out with a mortgage professional what salary range the buyer can be, see if the property is eligible for 100% financing with USDA and prepare the seller to pay closing costs so it makes it easier for people to buy.

Then see what these people are paying in rent. If their rent is $500 and the mortgage payment is $1000, then the property is not priced to the market. If you are near, then buy 2010 Turbo Tax software and do a tax return for someone with and without the deductions to see the yearly tax difference, divide it by 12 and then do the rent to own comparison.

Best of luck!

Fred
Web Reference: http://fredglick.com
2 votes Thank Flag Link Wed May 25, 2011
Analyze the community health: # of residences, # Short or REO, # Delinquent on Tax Database. If "all' distressed homes exceed 15% you've got a problem. (6% is normal even in healthy communities in my area)
It is very hard to sell a compartment on a sinking cruise ship at the suggested retail price.

Analyze nearby homes listed with:
1. Same attributes
2. Same price bracket

Analyze nearby homes sold with:
1. Same attributes
2. Same price bracket

Analyze where the highest number of sales are occurring for homes with:
1. Same attributes
2. Same price bracket
Make note of the agents who appear most frequently on both sides

Based on competing sales look at the number of showing your listing has had. If your marketing is working your showings per month should be 10 more than the number of sales. Take care how you determine this, it won't be obvious to most.

Decide if it's marketing (less then 10 x) or price (lots of showings but no offer). Most likely you will find the issue is MARKETING, especially if you've been in the business a while and the seller is listening to you.

Your research has revealed where homes ARE selling, WHO is listing them and WHO is bringing the buyers. Now it's your turn to 'reach out and touch someone!" Don't even think of calling these agents and saying, "I have a great house, do you have a buyer?"

Now if protecting the home owners equity is too much work, lower the price.

Annette Lawrence
ReMax Realtec Group
Palm Harbor, Fl
727. 420. 4041
Web Reference: http://www.MyDunedin.com
1 vote Thank Flag Link Wed May 25, 2011
I agree with the other comments. Also, the majority of home sales are actually through agent-agent contact and marketing. I would make sure my marketing is effectively reaching out to the other agents in that market. I would definitely get on the phone and call the top 20% of the markets agents to raise awareness of the property.
1 vote Thank Flag Link Wed May 25, 2011
Since you have gotten some good answers here - how about the desparate measures? I once did a bowl of 9 plastic oranges (a feng shui trick) in a listing that wasn't selling - it did sell but who is to say if it worked. Mark mentioned the burying of the St Joseph statue (upside down by the way) - it must work for some as our local board sells them!! Anyhow good luck to you.
0 votes Thank Flag Link Mon May 30, 2011
Well, if I were the Listing Agent I would probably start crying or praying!! Sometimes as mentioned there just is not a interested Buyer at that time. Could it be location, schools, too close or far from shopping. Basically it is not a perfect world and many Listings I sell before others still leaves me scratching my head! Best of Luck
0 votes Thank Flag Link Sat May 28, 2011
Hi, Many would ask how you know it's priced correctly if it hasen't sold. I would look at the current state of your maket, competition, etc to make sure all bases are covered. There has to be some reason why the property hasen't sold, you just have to figure out what that is.

Chris
0 votes Thank Flag Link Sat May 28, 2011
There are always many reasons why a home may not sell. Price is the most typical, but there are many others too!

First off, it's important to understand whether you are getting showings but no offers or no showings at all. Obviously, if you are not getting ANY buyers in to see the house, the scale of the problem is much worse. If you are getting buyers in but no offers, it should be easier to resolve. What's the feedback like (assuming you are contacting the showing agents and asking them - if not, do it ASAP)??

How's the access to the property? Can buyers and their agents get in fairly easily? Some sellers require a lot of hoop jumping.

Are the buyers able to see the home with the sellers gone? Sometimes sellers linger, or worse, follow the buyers around the house. If that happens, the buyers may exit as fast as possible.

How are the photos? Are they good, or not so hot? Cars in the driveway do NOT make a good impression - it's unwelcoming. Toilet lids need to be closed.... Kitchen counters cleared off and staged. Bad or only a few photos will keep buyers from wanting to see the house. I have sometimes been the 2nd, 3rd or 4th agent after a home didn't sell and one of the big things I did that caused the home to get an offer or two was to add great photos, and a lot of them, to the MLS and online marketing.

Just to touch on price for a moment: you need to run the numbers on the active listings for your price point, neighborhood, school district, etc. See how many are active (not sale pending) and how many homes, of the exact same criteria, sold & closed last month. Divide the actives by the solds and you'll see the months of inventory. If it's more than 6 MOI, you are facing a bigger challenge in selling your listing. How many homes are selling - one in five, one in ten? If it's one in 10 then your listing probably should be in the bottom 10% of the available homes. If one in 5, then bottom 20%. You get the idea. (Think of the old saying "it's a price war and a beauty contest".)

I did a blog post on this topic last January - there are more ideas and issues raised there. I'll attach the link and hope that it is a help to you!

Best regards,

Mary Pope-Handy
Sereno Group
Los Gatos, CA (Silicon Valley)
0 votes Thank Flag Link Sat May 28, 2011
I would bury a statue of Saint Joseph in the yard!
0 votes Thank Flag Link Wed May 25, 2011
Hello, Jackie,

I would talk with other agents who have listings in the same area and see if they are experiencing the same thing. Call the other agents who have sold recently in that same neighborhood. If there are several listings in the immediate area, coordinate with the other agents with listings and have a community event (garage sale, yard sale, BBQ, etc.) to draw more traffic. You can also hold a Broker's Open to get feedback from the other agents in the area to see what they think. As others have stated, if a property is not moving, price tends to fix all ails!
0 votes Thank Flag Link Wed May 25, 2011
There is only one real reason for anything not selling......PRICE!

Price it right and it WILL sell.....
0 votes Thank Flag Link Wed May 25, 2011
I would have to agree with Dan, lower the price. In this market with so many reo, short sale and foreclosures values have decreased. Buyers are few and the ones buying are looking for great deals. As other comments have been posted do updated CMA this helps keep sellers informed on what current market conditions are like.
0 votes Thank Flag Link Wed May 25, 2011
Drop the price.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Wed May 25, 2011
Unfortunately - I am going to have to go with Dan here. Price does seem to solve all. In our local area - I have some great listings. Mint and priced right. Buyers are a little lacking here and there is an overabundance of inventory. Top it off with 40% of the market being short sales and foreclosures and the buyers all wanting a steal ~ it makes it tough for the average home seller.
0 votes Thank Flag Link Wed May 25, 2011
Although, you and seller may think its price correctly, the market is telling you have the wrong price, drop the price 10% and see if that helps. Do a CMA monthly or sooner to see what the market is telling you. The market speaks everyday - are you listening to your market?
Web Reference: http://realtybydan.com
0 votes Thank Flag Link Wed May 25, 2011
I would analyze my competition, if any, and see if the activity on those homes is the same as yours. I would also look closely at my marketing plan to make sure I have covered all bases that will help sell this particular home. it might just be a sign of the times for your areas market.

Chris
0 votes Thank Flag Link Wed May 25, 2011
Jackie i would expand my marketing and advertising towards the potential type of buyer for that house. I would recheck my price as well to make sure i am priced at or just below market value. I would look to see what buyers are commenting after any showings, i would walk through the house as if i was a buyer and see if anything stands out that needs repair.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed May 25, 2011
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