Tuesday, August 23, 2022 / by Amy Brown
It's still a sellers market...why is my home not selling?
More than ever before, pricing is so important.
With rising interest rates, buyers can afford less home for the money which means that the buyer pool for each home is minimizing. The best way to combat this challenge is to price a home strategically so that it gets noticed, shown, and offers made.
Seller Objections:
"But my home is worth that price" - Is it? A home is only "worth" what someone is willing to pay for it. And in a market that is still very hot, if your home has not gone under contract within the first week, an adjustment in price is needed.
"But my friend's house in _____ neighborhood sold in 2 days" - Real estate markets are like weather...they are local. The market in N. Asheville is not going to be the same as in Arden.
"My home has an updated _____" - Wonderful! Updated kitchens and baths sell houses! But does your neighbor's home have more square footage, more bedrooms, a finished apartment over the garage, a fenced in yard...all of these factors play into buyer attractiveness. Are you truly comparing apples to apples?
What happens when a home sits on the market?
With rising interest rates, buyers can afford less home for the money which means that the buyer pool for each home is minimizing. The best way to combat this challenge is to price a home strategically so that it gets noticed, shown, and offers made.
Seller Objections:
"But my home is worth that price" - Is it? A home is only "worth" what someone is willing to pay for it. And in a market that is still very hot, if your home has not gone under contract within the first week, an adjustment in price is needed.
"But my friend's house in _____ neighborhood sold in 2 days" - Real estate markets are like weather...they are local. The market in N. Asheville is not going to be the same as in Arden.
"My home has an updated _____" - Wonderful! Updated kitchens and baths sell houses! But does your neighbor's home have more square footage, more bedrooms, a finished apartment over the garage, a fenced in yard...all of these factors play into buyer attractiveness. Are you truly comparing apples to apples?
What happens when a home sits on the market?
Time on the market and sales price compared to listing price is highly
correlated; the longer the home is on the market the bigger the
discount from the listing price.
Homes WITH price reductions take 3 times longer to sell and sell for
approximately 10% less.
The biggest seller pitfall and barrier to correct pricing:
Psychologist, Richard Thaler, studied the correlation between how people think about their personal belongings versus items belonging to someone else. This phenomenon is called the endowment effect. Basically what this means is that as humans we think that...
Our stuff is more valuable than it really is
Through a seller's eyes, commonly our house looks like The Biltmore Estate where through a buyer's eyes it looks like a country cottage.
There are 3 ways the endowment effect impacts the sellers’ decisions.
The biggest seller pitfall and barrier to correct pricing:
Psychologist, Richard Thaler, studied the correlation between how people think about their personal belongings versus items belonging to someone else. This phenomenon is called the endowment effect. Basically what this means is that as humans we think that...
Our stuff is more valuable than it really is
Through a seller's eyes, commonly our house looks like The Biltmore Estate where through a buyer's eyes it looks like a country cottage.
There are 3 ways the endowment effect impacts the sellers’ decisions.
First, selling makes people nostalgic. Suddenly we begin thinking
about all the great memories that are associated with that house. This
makes the seller very emotional. Secondly, because the sellers feel so
positive about their house they assume that other people will see their
home the way they do. Third, often emotional sellers begin focusing
on what they are losing instead of what they may gain. A sense of loss
is a very strong emotion and causes the sellers to increase the price.
The end result is that sellers generally feel that their house will sell
for more than the market indicates.
In the end, I always urge my sellers to be open to hearing the truth about their home and the market, no matter how reluctant. Remember, that I am a third party with a fresh set of eyes that can look at your home through an objective lens. Also...it is to my advantage as an agent to sell your home for the most money possible! So try to listen with an open mind so that you can have an exceptional selling experience instead of a challenging one.
Any home, no matter what the condition or location, WILL SELL for the RIGHT PRICE.
In the end, I always urge my sellers to be open to hearing the truth about their home and the market, no matter how reluctant. Remember, that I am a third party with a fresh set of eyes that can look at your home through an objective lens. Also...it is to my advantage as an agent to sell your home for the most money possible! So try to listen with an open mind so that you can have an exceptional selling experience instead of a challenging one.
Any home, no matter what the condition or location, WILL SELL for the RIGHT PRICE.
