Every property owner knows that there are a lot of factors to consider when selling real estate. From studying the market first, right through to deciding on a competitive price, there is much to consider that will determine the success (or failure) of a property sale.

 

This is especially important in today’s real estate industry, where having a “dream house” in a safe neighbourhood is no longer an enticing enough reason for buyers to purchase property. In fact, some family homes stay on the market for years, in spite of their mint condition and scenic location. 

 

Being unable to sell a property can be discouraging, which is why you need to prepare and plan accordingly for the best and worst case scenarios when selling real estate. 

 

By developing an effective strategy to sell real estate and understanding the reasons some properties don’t sell, you can get more offers and boost your chances of a higher property sale.

7 reasons properties don’t sell

 

Knowing the most common reasons that properties don’t sell ensures that you avoid making the same mistakes with your own sale. 

 

Here’s what you need to know. 

1. The price is too high 

 

Overpriced homes can be a major turnoff for potential buyers and it’s usually what prevents them from making an offer. To avoid this, you can calculate your property’s fair market value and adjust your prices accordingly. 

 

Thanks to technology, there are online tools you can use to calculate your property’s price. You can also request a Comparative Market Analysis (CMA) report from your real estate agent so that you can review a list of recently sold properties similar to yours. This allows you to gauge how much your property can sell for. 

 

Doing this will not only increase your chances of a sale, but it will also make the buyer feel more at ease knowing that they purchased your property at a reasonable price.

1. A bad first impression 

 

First impressions last and it’s usually the negative ones that remain for longer. So, if your potential buyer’s first experience of seeing your property is bad, they may avoid any further transactions with you and even talk about their negative experience to others. This, in turn, could damage your reputation as a property seller. 

 

You can give a great first impression by making the property more inviting for potential buyers. This includes repairing damaged areas, repainting walls, and even changing the way you sell the property so that you fully engage your buyers.

1. Inappropriate renovations

 

A lot of owners believe that their property’s value can be increased by installing amenities like swimming pools, outdoor basketball courts, or brand-new appliances. But the truth is the majority of these renovations won’t increase your property’s actual worth. It can ultimately mean higher (yet unnecessary) expenses without any returns. 

 

These renovations may not even meet the needs of your potential buyers. So, it’s important to understand your target buyer and plan renovations according to their preferences. 

 

And if your property is severely damaged, you need to consider whether it’s best to sell the property as is rather than spend thousands of dollars on repairs.

1. Lack of marketing and advertising 

 

Marketing is one of the reasons some properties get more attention than others.

 

It plays a huge role in widening your target market reach. By employing the right strategies and tools, your advertisement or property listing can reach more prospects and increase your chances of a sale. 

 

Moreover, technology has made real estate marketing more accessible today. By utilising tools and programs, property sellers can create websites, run social media ads, and even host virtual tours to engage and excite potential buyers. 

 

All of these, when combined with the right competitive mindset, can help in expanding your prospect pool and get more people to check out your property listing. 

1. Not using a real estate agent 

 

The truth is, most property sellers (who aren’t real estate agents) aren’t fully equipped to understand the ins and outs of the industry, so they end up either not selling the property at all or coming up short in profits. 

 

In fact, a study conducted by Which Real Estate Agent, a property comparison website, and reported by Urban showed that homes sold without a real estate agent only made less than one percent of the total property sales for the year. 

 

Employing a real estate agent can help you identify the correct price, negotiate terms with your buyer, expand your pool of prospects, and properly process the documentations of your sale. 

1. Bad timing

 

Some properties fail to sell on the market simply because the listing was posted at the wrong time. The real estate market changes constantly– some months have increased sale activity while others, little to none. 

 

Studying the ideal selling season will help you identify the best time to post your property listing. 

 

By scheduling it during these “peak periods”, you can make your property more visible to potential buyers and receive the appraised value of your property. 

 

The level of sale activity can change from year to year, though some seasons have more activity than others, specifically spring and summer. 

1. Property (or seller) is not ready for sale

 

Some properties do not get sold because they just aren’t ready for sale. Generally, a property is not ready for buyers if it needs major repairs or thorough interior and exterior cleaning.

 

Another cause is that the seller themselves isn’t ready. This is because of a lack of funds, an emotional attachment to the property, or a change of mind. Buyers will sense this and see it as a red flag, resulting in them finding another property instead. 

 

Given this, it’s important that you are sure of your decision to sell and that you’ve prepped the property for viewing. 

What to do if your property doesn’t sell 

 

It’s best to be prepared with a back-up plan so that your efforts don’t go to waste. This includes reassessing your marketing strategy, creating deals for your prospects, repairing areas of the property, and even considering renting it out to earn another stream of income while the property is still on the market. 

If you’re having trouble selling your property, give us a call as we’re happy to talk through your options.