When everything is right and it still doesn’t sell

It can happen.  I am not going to be one of those agents that pretends all my houses sell fast, like I am some sort of magician.   A lot of selling a house has to do with….the house and the market.  I put the same effort into all my listings.  Most sell quickly, even when the market was terrible.  Sometimes though, a house struggles to find a buyer, even when you’ve done everything correctly and the price is right.

Here are some reasons:

  1.  Too much competition.  If there are like 50+ houses competing for a buyer and all are pretty darn nice and equal to each other, you’re waiting for the right buyer who likes your house just a bit better than the rest.  I am seeing this a lot in a few towns surrounding Lexington where there are a ton of new construction homes.
  2. Bad timing.  Usually the market slows down when school starts in the fall.  The week that school starts is usually really slow because everybody with kids is getting ready for the school year and wants to enjoy that first weekend.  If your house is in a neighborhood with a very popular school district, you may have missed most of your buyers and are waiting for somebody to move during the school year.
  3. There are no buyers….at the moment.  I see this one occasionally.  Sometimes in a certain neighborhood or price range, there just aren’t any active buyers.  This is like fishing when you have the right rod and bait, but there just aren’t any fish there.    I had a listing in a neighborhood of $450-600k houses a while back.  I put my listing on in the late winter.  It got a few showings.  Over the next 6 months there were about 8 houses that also were not selling in this small neighborhood.  It got so bad that all of the agents got together and did a neighborhood open house to try to get some attention for our listings.  Of course, it was a total waste of time and energy because none of them sold any time soon.  It was much later in the year when several of them began to sell left and right.  It wasn’t the neighborhood’s fault.  It wasn’t the fault of all the listing realtors.  All of the houses were priced right.  There were just no buyers at that time and the sellers had to wait for them to enter the market.

 

How many days on the market are best?

One.

One day on the market is best.

A lot of sellers feel like if their house sells immediately that their realtor under priced the house.  Some of them feel like realtors shouldn’t make that much money when a house sells fast.

Here is the truth from 14 years experience:  1)  A house will always sell for market value.  If it was under priced, buyers will bid over the list price.  2)  The effort between selling a house the first day on the market or it taking 6 months is not that different.  Being the listing realtor is a lot like fishing.  You bait a hook with your marketing and cast it in the pool of buyers.  Then you wait for one to bite.

Enough about the realtor perspective, how about why this is somehow great for the seller?

Statistics tell the story.

A seller is much much much more likely to get their full asking price when it is a new listing.

When a house hits the market, every buyer in that price range comes out to see it.   They often see other buyers leaving the house before they see it and/or have other buyers waiting to see it when they leave.  Buyers know that they need to act fast if they want the house.  They know that other buyers may want it too so they better put out their best offer first.  There is a sense of urgency.

If it sells, it will most likely sell for the full list price.

Once all the buyers currently in the market have seen it, a seller will only get showings as new buyers emerge into the market.   There is no frenzy.  No buyer is afraid of losing the house so they want to see how low they can get the seller to go.

A phenomenon that has been happening since buyers have been able to set up their own saved searches on Zillow is that buyers seem to look at a house online only once when it is a new listing.  Few buyers these days will comb through rejected listings.  They opt to just wait for new listings to come on the market…..which means a house that did not sell quickly is unlikely to ever have a buyer reconsider viewing the house.  It is like it doesn’t even exist to them.

So, how many days on the market are best for the seller?

One.

One day on the market is best.