6 Likely Reasons Your Home Isn't Selling in 2020
So you listed your home for sale and it’s been showing, and showing, and showing, and… not selling. That means it’s time to make some changes, especially if your home has been on the market more than a month.
Generally, a home is going to sell for the most amount of money in the first 30 days. Buyers right now are really savvy, they have a lot of ways to do market research. If it’s sitting on the market for more than 30 days, we typically have buyers asking, 'What’s wrong with it?'
Having your home sit on the market is more than just frustrating; it’s probably costing you money. In my recent August 2020 analysis, homes that sold within 0-10 days went for 102.7% of their asking price.
After 120 days, the sold-to-list price ratio dropped to 94.7%. For a home priced at $200,000, that’s quite a difference in sale price: Go ahead, do the math. That's real money!
Bottom line is… the longer a listing sits, the more the sale price can potentially fall below list price. So every day that your home isn’t selling, it is, statistically, going to sell for less. Here are 7 likely reasons your home isn’t selling, along with my advice for how to fix the issues.
1. Your Agent Sucks
I know it isn't what anyone wants to hear, but this is the unfortunate truth. No one wants to hear that they wasted 6 months, or even a year, with someone who wasn't the best choice to begin with. Your agent should have a pool of buyers at their finger tips who want to see houses in all price ranges, so that when your listing is ready to go live you have a huge head-start. They should also have good relationships with nearly every high-producing agent in the area, this means more buyers through your home, and eventually a higher selling price.
2. Your Marketing is No Good
There's a reason why the real estate agent failure rate is in the 90% range. Yep, within 2 years, 90% of agents who get their license are out of the business. Some people don't have the right mindset about cash flow. With my listings, I spend spend spend to market them. If I lose money on a couple here and there, so be it. I'm in the business of selling homes quickly, for as high a sale price as possible. That means I need to plaster that house on every platform there is and get eyeballs on it and buyers through it, quickly.
3. You Didn't Price on a Round Number
I can go on and on about why this is extremely important, but trust me, do not go with the old “retail trick”. You cut the amount of buyers that see your home on search platforms in half.
“Why does every other agent seem to do that then, Nico?”
Good question, people are sheep.
4. Your Photos Look Like Someone Took Them With an iPhone
What's the first thing people lay eyes on when they see your listing online? (Which is where over 95% of buyers are looking, by the way) Photos! These better look like van Gogh himself had something to do with it. I have a professional real estate photographer on salary, using the best lenses money can buy.
5. You Don't Have a Cinematic Video
In today's day and age, video is a necessity. Buyers just eat this up, not to mention you rank much better in the algorithm on search platforms if you have a high-quality video to go with your listing. If your property is aesthetic from the sky, drone shots are also a great addition.
6. If All Else Fails, The Price Was Too High
If you can look yourself in the mirror and swear that all five above reasons were not the issue, then your home was probably overpriced. In this case, hire the same agent again and price it lower. It will probably sell. A monkey could sell a house for a cheap enough price, but that's not what we're after.