If you’re an Aussie homeowner you’ve probably heard almost 80% of capital city homes going to auction are selling. The majority of private listings are resulting in sales within weeks.
But what if your ‘for sale’ sign is gathering dust?
Or perhaps you went to auction and your property is one of the 20% that failed to find a buyer.
According to experts, there are six chief reasons why some homes – even in scorching markets – do not sell:
Real estate experts says this is the big cause of failed home sales in a booming market.
“In my opinion, the number one reason properties do not sell is unrealistic vendor expectations,” says Paul Bevan, Dream Financial Services’ Senior Advisor.
Strong selling market is no reason to inflate your price beyond comparable sales.
Vendors who believe strong selling markets are opportunities to inflate your price beyond comparable sales are sorely mistaken, he says.
“If the vendor thinks their property is worth way more than what the market dictates, then the property will sit on the market and remain unsold until the vendor is willing to ‘meet the market’ i.e. lower their asking price.”
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Jhai Mitchell from Elders Real Estate Toongabbie sees this happening occasionally in Melbourne’s current hot market. It’s a major no-no if a vendor really wants to sell.
“This still happens in a hot market as sellers start to get high offers and then they put the price up thinking that that can get more,” says the Mornington Peninsula agent.
“This kills the sale; people begin to think something is wrong with the property. They are right, there is something wrong with the house and that is the seller’s expectations.”
Kylie Harding, Director of Styled to Sell, has been a property stylist for 15 years.
She usually works on properties before they go on sale but says some of her jobs involve properties that are not selling despite a long time on the market.
“An overgrown garden, flaking paint, filthy carpets, bathrooms and kitchens, empty or overcrowded rooms all contribute to the fact that potential buyers can’t, or don’t want to, see themselves living there,” Harding says.
“Potential investors bypass it (the rundown home) too because rental potential while obtaining planning permits etc is low.”
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Do you know why you are selling? If not, you’re probably uncommitted to the sale.
Brisbane real estate agent and author Peter Hutton says this is one of the key reasons a home doesn’t sell when the rest of the market is booming.
Successful vendors will know their “love price” – “the point where a vendor’s desire and use of the money they’ll get from the sale outweighs their desire and usage of retaining ownership over the property,” he says.
“If a seller has not got clear on their ‘big why’, which equates to being under-committed to the sale, or the price they want to make it worth their while to sell is above what the market is willing to pay, even in boom times their property won’t sell.”
If a seller isn’t clear on the ‘big why’, their property won’t sell.
You only get one chance to make a big impression when selling a home so scrimp on your photos at your peril.
“In a crowded market, having fantastic photos is also very important,” Harding says.
“You want buyers to prioritise inspecting your property over others open at the same time, and overseas buyers also shop on the internet so great presentation equals great photos.”
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If your property is not online today how can it find a market of buyers?
Advertising and marketing are musts when selling homes and the days of a classified advertisement in the weekend newspaper bringing the masses – while still an option – is unlikely to find its target on its own.
“The quality of the marketing of a property … is one of the six dynamics that influence a property selling or not, and for how much,” Hutton says.