Selling a home is a more complex and dynamic process than most people believe it to be. The fact is, there are many motivating factors which go into facilitating a purchase offer. Buyers are not only looking at location and price, they are also judging other things about the home. Most sellers think that a lower price will make a property more attractive; but, that isn’t always the case.
Because there’s such a large amount of money involved in a real estate transaction, buyers are very careful about which property they purchase. It might even be fair to say that there’s a substantial percentage of buyers who are overly-critical. However, that’s a reality sellers have to deal with.
There are many reasons a home does not sell, price being just one of them. Some sellers make the mistake of pricing their property based on comparable homes currently on the market. That’s a bad move because those homes have yet to sell. Which means, the asking price does not actually reflect the eventual selling price.
The Price versus Sales Comparison
While it’s true that lowering your price will cause more interest to be generated in your home, it likewise sends a signal that you’re willing drop the price again. Buyers’ agents will take notice and will advise their clients to wait a bit longer to get a better deal.
“Whether you’re in a bone-dry market or a sizzling selling season, if you haven’t received any offers on your home you’re probably facing the question of whether to take it off the market. A house that goes too long without selling begins to appear “stale” and can actually damage your future chances of a sale.” —MSN Real Estate
While the price reduction may be as low as you’re willing to go, it will cause some buyers to put in purchase offers that are lower than the amount you’re now settling for. They will try to seize upon you’re perceived desperation to sell your property. It could also cause them to engage in a specific negotiation tactic–requesting you pay all the closing costs.
Why Your House isn’t Selling after Lowering the Price
With all this in mind, it’s important to take a long hard look at the possible reasons your home isn’t selling. The challenge will be honing in on the particular problem or set of issues that are causing buyers to pass on your property:
- The condition of the neighborhood. There are two kinds of eyesores buyers don’t want to see next to a home: distressed properties and ongoing construction. If any of these two are nearby, there will be psychological barrier in the minds of buyers wanting to purchase a home.
- Your listing agent isn’t putting in the necessary time and effort. If you have an open listing agreement, don’t count on the agent to put in overtime to try and sell the property. They’ll save their extra efforts for exclusive right-of-sale listings.
- You’ve made improvements that are objectionable to buyers. If you’ve done something like converted a bedroom into an office that’s one thing; but, if you’ve turned that same bedroom into an all-out media room, it’s no longer being used for the purpose intended. Buyers have a lot of trouble envisioning a room in a different way than they see it.
- You’ve made it home improvements that priced the home out of the neighborhood. If you installed a room addition, or added a second story, then you likely over-improved the house. While these add to style and function, they also increase the value of the home. That’s fine, if you plan on staying there forever; but, can work against you when you try to sell.