Q: We put our home on the market 3 months ago (auction) and had no bids. Since then we have put a price on it, but we haven’t received even one written offer. Our agent is a lovely lady but we just don’t seem to be getting anywhere. Any suggestions? Diana C.
A: There is nothing as frustrating for a home seller as their home not selling, and I’m sure your agent feels the same way too!
There are a number of possible reasons, but the most obvious is the price. If you have been through an auction campaign and had feedback at say $1m and you are holding out for $1.2m then maybe that’s your problem, especially if the market is not on the rise. We are often confronted with a potential seller who has based their price on what the house owes them, or what a neighbour’s property sold for. The sale price is determined by the buyer, not the seller I’m afraid.
Another reason can be your choice of agent. There is no doubt that a good agent will get you a better price than an average agent, and in a tough market such as now, this is even truer. We have written before about choosing the right agent for you, and as we say, it’s even more important in the current market. Certainly, make sure they have a good rapport, but also check their listings to sales ratio: How many properties have they taken to market this year, and what percentage of them have sold? Over 80% or 90% is good.
There may be a whole raft of other reasons you are still on the market. People will tell you that presentation makes a big difference, and it does. But the price will always trump any other reason: If your home needs a $100,000 makeover then it will be reflected in the price. Drop the price by $100k and you will very likely sell. If you want to spend the $100k doing the makeover you may find it easier to sell, but not necessarily for an extra $100k!
We’re sorry you haven’t managed to find your buyer, but keep an open mind and think hard about what you are willing to accept in order to move on.
Next week we will talk about what your rights are in terms of a listing with a sole agency.