Agent: “Your house is overpriced”.
Seller: “You have not done enough advertising”.
Frustrated sellers are not always realistic sellers. Some are. Some of this marketing versus value versus price stuff can be confusing, but ultimately, it comes down to the buyer. What does that mean? It means a buyer has to find your home to be their favorite, one they cannot live without. It means if you have had 20 showings for your home, and no offers, something is wrong. It may be price, condition, staging, or location. My first manager, who I will refer to as TK, said “Price fixes everything”. He meant that if you had a poor location, redcuce the price. Poor condition, reduce the price. No offers, reduce the price. But that is not the only answer.
Marketing which creates exposure is what most sellers cry out for. While I won’t give away any secrets based on years worth of experience here, (I will when chatting with my clients, however) I will say that the answer lies somewhere in the middle.
Let’s start with price. Let’s take a $190,000 condo, and price it at $210,000. Then, let’s advertise it every single day with a full page ad in every newspaper for 6 months. Mail it to every home in the USA with a color brochure, floor plan, and place it on every website with a virtual tour. Then make a custom blinking neon sign. Offer buyer agents a hearty bonus. It will not sell.
Next, take a $190,000 condo, price it at $189,900, and send an email to your friends. Include a couple pics, and try to sell it privately. Unless you get really lucky, it will not sell.
Most marketing real estate agent do to promote a home is weak. Ineffective. And overpriced. The rely upon the MLS to get the home sold, about 75% of the time. The other 20% of the time, an agent in their own office sells the property. Sounds like the system is broken.
Where FSBO’s and others fail is when they try to save the fee of a traditional broker, they also try to get more than what the market is willing to pay for that home, at that given moment.
So, why is your home NOT selling? There are only a few reasons:
1. It’s priced so high that no one even wants to make an offer. Reduce it. Be objective.
2. There is a very limited market for your home, due to current demand.
3. The market / exposure your agent is doing is poor. Review everything. Sit down with them, and see all. Don’t make them feel defensive, just work with them to get the message out properly. But, just because they take a new exterior photo…
4. Your condition or staging needs some help. Hire a professional stager, right away. Not all agents are good at staging.
5. Eliminate the things you can control: paint needed areas, trim the lawn and landscaping, steam clean the carpet or replace them.
6. Be agressive, do many open houses. Don’t tell friends-family-neighbors how frustrated you are. Wear your game face, or you are bound to invite lowball offers.
Find the right balance or proper price and great marketing. And remember, price is part of marketing.