SELLER WANTS TO SELL! WHERE ARE THE OFFERS?

I got a call last week from a homeowner wanting to sell his home. The property in question was already on the market for a few months with another realtor, and according to the homeowner, there had been no offers. We set up a time to tour the property and discuss his options.


I met with the owner, and as he showed me around, he explained that he’d purchased the property in order to flip it. A “flip” property is one in which an investor purchases a property, makes renovations and then sells it for a profit. In this case, the renovations included updated kitchen and bathrooms, new flooring, fresh paint and landscaping. The owner was quite proud of his work, and in fact, the end result is a nice, move-in-ready home.


So, if this house is so great, why hasn’t it sold? Well, there are several factors to consider, but these are the top three:


1. PRICE. This is always the top reason, isn’t it? In this instance, the list price is significantly higher than the current market rate for homes in the area. Most serious buyers are aware of home values, and they won’t write an offer on a property they consider too far out of their price range. It’s just common sense: If a house is well priced, it will sell. Price it right at the beginning, and the offers will soon follow.

2. INVENTORY. When I met with the Seller, there were 11 other houses for sale in the neighborhood, and three of them within a block of his property. It should also be noted that the home in question is the 2nd highest priced in the neighborhood. The home owner wasn’t aware of this fact, but I’m pretty confident that a serious buyer would be. Sellers need to be aware of their competition—especially in today’s market.

3. MARKETING. Remember those renovations I mentioned before? In addition to the obvious updates, the Seller told me about some improvements that you can’t see: new electrical wire, copper plumbing, and attic insulation. Although the previous property flyers were ripe with adjectives such as “serene,” “updated,” “fabulous,” and “lush,” none of these materials mentioned the less sexy (and more valuable) improvements to the home’s systems and structure. Effective marketing is essential to a successful sale.

The home owner was receptive to my comments and feedback, but when all is said and done, there is one other factor that concerns him: Profit. He has a certain sale price in mind, and he won’t consider anything less.  I could have have agreed to take the listing with the hope that he'd eventually come around to the realities of this market, but that wouldn't be in his best interest -- or in mine.  We've agreed to keep in touch, and we’ll see what happens next.