Archive for March, 2013

Why didn’t my home sell?

March 20, 2013
Why didn't this home sell?

Why didn’t this home sell?

This happens more often than not where a home was listed with an agent and soon thereafter, the contract expires or the home is taken off the market because it did not sell. This begs the question…why didn’t it sell?

I wished there was a generic reason that encompassed every situation, but in fact, there are several potential reasons depending on the specific home in question. The number one reason why a home doesn’t sell is PRICE! Market research has shown that homes that are not priced competitively will not sell. I could list my home and price it at a half million dollars, but I would never sell it. Many people falsely believe that they can set the price for their home. This isĀ not the case. In essence, neither the homeowner or the real estate agent set the price…rather, the market sets the price. If you are overpriced, it will sit there and never sell. In addition, homes that are severely underpriced can sit there as well as many potential homebuyers will think there is something wrong with the home, thus never seeing the property. This is less likely as more home buyers are looking to find homes at a discount.

Where being underpriced can effect your ability to sell your home is centered around how agents research homes on the MLS for their clients. Typically, they put parameters in the system that include number of bedrooms and baths, square footage and price. If your home is underpriced for the square footage, those agents may not find your home. Incidentally, if a buyer is looking at your home price, they may be looking for a smaller square footage and then, that agent again will miss your home on the MLS. Of course, this is not the typical element of price that forces a home to sit unsold…usually the home is overpriced.

Being overpriced is detrimental in many ways. The National Association of Realtors (NAR) has done research to determine that homes that are overpriced when they are initially offered for sale tend to eventually sell for a mere 80% of the original asking price. However, in the Triangle, if you are priced competitively, sellers tend to get 97-98% of the asking price. Let’s break this down into numbers so we can understand it. If you initially priced your home for $200,000 and it was overpriced by market terms by 10%. Your home’s value is truly around $180,000. If you overprice it and sell it for what NAR says the average overprice home eventually sells, then you will be selling it for $160,000. Now, if you had priced it competitively in the first place, you home would have sold for 97-98% of asking price. Worse case by these standards, you would have sold the home for $174,600 (97% of original asking price). Also, this does not take into account the fact that your home would have been on the market much longer. The average home that is overpriced tends to be on the market much longer than should you have been priced right to begin.

I know I have spent a lot of time on price, but again, this is the number one reason homes do not sell. There are other reasons that need to be better investigated to ensure which is the cause. Typically, if I have a meeting with one of these sellers who are looking to change agents, I start by doing a Comparative Market Analysis (CMA) to determine how competitively priced they are. If they appear to be well priced, then I start looking at the other potential reasons for a no-sale.

One such reason would be the condition of the home. If a home is in poor condition, it will be much more difficult to sell that home. Homes in need of cosmetic work will typically sit there, especially if it priced comparative to a home that does not need the cosmetic work. In this case, the sellers have the option to either reduce the price to a point where the potential buyer will find it appealing or they would have to do many of the cosmetic repairs to make the home “show” better. Along this line, homes that are cluttered will not sell as well as those that are clean and well organized. Clutter does not simply mean junk, but it could mean you have too much furniture in a room. If a room has too much ‘stuff’ in it, the room looks smaller and less appealing. I showed a home in a very nice neighborhood in North Raleigh once that had practically every wall in their living room blocked by a piece of furniture. This same home had seven or eight grandfather clocks. All of the furniture made this large home seem very small.

Objectionable items in the home can have the same affect as a cluttered home. Objectionable items include things you would not think as being objectionable. If you have too many personal photos hanging on the walls, this could turn a potential buyer off. If you smoke in your home and a potential buyer, who is a non-smoker, walks into the house and smells the smoke, they will be turned off and discount the home without truly seeing the house. Remember, buying a home is an emotional decision so anything that can impact a buyer’s emotions can affect the sale of your home. Other example of objectionable items include stuffed animal or deer heads mounted on the walls. Basically, look at your house and if there is anything that may offend someone, it should be removed.

Marketing is not as important as many agents will make you think, but with certain homes, can be a determining factor. When I am visiting with potential seller clients, this is one of the last things I consider as the advent of the Internet and MLS service is amble marketing for most homes. I would consider marketing an issue with more higher priced homes that has to attract a certain buyer. If your home is priced near a million dollars, the buyers for this home would be more inclined and impressed with a more extensive marketing plan. For these homes, virtual tours as well as possibly a video on the home’s personal website would be very effective to get potential buyers to look at the home. In this price range, a potential buyer could very well come from someone who is not actively looking to buy, but sees a home that they love and decide to make an offer. So, you need to have additional marketing tools to get their attention.

Obviously, this is not all inclusive a list, but it should give you an idea as to why your home did not sell. For closer scrutiny as to why your home did not sell, please contact me at Steven@BackNineHomes.com and I will be happy to meet with you and give you my professional assessment.

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Upcoming Golf Tournaments and other important items

March 4, 2013
The pose of a Champion

The pose of a Champion

As the Golfing Realtor, I feel it is important for me to emphasis and promote upcoming golf tournaments and other important items. There are many exciting golf opportunities that should impress many people. This post will not have all of the golf tournaments in the Triangle, just some that I know are coming.

Before I get into the tournament schedule, I would be remiss not to mention that the real estate season that is quickly approaching. March tends to be the month that showing and general activity begins to really take hold. The market has traditionally shown that it is tied to the spring and summer seasons. If you have been reading blog, you will know that 2012 was a very successful year for the Triangle real estate market. Sales were up and inventory was down. By some indications, foreclosures in 2013 will be up over last year. If last year’s trends continue, 2013 is shaping up to be another very successful year.

With that said, if you have been thinking of either buying or selling in 2013, now is the time to get your home ready for sale and get it onto the market. The best thing you can do to sell your home quickly is to have it ready for show from the beginning as research has shown that the most showings you will have on your home will be in the first few weeks it is on the market. So, be ready to sell and then call a qualified agent whom you like and trust to help you price your home correctly and sell it in a timely manner. Most people looking to sell a home are doing it so they can either move-up or downsize their living quarters. This means you need to definitely be priced right and showing your best foot when it officially goes on the market.

Now that we got the business out of the way, there are several golf tournaments coming up that may interest you. Also, I have listed several golf outing (not tournaments) that may interest you. As a committee member of the Downtown Links, we have monthly outings and have secured some very nice courses throughout the Triangle. If you are not a member of the Downtown Clubs of Raleigh, you can be my guest to any of these events as I will be at most of them. Please let me know if you are interested in any of these dates.

 

Downtown Links

Wednesday, March 13- Devil’s Ridge Golf Club, 1pm shotgun start

Monday, April 15-Prestonwood Country Club, 12:30 pm shotgun start

Tuesday, May 14-Raleigh Country Club, 12:30 shotgun start

Thursday, June 6-North Ridge Country Club, 1pm shotgun start

Monday, July 22-Brier Creek Country Club, 1 pm shotgun start

August-TBD-Hasentree Country Club,

Monday, September 23-Treyburn Country Club, 12:30 shotgun start

October, TBD-The Neuse Golf Club, tee times starting at 12:30

Thursday, November 7-Lochmere Golf Club

*Some of these dates and details are subject to change.

Local Golf Tournaments

April 9, 9th HNC Charity Golf Tournament, The Preserve at Jordan Lake, noon shotgun start. More

April 22, 4th Annual North Raleigh Rotary Golf Tournament, Wildwood Green Golf Club, 1pm shotgun start. $350 for a team, $87.50 for individuals. Email me.

April 29, RRAR Annual Charity Golf Tournament, Devil’s Ridge Golf Club, 8 am check-in. Details

May 3, AIA Triangle Golf Tournament, Lonnie Poole Golf Club, 1pm shotgun start. Info.

May 13, Wheels4Hope Golf Charity Event, Wildwood Green Golf Club, noon check-in

 

As you may imagine, this is just a small sampling of the golf tournaments that are available this spring. I will add more in the future. If you have a tournament you would like listed here, please let me know and I will be happy to add them to the list.

Golf tournaments are a wonderful way to spend the day while giving back to a great cause. There are typically many opportunities to play golf throughout the area while raising much needed funds for causes that may or may not be dear to your heart. I would encourage you to plan to play in one or more tournaments this year. I have only won a couple of the tournaments I have played, but I have always had fun.