[VIDEO] Why Is My Home Not Selling?
- Home Owners Of Kedron & Surrounding Suburbs -
Welcome to "The Big Q" where each week I will answer one big question that I hear every day from property owners.
This week I look at a BIG potential issue.
- Why Is My Home Not Selling? -
Key points I discuss:
- Potential Issue 1 - Significant Issues or Defects
- Potential Issue 2 - Rubbish Agent
- Potential Issue 3 - Price!
Check out my five top tips to add SIGNIFICANT value to your home before you go to market! https://bit.ly/3i4YCJc
Thanks for tuning in!
Daniel Hooper - 0424 585 391
Hi, I'm Daniel from One Percent Property coming to you on Sunday, the 6th of September, 2020. Welcome to The Big Q. The Big Q is a weekly segment where I answer one big question that vendors and homeowners ask on a regular basis to help you become a more informed vendor and more informed homeowner, and to help you get a better price for your property when you go to sell.
My big question this week is: Why isn't my property selling? That is a huge question that obviously people that are struggling to get their property moving ask real estate agents. Now, it's nothing worse than being in that situation. It is a truly stressful situation. And hopefully these three points will help you avoid getting in that situation when you go to sell your home.
There are three big reasons why your home is not selling. And those are, one, there is a significant issue with the property or the marketing. Two, you are working with an agent that is subpar, that is not doing their job properly. You're working with a rubbish agent. Number three, and the big one, is price. Probably 90% of the reason the properties do not sell is price. So let's look at these three issues.
A significant issue such as structural damage, it's in a flood zone. Now I've got to just make a sort of side point with that, that any property will sell if it's at the right price. Price overrides all of this. Having said that, if your property has a significant issue, such as flood zone or main road or structural damage, it is going to sell at a much lower price. You can't expect your property that's got structural damage or is in a flood zone to sell at the same price as the one down the road that's a similar house, but without that significant issue. So price overrides all of this, but a big reason that your property might not be selling is it has an unresolved significant issue.
Also, it could be poorly presented and poorly marketed. A property that's fully staged and looks beautiful is obviously going to sell at a much higher price than one that is, say, a hoarder's house or is full of rubbish. Also, the photos. If you've got photos off your iPhone, and someone else has got professional photos, your property is not going to sell at the same price even if the houses are very similar, because they're going to get more people through the door, they're going to get more inquiries because they have put that best foot forward and they've got the really good media. It makes a huge difference.
Number two is the agent is not doing their job properly. Now, this is obviously very, very important, and this is why it's so important to really consider every aspect when you're choosing your agent. Something such as follow up. How many people have been to a property inspection and then never heard anything from that agent? Now, look, a lot of agents will say, "Yeah, but if they're a keen buyer, they're going to call me." Fine. That's true. But what if they're a buyer that was sitting the fence, um-ing and ah-ing about it? You follow up, you talk to that buyer, you have a conversation, give them the positives again, suddenly they're interested and they're putting an offer in. Sometimes it can literally be a conversation that changes whether you get an offer or not.
It's also really important that the agent has a really, really in-depth understanding of the property they're selling. Every time I'm selling you a home, I go through with the vendor and make sure I know every single aspect, so that when people ask me questions, I can give them the correct answers. I was at an inspection a few weeks ago and I asked the agent, "What is the zoning of this property? Is it development property?" He said, "CR1," which is character. Now, it was not CR1. It was Residential A, which is a massive difference. Now, as a developer, I could have walked out of that and gone, "Well, CR1 doesn't work for me. Residential A might have. CR1 doesn't." So there's potentially a loss of sale just by having the wrong information there. So it's super important that your agent obviously knows what he's talking about and that he also really has an in-depth understanding of your property. If he doesn't ask you to take you through your home and point out every little detail so that he understands your home as well as he possibly can, then you might be using the wrong agent. It's really, really important to get that part right.
Now, point number three, more important than anything else, is price. You have to remember the property price pyramid. At the bottom of the pyramid is a low price for your property. There's going to be a lot of people that are going to see value in your property at that price. As we start to step the price up, fewer and fewer people will see value, and your premium buyer is the guy standing at the top that sees the most value and will pay the most money for your property. But if you're asking a $100,000 dollars more than that premium buyer sees value, I can almost certainly say you are never going to sell your house. It's just never going to happen.
I've seen properties and I've spoken to vendors that where the property has been on the market for three, four, five years, and they're going, "Why is it not selling?" And it's just as simple as that the exact same property down the road sold for 650,000, and you're asking 850,000. That is why your property is not selling. So when it comes to price, it's really important, and your agents should be able to talk you through this, but you can look at the statistics and you can pretty clearly see whether or not you're out of the ballpark, you're in the right range, or you're right on the money.
For instance, if you have your property on the market for say three or four weeks, and you have three inspections, simply, unless it is being very poorly marketed, you are out of the price range, you are in the wrong level, because people are not even seeing enough value to inquire. If you're getting a lot of inquiries, but people are not following through to inspection, or during inspection they're just not even coming back, there's no interest, you're probably close to the ballpark, but still a little bit high. Having said that, I had a property where we had 164 inquiries, over 80 inspections, and although a lot of people were trying to get a lower price, the feeling was that it was in the right range. So we stuck to our guns and it took us five weeks, but we got the price. So it's all about feeling out the market, feeling out of the feedback, but as an agent, or if you're employing an agent, you need to be getting market feedback, biofeedback, statistics feedback. If you're not getting all this information back from your agent, then potentially you're working with the wrong person.
So those are the big three reasons why your property is not selling. Obviously, a significant issue; working with a poor quality agent; or the big one, it is overpriced. Almost always, it is the price.
Thank you so much for tuning in this week. Hopefully that helped and you found that interesting. If you would like to get access to my five big tips to add significant value to your property before you go to market, it's a free article. Please click the link at the bottom of this video. Otherwise, I hope you have had a fantastic week so far and I hope next week is even better.