Why do homes expire?
First impressions are important
A recent article in the Washington Post explored the importance of photos in the home-selling process, and the results were astounding. The article, which examined data from various real estate sources (including the National Association of Realtors®, Trulia, Redfin, and real estate photography company VHT), found that 87% of buyers relied on photos to help them make a decision on a home, and 84% of buyers wouldn’t even consider a property that didn’t have listing photos. While any photos are better than no photos at all, the most benefit comes from professional home photos; professionally photographed homes sell 32% faster—and demand a 47% higher asking price per square foot—than listings without professional photos.
You can’t sell what people can’t see
Sometimes it just boils down to buyers being unable to get in and see the house easily. Some homeowners make it too difficult for buyers and their agents to come in and view the home.
It’s fine to have some limits. But if a homeowner requests that all buyers give 24-hour notice, and will only allow the house to be shown on Thursdays between 11:30 AM and 2:23 PM, that makes it pretty tough to go see.
The maid is on permanent vacation
It can be tough to keep your house spotlessly clean while it’s for sale. People wake up and run out of the house for the day, leaving some dishes in the sink, or beds unmade. That happens. It isn’t the worst thing in the world. But some houses are just a mess. Buyers and agents come in wondering how anyone lives there, or even lives like that. There’s stuff everywhere. It smells.
No matter how much imagination a buyer may have, it’s hard to truly look at a house that’s extremely cluttered, or downright dirty, and picture themselves living there.
Location, Location, Location
The location of a house might just be undesirable. If a home is located on a main road, or under power lines, or train tracks…or across the street from a firehouse…it can be harder to sell and may take some time for the right buyer to come along.
Supply and demand
If the market is “slow”, or a “buyer’s market”, it isn’t uncommon for houses to expire. Sometimes it’s just a simple matter of supply and demand. If there are a lot of houses on the market, and only so many buyers buying, there’s only so much you can do.
Sometimes it’s just a matter of buyer preference. A house could be easy to show, clean, and priced well against the competition. But if there’s only one buyer for ten houses that are equal in appeal and priced similarly, there’ll be nine disappointed homeowners and one happy one. That buyer may have just chosen the house they chose because they knew someone who lived on that street. Or liked the paint color, or layout a little better.
There isn’t much a homeowner or agent can do about this.
Price
You may have heard this before: In real estate, price isn’t always the problem, but it’s always the solution. Sure, a house could be worth every penny a homeowner is asking. It might very well be justified by recent comparable sales in the area.
But the price will always get a home sold. And if a home isn’t selling, it’s almost always due to the price not being appealing enough to overcome any of the above factors.
- It can overcome having strict showing times. If a homeowner wants to limit their house to being shown one day a week at a certain time… Fine. If you price the house aggressively, buyers will go out of their way to adjust their schedule.
- It can overcome clutter and messiness. It doesn’t matter how awful the house shows, or how smelly it is…if it’s priced appropriately for the condition.
- It can overcome supply and demand. If few homes are selling, and there are a lot of similar choices for buyers to choose from, a lower price will certainly make the buyer’s choice easier.
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