Why Homes Don't Sell In A Hot Market
If you haven’t heard it is a very hot market, but why are you still seeing homes not sell? Is it the house that has too many issues? Location? Condition in bad shape? Pricing? It is a combination of all those but lets take a closer look.
Now more than ever I am seeing homes continue to be over priced and that is a result of a seller expecting a high demand for their home. The seller will often build in the premium and expect to get it. The reality is it doesn’t alway work that way, the market may not agree and stay away. Over pricing tends to happen all the time but this can be risky and often leads to sitting on the market much longer than normal.
Another common reason I am seeing is the condition of the property, homes that sell fast right now are in move in or turn key condition. Properties that are in bad shape and their price does not reflect it tend to sit longer. In other words if the home is in bad shape but the seller is still asking full price like homes that are in perfect move in condition, that home will tend to sit on the market longer.
Other factors I see is location and needed repairs. Location is always important and even a gorgeous home located in a bad location will sit on the market even when it is hot. Excessive repairs tends to cause an issue as well for not selling quickly. Remember not every buyer is willing to do some repairs. Keep in mind some banks have their limits on property condition and if those limits are exceeded they won’t finance it at all which really alienates many buyers. Once you get rid of buyers with financing you are left with cash buyers and those buyers want a discount.
Remember price the property correctly given the condition and location. Don’t add a premium as that will scare buyers away who are in tune with the market. Also look at properties that have been on the market as an opportunity to possibly go in with a realistic offer and win the home. This is really where having a real estate agent like me help your properly price the home so this doesn’t happen to your home when you list it.
With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate. I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.
Have questions about this or other topics, don not hesitate to contact me.
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Luis Cuevas, Realtor®
RE/MAX Cross Country
1990 Justin Road
Highland Village, Texas 75077
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