The reason why the house is not sold
I've listed a number of big things below that could be the reason for not selling a house or selling it in the best possible terms. Many of these things can be categorized into three “Ps”.
Preparation, Pricing, Processing
And among these three, the most important is Pricing. (Real estate is complex, but simple.) If you understand the following about Pricing, 90% of home sales are already successful. The good news is that this is a simple and easy to understand principle. If you do this well, you can sell your house well and you don't have to worry about it. The bad news is that in practice it is not easy for sellers to apply for a number of reasons.
Why it might be important in general
I rejected Offer, who first came in, and that was the decisive mistake.
It didn't make it easy for buyers to come and see the house at any time.
During the escrow period with the buyer, we had a useless emotional fight.
It seems that the listing agent didn't properly answer the buyers' inquiries.
The listing price was too high.
You set the listing price too low at first.
The listing agent didn't do public marketing properly because he was looking for his own buyer.
The commission for the buyer's agent was too low.
During the inspection, there were too many problems at home, so the buyer was missed.
We haven't been able to post attractive photos on the Internet that will attract buyers' attention.
I was bargaining too hard and missed a buyer.
We should have checked more closely the buyer's financing ability.
After roughly working on the contract and the Disclosure, I was frustrated.
The buyer changed his mind at the last minute and missed all other good buyers.
The listing agent didn't communicate well, and the bargain was too low.
The listing price should have been adjusted slightly lower, even in the middle.
I couldn't make a good impression on buyers because I couldn't decorate my house.
The listing agent did not work hard and left it unattended.
I met a bad buyer, struggled with my heart, and eventually couldn't sell my house.
Overprice and persistence
Sellers' #1 mistake is sticking to Overprice. The keywords here are both “Overprice” and “stubborn”.
In our experience, approximately 70-80% of sellers believe their home is worth more than it really is. There are various reasons, but in a word, it is because of the anticipation that we will be able to receive even a little more.
If you stick to overprice, it's easy to end up selling your home at a lower price than if you initially offered it at an affordable price. Houses on Overprice almost without exception follow the steps below. After waiting for a month or two, if the offer doesn't come in, the price is lowered. And buyers put in offers that are lower than the lowered price. It's a house that no one touches, it's easy to see. Even if a buyer who is not familiar with the local market puts an offer at a high price, there is a high probability that the contract will be broken in the end. Sometimes they get appraisal, and sometimes they can't bear the buyer's regret.
On the contrary, if the house that just came out is priced at an appropriate price, it makes buyers nervous. A slight premium is added as the invisible competitive sentiment and the resulting auction atmosphere are created. Many people think, “If you start high at first and then lower it, it’s all right,” but that is the biggest ambush of home sales. If you stick to the high price by adding one more step, it's easy to sell your house at all or under bad conditions that are premium and something.
To keep sellers from falling into the temptations and traps of Overprice...
Accurate Market Analysis
The best way a seller can do it is to look around the houses around them from the buyer's point of view. And you have to meet the agent well. First of all, you must be an agent who can analyze market prices well, and you must be an agent with conscience and courage to tell you exactly as it is.
Ideally, start with a fair price from the beginning. However, if for any reason it is determined that you have started marketing with Overprice, you should lower the price as soon as possible. If you start to "stubborn" in this part, it becomes a problem from then on. The problem is not the high listing prices, but the corresponding high expectations of sellers. Once settled, the “expectation” is seldom lowered. If you feel the need to adjust the price, it is better to do it within at least a month, and it should be drastically lowered to the level that you think is the right price rather than little by little.
Respecting buyers' “judgment”
It is the buyers who decide the price of the house. When a lot of offers come in, there are times when they come in 10 pieces each, and in that case, you can see an interesting phenomenon. Almost without exception, this is the pattern. 2-3 out of 10 come at a ridiculous price. You can ignore that. The remaining 5-6 come at about the same price. As if buyers gathered together and made an appointment...
Sellers should think well here. If you think about it this way, you are almost without exception. “The price of my house is the price that the 5-6 buyers who do not know each other at all offer a common price”. Since the price in the seller's mind is often higher than that, the seller's concerns begin. Here, even if it is difficult, you can sell your house well if you accept the buyers' opinion. However, if you insist on the seller's thoughts until the end and ignore the buyer's “judgment”, all sorts of problems arise. In the end, it is easy to miss out on all good buyers and endure enough to endure and sell the house at a price that falls short of the market price.
One good news is that out of 10 offers, usually 1-2 of them come in slightly higher than the price suggested by the average buyer of 5-6. If you grab those 1-2 offers (with additional strategic bargaining of course...) without regret, you're selling your house well. (Of course, in a general situation, 10 offers do not come in and you cannot see such a pattern. However, the basic principle that buyers ultimately decide the price of the house remains unchanged.)
Copyright 2021 Boston Choi All rights reserved.