Your Friend's Home Isn't Selling Should You Be Worried About
Listing Yours? September 2024
My Friend's Home is NOT Selling. I’m Thinking of Listing…Should I Be Concerned?
Selling a home in today's unpredictable market can be a daunting task If you're worried about listing your home because your friend's property isn't selling, you're not alone. The market is full of ups and downs, and it can be challenging to navigate However, understanding the key factors that influence the sale of a home can help you list your property with confidence and increase your chances of a successful sale
The Housing Market: A Roller Coaster Ride
The housing market is naturally a roller coaster of values, with prices rising and falling over time Recently, you might have noticed that typical neighborhood conversations have shifted. Gone are the days when you’d hear, "Did you hear what Wendy and Tom just sold their house for? Crazy! Who would pay that price?"
Now, you’re more likely to hear, "I was talking to Barb and Rick They mentioned they reduced their listing price, and they’re still not getting any showings "
Yes, these are the times we’re in, with a fair volume of properties sitting on the market longer than expected But don't let this discourage you Whether you're thinking of selling or absolutely need to sell, understanding the realities of the market can increase your success rate
Understanding the "Why" Behind a Sale
Every house, regardless of market conditions, has what I call a "Why" or a "Why Not/Isn’t" when it comes to selling
Understanding this concept is crucial if listing your home is on the horizon Identifying the common denominators between homes that sell quickly and those that linger on the market can make all the difference.
Realistic Value and Expectations "Why" is My House Worth Ex. $500,000?
Pricing is the number one priority when it comes to selling a home Your home's price needs to be realistic and based on what has sold in your area As proud homeowners, we often place increased personal value on our homes
We might start convincing ourselves that our home is worth more because of the personal touches and memories we've created there While some of these points may be valid, they often don't impact a buyer’s willingness to offer more
“Identifying the common denominators between homes that sell quickly and those that linger on the market can make all the difference.”
Look at Comparable Sales: Start by looking at comparable sales (comps) in your area These are homes similar to yours that have recently sold This will give you a baseline for your home's value
Consider Unique Features: Unique factors in your home, such as an upgraded kitchen or a larger lot, can add value However, be cautious about overestimating their impact Stick to hard facts and what the sales comps are saying
Focus on Functionality: Proper functionality, even in an older home that hasn’t been updated, can sometimes be more appealing than a fully renovated home that doesn’t function well
Being realistic about your home's value is crucial If your price aligns with market expectations, buyers
"Why Isn’t" My House Worth Ex. $500,000?
This angle of thinking can be initially challenging but is often more powerful when determining your home’s true value A great way to understand why your home may not be worth as much as you think is by exposing yourself to other homes via open houses
Feeling the environment and comparing your home to others can provide clarity When these homes sell, you'll have a better understanding of why your home might not be worth $500,000.
Why This Perspective is Important:
Buyer’s Mindset: Buyers generally come with a mindset focused on finding reasons why a home isn’t worth the asking price In a market with plenty of options, they may have ample evidence to back up their thinking
Be the Buyer: Try to view your home through the eyes of a buyer This can help you come to terms with the realities of the market and set a price that reflects what buyers are willing to pay
Avoiding Price Reductions: Pricing your home correctly from the start helps you avoid the stigma of price reductions, which can lead to questions about why your home isn’t selling
"Why" Does My Home Offer More/Better Amenities?
Amenities can be a significant selling point, but it’s essential to understand that not all amenities are created equal The beautiful in-ground pool you’ve invested so much in may not be as appealing to everyone Factors such as the color of the liner, the presence or absence of a bar, the type of equipment (salt vs chlorine), landscape choices, the amount of green space, and even the sun schedule can all influence how a buyer perceives your home
How Can You Evaluate Your Home’s Amenities?
Compare Amenities: Break down the unique factors within each amenity and compare them to what other homes offer A pool is not just a pool its quality, size, and who performed the work all matter
Visit Open Houses: Attending open houses can give you a better sense of how your home’s features stack up against others on the market.
Be Honest About Appeal: If your amenities aren’t as appealing as you thought, be prepared to adjust your expectations Buyers and experienced realtors will easily compare these differences, and they do impact your home’s value
It’s not just about having amenities it’s about having the right amenities that appeal to today’s buyers. Multiply this concept across multiple features, and you could see a significant difference in your home’s market value
"Why" Do I/We Want to Move?
Understanding your motivation for moving is key to making a smart decision It’s easy to get caught up in the idea of selling when the market is hot, but is it the right move for you now? Creating a pros and cons list can quickly clarify your situation In previous years when the market was out of control, a simple motivation/strategy was that one could sell their house for great value and trade up to a category (for similar carry costs) which may never have been an option We also saw investors liquidate and cash in, waiting ultimately for values to drop and start buying all over again. It’s critical to take a step back and look at the big picture Worst case, creating a list will give you a greater sense of confidence in your decision and quite frankly you will enjoy the process even more should you choose to commit to a real estate transition
Ask Yourself These Critical Questions:
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Will this move improve my quality of life and create more happiness? 1. Will this move add financial pressures if conditions change in the real estate market or my job/career?
When you replace "want" with "need," your perspective often changes These are the conversations I regularly have with my clients There’s no reason to force a move or convince yourself that it’s the right decision if it might not be By being honest with yourself, you can make a decision that truly benefits you.
The Bottom Line: There’s Always a "Why"
There is always a reason why a property isn’t selling By applying the steps above, you can identify the "why" or "why not" in your situation If you’re motivated to sell and position your home with realistic expectations, you’ll have a great opportunity to transition into a home that better suits your needs Remember, just because you can sell doesn’t mean you should Allow the process above to guide your decision, and rest assured that your choice is backed by education and common sense
Ready to make your move?
If you’re considering listing your home but want to ensure it’s priced and presented for success, contact us today for a free consultation Let’s work together to make your next move the right one
MATTHEW BUSCHMAN
REALTOR® I CO-FOUNDER
SYNERGY REAL ESTATE GROUP ANNUAL MULTI-MILLION DOLLAR
PRODUCER SINCE 2007
