I recently had a reader leave the following comment looking for some direction and a solution:
Hi,
Your ‘about this site’ said you would like to hear from sellers who are struggling. Here’s my story.
I am building a new home, so I HAVE to sell (technically I qualify for both mortgages, but it’s not exactly something I can do for any length of time). My current home has been listed for 120 days, with an agent. We have had about 6 private showings, and dozens of open houses with ZERO traffic and zero offers.
My agent says that all the other agents are experiencing the same thing. My home is unique in the area, so comparables are difficult (it’s rare to find a 2nd bath and a 2 car garage in the area). My agent did a market analysis and has never indicated that he thinks my price is too high. We reduced the price last week from $123,900 to $119,900 and still getting no traffic. My home is “move in ready”, with new laminate flooring, no repairs needs (sic), I have “de-personalized” and “de-cluttered”. We are in the local newspaper on the front page of the Homes section every week, we are on the Duluth Area Association of Realtors MLS, the local Coldwell Banker website, the national Coldwell Banker website, and I also put regular ads on craigslist as well as hanging flyers around my work. What else can i do?!?! We are scheduled to move into the new house on 11/1/08, and the current home will then be vacant and unfurnished.
Melissa, you are not alone in your frustration. As your agent said, many sellers are struggling to get their home sold. As much as it may comfort you to hear that you are not alone, it really confirms that you must do something different to set yourself apart. Let’s talk about marketing, staging, timing, and price.
Marketing: It sounds like you have some great exposure. In my Southern California market, newspapers rarely work and I would suspect that’s true in your area as well. It’s great exposure, yet more and more buyers that are serious spend their time online. You have some great marketing online, but is it enough? Here are some other ideas:
- Individual website for your property (If your agent needs a resource for this, I have a good one). Rather than flyers at your office, send a link to your own property website via email to friends that they could potential forward to their own friends and family. Look how often people forward you emails. This can be very effective.
- Are you on all the high traffic home search engines? Zillow, Trulia, Realtor.com (fully enhanced with quality description and your agent’s contact info).
- Photos could use some improvement. I’d rather see your agent invest in a photographer than newspaper advertising. The baby’s room is great – but many of the shots almost appear to be looking at the floor. I’d definitely get it reshot prior to your move.
Staging: You’ve done such a great job of decluttering, it almost looks bare. Revisit your dining room shot and the baby’s room shot. The baby’s room looks warm and inviting. The dining room looks cold and empty. I’d reshoot that photo with the table set, the drapes open, and a plant in the corner. Warm up the space. Look at your photos through the eyes of a potential buyer. Do they excited you? Invite you?
Timing: Timing is critical when selling a home. Right now you are facing some challenges due to the market conditions and consumer uncertainty with the coming election. I suspect you also have local conditions that will soon play a role, the weather for example, as well as the local buying cycle. You have your personal timing and your upcoming move that is impacting your sale. Because you are facing some real negatives in terms of timing, this has to play a role in some of the decisions you are facing.
Pricing: You mentioned the comparables are a challenge due to the uniqueness of your home. With 6 showings in 120 days, I would say that the market is telling you something. Your home may be worth $120,000 if the timing was different. But based on the timing and the traffic, I’d say another price reduction is clearly in order. This can be a tough pill to swallow but you are facing some tough choices either way.
Remember, buyer’s motivation today is about finding a good deal. They see the news and read the paper. Potential buyers are nervous and reluctant. What inspires them to take the leap in times of uncertainty is a good deal. It’s not enough to be priced at fair market value.
Have you considered renting the property? If you don’t want to reduce the price (or can’t), it might be time to think about renting it out. These are tough choices. Being a landlord has it’s own inherent risks and considerations. If you do rent it out, try to have the lease expire in the Spring when the timing serves you to list it for sale again.
I would act with a sense of urgency on all the different areas that you can improve upon. Have a heart-to-heart with your agent. Communicate with him and together, you can get your home sold.
Agents – have I missed anything? I know Melissa would appreciate any additional insight and help.
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{ 3 comments… read them below or add one }
ave you look at the sold’s how long where the on the market? @ what price would you think some one would buy it today? is that a price you could live with. Not only do you have to be in the best location address wise. You should be in the best location Value wise. The third location, is your mind set in the write location. Truthfully You love your house and think it is the nicest but so does everyone else . Shelter is a commodity with emotional baggage. location location location.
A suggestion might be to have a home inspection performed by a reputable 3rd party company. They should provide you with a detailed inspection report that you can “leave on the counter” so that potential buyers can review it and see for themselves that it has been thoroughly checked out. The trick is to get them there first though. Use the “Home Inspection Certified” status in any advertising that you do. Some home inspection companies also list pre-certified homes that they have inspected on their own websites, that can add to your exposure. Check with some of them and see if they are willing to work something out with you. A good source to find a good, reliable, and certified home inspection company is through InterNACHI which is the International Association of Certified Home Inspectors. http://www.nachi.org. Also make sure that whoever you use, that they have Errors & Omissions Insurance along with Limited Liability. Hope this helps.
Brett Shaw from Cyberhomes:
From your story I can see that you have your home listed with Coldwell Banker. Have you heard of the “Homebuyer Ready” program? Having not seen any pictures (only comments) of your home it seems as though you’ve done a good job of staging. What this involves is a pre-listing inspection, a CMA. a home warranty, a full written disclosure, and a statement that shows all repairs have been made (based on inspection). This is a nice incentive for potential buyers. Ask your agent for details.
Also, I agree that print advertising is becoming a thing of the past. I am a big proponent of online advertising. After all, approximately 89% of people looking to buy a home start their search online. For this reason, as Linsey states, it is important to have your home on these sites with updated information. Check out Cyberhomes.com. If your home is listed with Coldwell Banker then it is probably already listed. The listing of your home is coupled with a ton of local information. If you just spend some time on the site, you will see why it is important to have the listing here.
Most people these days are not just looking for pictures of the home because they can get that anywhere. They are looking for a complete snapshot of the area, including schools, demographics, etc. This is what online listings can accomplish.