Top 4 reasons your property won't sell!

Yes, there can be multiple reason for a particular piece of property not finding a buyer.  However, they all fall into one of the following categories.  If your property is not selling like you planned then you need to examine the following four examples and get serious about your goals!  Some people will blame the market overall and that of course can play a major roll but property sells in good and bad markets alike.  So why is yours still on the market?  Let me explain.

Reason 1 - Price!

There is no substitute for the correct price!  If you get this step wrong then the rest of what you do will make little difference.  There is a price point for any and all property at which someone will buy it.  Hands down, it never fails.  If you got the right price then your property WILL SELL FAST!  I am not saying you need to give your property away but I am saying you must be realistic.  Sales data from your local area will determine a price at which the market is willing to pay for your property.  If you list your property for more than this number you can expect it to sit on the market for a very long time.  There is absolutely nothing special about your house compared to the others in your neighborhood that justifies selling it for thousands more.  Sorry to be so blunt but it's true.  If similar houses with similar square footage are selling for 125K - 135K and you price yours at 150K because it has a nice flat back yard you are living in la la land!  So ask yourself, "do I want to sell my house for the price the market is willing to pay or not"?  If the answer is no, then save your self a lot of hassle and wait until the sales prices in your neighborhood reflect a price that will satisfy you.  If the answer is yes then price your house according to the data and the condition combined for a price that is fair to all parties involved.  That brings me to the next reason.

Reason 2 - Condition!

The condition of your property is vital to a quick sale.  If the condition of the property is poor then expect to reduce your price accordingly.  A poor conditioned property sells for far less then the amount of repair cost.  Anyone willing to do all that work will want a handsome reward in the form of equity!  You can expect to sell a house that is worth 100K and needs 20K in repairs for about 50-60K.  There is no real equation for this but I have an extensive back ground in flipping houses and I know first hand that investors want a steal deal. 

Moving on here.  If your property is in normal to above average shape then price it accordingly.  For example, if your property has upgrades such as granite counter tops and upgrade bathrooms then you can afford to price your property at the top of the sales data range.  However if your property is in good shape but lacks the upgrades you should list in the middle to lower sales data range.  The point is to stay realistic and take out the emotion.  You are selling a piece of property and it is just like selling anything else.  The quality compared to price must be equal.  You cannot sell a simple pencil for $10.00 no matter how great of a marketing plan you may have in place.  So do yourself a favor.  Do a pre-inspection and make sure your house in great condition to show before anyone ever steps foot inside.  If you do this your sales price will be higher and the time in which it takes to receive it will be cut in half!

Reason 3 - Location!

This is actually a factor that not much can be done about.  It encompasses everything from lot size and shape to overall area of town.  You must emphasize to your potential buyers the reasons for buying in your area.  What is near by?  What is special about your neighborhood?  Do you have a community pool or park?  Is there great shopping near by?  Is the a Military base or any other large community complex?  Find out what is special about your area and advertise it to potential buyers.  In the end, your location is what it is and you cannot change it, so do your best to shine a light on the positives and leave the negatives in the dark.

Reason 4 - Realtor/Marketing!

This is a huge factor that you CAN control!  When choosing a Realtor make certain you hire someone with the passion it takes to sell property in today's market.  Not all Realtors have the drive it takes to get the job done.  There are thousands of Realtors in your area but only a handful work full time and have a great reputation.  Start by doing a google search on anyone you plan to interview.  You can find out a lot about people these days via the internet.  Pick 3 or more Realtors to interview and have your questions ready for them.  The most important question you can ask is "What is your marketing plan?"  If your Realtor doesn't have a plan then they may not be the right person for the job.  It is essential in Real Estate sales to make sure you have an effective marketing plan in action.  This plan must be multi pronged and drive people to view the property.  At the same time the marketing plan must collect potential buyers contact information so that the Realtor can follow up with them.  A successful Realtor must be great at marketing, negotiating and keeping the transaction under control from start to finish.  If you want a fast sale you need a specialist in marketing.  If you want great terms you need a great negotiator and if you want to close on time you need a great project manager.  The best Realtor for the job will be able to do all of things and advise you on how to make sure the first 3 reasons in this article are set up perfectly including the price, condition and location factors.

In Closing!

Don't fool yourself.  If your property has been on the market for an extended time period you need to evaluate the information I just gave you and do it with an open mind.  If all you focus on is your bottom line you will be greatly disappointed because buyers are very smart these days.  They have access to all the sales data via the internet and they are analysing it very carefully.  The average buyer is not going to give you one penny more then your property is worth via the data they have ascertained.  Be fair, be real and you will find a buyer in a reasonable time period.  If you need assistance with a sale or purchase you can contact me, Lee Newcomb, Realtor with Long and Foster at 804-928-4475.  I specialize in hard to sell properties and high end properties in Chesterfield, Henrico and Richmond Virginia. 

www.leenewcomb.LNF.com

written by Lee Newcomb, Realtor

Lee.Newcomb@LongandFoster.com

12 RED FLAGS THAT SHOULD RAISE CONCERNS

Buying? Here's why you need a home inspection

Indeed, more than 40 percent of the previously owned homes on the market have at least one serious defect, according to HouseMaster, a major home inspection company with offices in more than 390 cities in the United States and Canada.

"Virtually every 'used' home needs some repair or improvement," said Kathleen Kuhn, CEO and president of HouseMaster. "That's to be expected. But with today's high prices, you want to make sure that you are aware of any major problems in a house you are considering purchasing, and what it will take to remedy the situation."

Drawing from their own findings from more than one million home inspections, HouseMaster says the most serious home defects to be on the lookout for are:

1.       Cracked heater exchange

2.       Failing air-conditioning compressor

3.       Environmental hazards including radon, water contamination, asbestos, lead paint, and underground storage tanks

4.       Moisture in the basement

5.       Defective roofing and/or flashings

6.       Insect infestation -- termites or carpenter ants

7.       Mixed plumbing

8.       Aluminum wiring

9.       Horizontal foundation cracks

10.   Major house settlement

11.   Undersized electrical system

12.   Chimney settling or separation

Kuhn says most of these problems can be repaired. However, depending on the specific problem, the cost can be substantial, particularly if the defect involves one of the major systems. The cost could become a factor in whether you ultimately buy the house.

For example, a new air conditioning compressor could cost you up to $1,200. A new roof or repairs can cost at least several thousand dollars. A wet basement could cost up to $5,000 to remedy.

If you enter negotiations to buy a particular house, your agent should advise you to provide a provision for renegotiating or backing out of the contract if a home inspector finds major problems.

"If the property inspectors find that little or no corrective work is required, you have little or nothing to negotiate," say Eric Tyson and Ray Brown in their book, Homebuying for Dummies. "Suppose, however, that your inspectors discover the $200,000 house you want to buy needs $20,000 of corrective work for termite and dry-rot damage, foundation repairs, and a new roof. Big corrective work bills can be deal killers."

If repairs are needed, there are several ways to proceed if you still want to buy the house, the Dummies book advises.

1.       The sellers can leave enough money in escrow to cover the cost of repairs, with instructions for the escrow officer to pay the contractors as the work is completed.

2.       The lender can withhold part of the full loan amount in a passbook savings account until the work has been done.

3.       The sellers may give a credit for the work. Lenders may disapprove of this last alternative because there aren't assurances that the repairs will be made.

A home inspection usually costs between $250 and $400. Hire a qualified inspector. Try to get referrals from friends or anyone you know who has had a satisfactory experience with a home inspector. Also, look for affiliations with organizations like the American Society of Home Inspectors or the American Association of Home Inspectors. Both groups require its members to be certified, meet professional qualifications, and adhere to specific business ethics.

Once you make an appointment with a home inspector, it's important to be there.

Your investment of spending these few hours with the inspector could prevent headaches and save time in the future. As the home inspector examines the various systems and components of your home, ask him or her to explain what problems may be encountered down the road, what signs to look for, and how to prevent them. Try to learn how things work and how to maintain them. The inspector may also point out little flaws or oddities that don't measure up to being mentioned in the report, but may warrant keeping an eye on.

Says Kuhn of HouseMasters, "A pre-purchase inspection is your best protection against buying a home based more on emotions, rather than as a sound investment."

Written by Michelle Dawson

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