Overpricing -- this is the most common reason a house doesn't sell. Following that is the other deal-killer, lack of curb appeal. This applies even if the property is a fixer upper, you have to have some appeal or the buyer won't get past your photo on the Internet and they certainly won't get out of their car and walk up to your house.
Gone are the glory days with the seller's market. This is an unusually strong buyers market and inventory is at an all time high. Buyers are generally smarter and money is not as freely doled out so your house needs to be as desirable as possible.
Are you considering putting your house on the market so you can "see" what you'll get, without a need or motivation to sell, you need to be keenly aware of the pitfalls of overpricing. If you find you really need to sell your house down the road and it has staled as a listing that has been on the market too long, your place will be stigmatized. I know, you're thinking I'll re-list at a lower price. Yes, that sounds like a good plan, but buyers are fairly savvy and they look at listings and know if your place has been on and off. Plus, long term lists -- even if the price has become reasonable -- are stilled viewed as damaged goods. Buyers don't want to be stuck with a house that has been on the market a long time.
Buyers have lots of options available to them right now, and many have been on the market a long time. In our neighborhood, there is one house that has been listed -- with different real estate companies -- since August 2008. This house was overpriced and now probably seems quite stale to most lookers. The sellers probably don't look too motivated and haven't reduced the price enough. Remember, in this market buyers won't look at houses that are overpriced.
How do you know your price is reasonable? Talk with your agent and be ready to hear their honest input. Are you priced higher than similar houses? Is your house not getting showings? The public is generously providing your answer, your house is overpriced!
When did you buy your house? Was it right before the economy failed? If so, you bought in a high market and your price now may be considerably less than what you paid. The other thing working against you is your emotional ties to the house itself. You may think it is worth far more than it is.
As a home inspector, I have seen some real handyman special fixer-uppers, and I can tell you that your best move is to present something that appeals to the buyers on the outside. That first impression is critical and you need to entice people off their computer and ultimately out of their vehicle to come inside. Pull weeds, throw mulch out on flower beds, mow the lawn, trim hedges, declutter and remove trashy looking items. Make sure your entry is clean and freshly painted and spend some time on your entry. At the very least, the property should look like someone maintained it -- whether they did or not. You want to get the best price possible so make your property look the best it can. Remember getting the buyer out of the car is critical, if the place looks dumpy the buyer will get grumpy.
Selling Tip: Price the property correctly and give it curb appeal.
Inspection Tip: Have a pre-sale inspection so you know what to fix and you can add that peace of mind for your buyers.
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