Home Not Selling? It’s Not Personal, It’s Probably Price

(June 20, 2014)


Home sellers face a new reality as they look to move up, down, in or out of their Sunshine Coast dream in today’s market. Consumers, particularly those who purchased their homes within the last five years, often find their options limited by a lack of equity. Those who can sell are sometimes numbed by deflated home prices and find it difficult to justify yesterday’s valuations with today’s reality.

Many home sellers have dug in on price hoping to lose no additional ground. Others seem to have taken this market personally, letting emotions override analysis when setting price. Buyer sentiment has shifted as well, centered on maximum value with abundant amenities – resulting in stalemates and homes languishing on the market. Both sides should be realistic as comparable sales and local-market dynamics still determine fair-market value.

And there are compelling reasons to be realistic and make a move now. Sellers, assuming their objective is to buy another home, can capitalize on some of the lowest mortgage interest rates on record and an inventory of homes at attractive prices. So while they will sell for less, they will also buy for less and with significantly cheaper borrowing costs.

Today, a house priced at or slightly below market value will attract the interest of real estate professionals and buyers, while overpricing chases them away. Even if the sellers adjust their prices later, it’s difficult to recapture buyer interest.

• Condition and appearance. Sellers shouldn’t rely on buyers to use their imagination; they need to capture it. Remember that buyers may see seven or eight homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious, and the most cheerful.
• Terms/conditions. Even if the home is accurately priced, and the buyer is delighted with what he or she sees, if the buyer can’t live with the terms of the sale, he or she may walk away. Keep an open mind on terms and conditions and evaluate how they may affect a potential sale.

I quite often find that my Seller will focus on the price, the other terms are just as important, so before you dismiss the offer as being too low review all the terms and conditions and always counter every offer. An offer represents a Buyer who would like to buy your home the offer may seem insulting but put your emotions aside and counter. Remember unless the fisherman gets a bite he never stands a chance of landing the fish.

Buyers the market is definitely moving, already this month there have been over 40 sales, May was a banner month and June is looking the same, your Sunshine Coast home is waiting for you.

– Kenan