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Three Reasons Why Your House Has Not Sold - 2008-07-13 |
If you've been trying to sell your house, you already know that this is one of the most challenging markets we have seen in years.
First, you are fighting a serious excess inventory of new homes. Builders simply overbuilt, and we are many months away from a complete absorption of those homes. In addition, many builders have expensive construction loans that should have been paid off long ago, and are highly motivated to make a sale, even if they have to lose money.
Next, there is a shortage of ready, willing and able buyers in today's
marketplace. I guess a lot of people are simply nervous about the economic future, and when someone is nervous, they tend to postpone major purchases. A house is certainly a major purchase. The truth is that a lot of prospective buyers are sitting on the fence waiting to see what will happen.
To make matters worse, there is a flood of houses for sale being added to the market by banks and lenders who have foreclosed against borrowers who should never have purchased in the first place.
Some of these were fraudulent loans, but most were bad lending decisions. Many of these loans were made to borrowers with questionable credit and unstable incomes. Add that to an adjustable rate loan with little or no down payment and it spells foreclosure as often as not. And these distressed home sales are poisoning the resale environment.
Finally, hovering over everything, there is an air of uncertainty about our future. Perhaps fueled by hysterical media, and certainly stirred by the specter of falling real estate prices, this lack of consumer confidence is driven home every time we fill up our gas tanks.
All these things (and more) have ganged up to make this a challenging summer for the sale of your house.
Even so, it is likely that right around five million existing homes will be resold during this calendar year. And if five million other people can find a way to sell their house, surely you can as well.
Here are three key areas to address in your house to make sure you are giving it every chance for an acceptable offer:
CONDITION:
In the world of real estate, there are two markets: retail and wholesale. In order to achieve retail price, the house must be in excellent condition.
Anything below "excellent" will drop your home into the wholesale pricing category, and your dollars drop significantly. So don't even try to sell today unless your home is in excellent condition.
Buyers today are not willing to take on a renovation project. There is so much inventory on the market that they simply don't have to do it. Instead, they look to buy a house that they can move into right away.
I consider this advice so important that I would make this statement: If you are unable to put your home into excellent condition prior to selling, youmight be better off postponing your sale or leasing your home until you can find a better selling market.
MARKETING:
I know what you are thinking. You are sort of hoping that, because the market is so tight and because of the internet and everything, you can just put a sign in the yard and your house will sell without an agent, right?
Well, it's also possible that the tooth fairy will deliver a full-priced
offer under your pillow tonight while you sleep, but it's highly unlikely. The reality is that, today more than ever, you will need professional marketing assistance to get your home sold. And the internet is not the one-stop solution to all real estate problems that some thought it might become.
The truth is that buyers are looking in a variety of places for your home, and yes, the internet is one of those places. But the sign in the yard and the flier at the school may prove just as effective as anything else when it comes to getting buyer attention.
If information about the features and benefits of your particular house is not reaching the prospects you hope to attract, then whatever you are doing is ineffective, and you will very likely need professional help. Failing to obtain it is usually penny-wise and pound foolish.
PRICING:
The price you ask for your home is critically important.
In today's real estate market, there are huge numbers of so-called sellers who are simply testing the waters. Today that attitude almost guarantees an expired listing.
Instead, buyers today are engaged in an exercise of comparison shopping. No one cares what it may have been worth then. Let's determine what it's worth today. And the only way to do that is to look at comparable homes which have sold recently.
Condition, marketing and price.
These three factors, more than anything else, will impact your ability to sell your home. And over the next three weeks, we will look at each in more detail.
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Upcoming Events
"EPA CERTIFIED RENOVATOR" TRAINING
Do You Work with Real Estate? You Must Be LEAD SAFE CERTIFIED as of April 22nd.
To all owners, realtors, investors, property managers, contractors, electricians, plumbers and painters. Do you ever engage in any level of renovation? If so, read this:
Any renovator, from owners to contractors, from plumbers to electricians to painters, who disturbs lead paint while working in a pre-1978 home, school or day care center, now must be Lead-Safe Certified. If you’re not, you can face tens of thousands of dollars in fines. Plus, you put the health of yourself, your workers and your customers at risk, which could result in lawsuits. One simple 8 hour class certifies you for five years. It’s that easy.
Since April 22, 2010, there are new Federal rules regarding how you perform any work that disturbs lead-based paint in homes, child-care facilities and schools built before 1978. You now must be EPA certified and follow specific work practices to prevent lead contamination.
Failure to follow the new rules can result in federal fines of up to $32,500 per day or up to 5 years in federal prison, or both. Don’t take a chance - it’s not worth it.
How To Become an EPA Certified Renovator:
In just one day, John Adams will teach you how to meet all EPA requirements and become an “EPA Certified Renovator.”
Don’t wait - register now! Click on “Seminars” and choose your day!
- Friday, September 10th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
Total Course Cost: $295, includes exam and EPA-HUD 400 page manual
Space is limited to 20 participants.
Training services provided by Seagull Environmental Management Co, Inc.
Courses are approved for purposed of certification under Section 402 of TSCA for the Certified Renovator.
This course has been approved by the Georgia Real Estate Commission for 7 hours of Real Estate Continuing Education
For more information, call toll-free 888-373-0029
Click above on the "Seminars" button to register
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