Sarasota Real Estate Doesn’t Sell When Sellers Commit “Seller Suicide”-Part 1!

TOP FIVE REASONS SOME HOMES DON’T SELL.

If your house or condo is listed for sale, there are five key reasons your home might not sell although nearby comparable residences are selling:

1. YOUR ASKING PRICE IS TOO HIGH. By far, this is the top reason a home doesn’t sell. I realize this is not what you want to hear. Especially in today’s market, buyers

want a “good” deal. To a fault, buyers mistakenly believe banks are giving away houses through foreclosure and short sales. Therefore, many buyers believe you should

accept an offer below market value.  Although you might be just testing the market, prospective home buyers are very smart and they know an overpriced listing when

they see it. It’s difficult enough for buyers’ agents to show properties priced “right” and not short sales; it’s worse when sellers demand a list price not supported by

comparable sales. Many (perhaps all) buyers’ agents won’t even bother showing your property if you insist on a list price above comps. By the way, comps should not

include distressed property sales, unless your property happens (unfortunately) to be in a neighborhood surrounded by distressed properties beaten down in price.

If you do NOT need to sell today, don’t try to sell. In Florida, it’s a buyer’s market. Buyers want to buy, especially to take advantage of taxpayers’ generous $8,000 or

$6,500 tax gift. Make no mistake, buyers are picky. For this reason, if you want to get your home sold during this peak sales season, it is critical for you to be clear on 5

primary reasons houses don’t sell.

2. YOUR HOUSE IS A SHORT SALE. By no fault of yours, many buyers do not want to see properties listed as short sales. Many buyers’ agents do not want to show

houses listed as short sales. No guarantees exist for buyers submitting offers on shorts. Buyers can wait months for the bank to reject a 100% fair market offer with no

requested concessions. Buyers are making very fair offers and banks are rejecting their offers, after forcing buyers to wait without word for months. It’s gotten so bad

many buyers’ agents delete all short sale listings.

3. CONDITION OF THE HOME. Today (especially today), buyers are picky. It’s a buyer’s market. Buyers want a house in near “model home” condition where all they

have to do is turn the key in the front door and move in. However, if the residence requires considerable work, it’s a turn-off for all but the most die-hard bargain

hunting home buyers. Believe me, their offers reflect their demand for a bargain. Be prepared if your property is less than “model home” condition.

Fixer-upper homes appeal to a very limited market of home buyers. Sometimes known as “bottom fishers,” bargain hunters will purchase such homes only at bargain

prices, usually 65% of ARV (after repair value). Naturally, this is well below what you could net with modest fix-up work such as painting (the most profitable

improvement of all), repairing, and cleaning. Be aware word quickly spreads among local real estate agents when a home “doesn’t show well.” Buyers’ agents will only

show such properties to their bargain hunters, usually investors, who want to purchase far below market value.

4. “AS IS” HOME SALE CAN BE A RED FLAG TURN-OFF. Keep in mind, buyers are picky and want model-home condition. Today, two types of properties are listed for

sale: short sales/REOs and “regular” properties not distressed. Short sales and REOs always sell in “as-is” condition. However, closely related to homes that don’t show

well are properties not listed as short sales but still listed for sale in “as is” condition. The term “as is” means the seller offers the property in its current condition and will

not pay for any repairs. However, the seller must still disclose in writing to buyers all known defects, such as a leaky roof or a bad foundation. Logically, a buyer

shouldn’t eliminate a listing just because it’s offer in “as-is” condition. All a buyer needs to do (and should do on any offer to purchase) is to make the sale contingent

upon satisfactory professional inspection. If the buyer doesn’t approve the written report, then the buyer can cancel the purchase and get his/her/their good faith deposit

refunded. Of course, if your property needs any repairs that you can’t afford or don’t want to make, you have no choice but to list in “as is” condition, perhaps at a reduced

price.

5. LISTING AGENT DOESN’T OR CAN’T MAKE THE HOME EASY TO SHOW. Well over 50 percent of home sales involve a listing agent and a buyer’s agent. If the

listing agent or circumstance (READ: tenants!) make the property difficult to show, your house probably will NOT sell. Further, requiring your listing agent to be presen

for all showings discourages buyer agents. Unless there is a security reason, listed homes should always have a multiple listing service (MLS) lockbox key easily available

for buyers’ agent showings on short notice. In most cases, tenants cause your house not to sell. Don’t get me wrong, I realize you need the income. I also realize your

tenants will be inconvenienced (at the least) with showings and selling. Naturally, they don’t want strangers “trespassers” imposing on them. They don’t want to move.

To a lesser degree (much lesser degree), some houses don’t sell because the listing agent wants to “double end” the home sale by getting both the listing portion and the

selling portion of the sales commission (that is, a “pocket” listing). Be wise to this reality, though most agents today are damn happy to get a commision of any kind.

In today’s home “buyer’s market” in most communities, listing agents and do-it-yourself “for sale by owner” home sellers must use every marketing resource available.

It’s not enough any more for us listing agents to stick a sign in front of your house and throw it into the MLS (multiple listing service). Brochures, flyers & postcards

mailed to nearby homeowners who may have friends who want to move to the area are nice too. All this takes money…the listing agent’s money. Your listing agent is

betting that he/she will get paid for selling your house by fronting the marketing money. If your house fails to sell for any reason, your list agent doesn’t get paid for

time and expenses.

Obviously, listing agents are reluctant (perhaps against) spending money on short sale listings. It’s too unpredictable. The bank isn’t reimbursing the agent when the bank

rejects good offers and forecloses. With nearly 80% of buyers beginning and continuing their house-hunting on the Internet, don’t you think your listing agent should

understand how to market your house on the Internet?

Fortunately, I am one Sarasota Realtor who knows and applies an Internet Marketing strategy in addition to traditional (and still necessary) marketing sales strategies. The

bottom line is to get you a fair offer from an able and willing buyer. I know how to find you an able and willing buyer. Call me now to discuss selling your home (or

buying a Sarasota home for sale).

Sarasota homes or condos for sale require harder work in this current buyer’s market. If your home is NOT a short sale and it’s been listed for sale for over 45 days and

without any purchase offers, it’s time to ask why. five key reasons your home is not selling. Maybe it’s you; maybe it’s your listing agent. adjustments to get your home

sold.