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36 | MAY 14, 2014
FLATHEADBEACON.COM
REAL ESTATE
MONTANA LIFESTYLES
Why Isn’t My Home Selling?
If your answer is price, you’ll be right a good ma-
jority of the time. If your home isn’t selling, buyers
think the value of your house is less than the price you
want. For all the time and efort that goes into buying
and selling, the economics of the process are relatively
simple. Anything is only worth what a buyer is will-
ing to pay and a seller willing to accept. Although the
economics may be simple, arriving at that magic price
is diicult. Just think of the cost, time and energy that
companies put into pricing a product so it succeeds in
the marketplace. It’s no diferent in real estate.
If you’ve taken the time to educate yourself on the
local market and are diligent in hiring a professional
agent, and are willing to listen to her, you can get a lot
closer to the magic number. But you are setting your-
self up for disaster if you don’t do your homework and
go with what you “feel” your house is worth. Worse yet,
is interviewing agents and choosing one solely because
he or she says you can get more than what the other
agents think the house will sell for.
These are some of the most common mistakes sellers
make when setting a price:
What you want to make from selling your home SHUTTERSTOCK PHOTO
means absolutely nothing to buyers or the market- listing that’s been on the market so long buyers decide Buyers often talk of “connecting” to a house. This
place. So setting a price based on what you want so you there is something wrong and steer clear.
is not likely to happen if your house is not company-
can retire, move up, start a business, etc. will almost The solution is to get the price right. This is done coming-over clean and ready to show like a model.
certainly fail.
by using what is called a Competitive Market Analysis This goes for the outside as well. If you don’t want to
Your neighbor sold for $200,000 last year so you (CMA). If you’ve hired the right agent, this is the irst put the efort into doing this, then you’d better adjust
want $210,000 because you “know” your house is bet- folder out of their briefcase when you meet to list your your price to compensate because buyers will only con-
ter. Regardless that the market dropped 5 percent since home. A CMA breaks down the sales price of homes sider your house because it’s a good deal, not because it
your neighbor sold. Nearly every owner thinks their that are similar to yours in location, size, age and con- “speaks to them.”
house is the best on the block, or at least better than dition. Your agent will also consider the listing prices of If you make it diicult for people to see your prop-
any of the ones that have recently sold or are on the homes on the market, but these are used more to iden- erty, then chances of a sale at the price you want drops
market. Unfortunately for sellers, your opinion doesn’t tify the competition.
considerably. Selling can be a nuisance, but it’s a nec-
carry any weight with buyers. Only their opinion mat- Not every reason your home isn’t selling will be the essary one. If you don’t allow a lockbox or require ap-
ters.
price, although they will be related to it. Here we have pointment-only showings, you are the culprit to the
Even if it’s been shown that your house will likely that value vs. price issue. If buyers perceive imperfec- house not selling.
sell for around $250,000, you insist on listing it for tions in your listing, they will want a discount, so if It’s not always the seller’s fault that a house isn’t
$275,000 because “you never know, someone could they’re not buying, your price is not discounted enough selling. Sometimes the market changes and buyers dis-
come along who just has to have it. Besides, if we don’t for buyers to believe the value to them at least equals appear. Maybe a new home development has opened
get any bites we can always lower the price later.” The that of your price. This is why it is imperative that sell- nearby and they are “stealing” the customers. Or may-
problem is it won’t take long for buyers to realize your ers do everything they can to eliminate any issues buy- be you’ve received bad advice from your agent. Any of
price is unrealistic and think you are, too, and won’t ers may have with their house before listing. Obviously, these can afect whether your house sells, which means
want to deal with you unless the house is “a steal.” you can’t do anything about location, or that you have you need to consider the reasons and make the neces-
The listing languishes, so you drop the price, but not just one bathroom. You and your agent should have fac- sary adjustments.
enough, it sits even longer and pretty soon you have a
tored these drawbacks into the listing price.
Submitted by the NMAR PR Comittee
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