Selling A Home

Top Reasons A House Does Not Sell

Have you noticed that some houses are not selling quickly?  Is there a house in your neighbourhood that has been for sale  for a long time and you are curious about the reasons why? 

In the Toronto real estate market it is not uncommon for us to get a bit spooked when a house is not selling quickly.  While there is not a standard time in which a home should sell, there are 3 reasons why  a home is not selling.

The common culprits are Condition, Price or Location. Let me explain:

Condition

If your house is outdated, requires investment to make it liveable or has major defects  it will be overlooked by buyers if not priced correctly.   

Not all buyers are looking for a turn key home to purchase, however, most buyers will sub consciously shy away from homes that are not clean, present as unsafe or have been neglected in the maintenance department.

If your home is outdated, do not expect that it will sell for the same price as a home that has been renovated.  Buyers will go through the house and start to add up in their minds the areas that require renovation or replacement. They will then attempt to justify the listing price against the costs of the renovations.

  • If the home requires major investments such as new roof, new HVAC, new electrical or plumbing, it should be priced accordingly.
  • If the home requires cosmetic improvements, do not under appreciate how minor improvements weigh on the minds of buyers when looking for a home.

Price

It is not uncommon for homeowners to still be looking at sale prices from last year and mistakenly thinking that the market value of their home is the same as it once was. The market will tell you what your house is worth, and if you don’t have any buyers, let alone viewings – your house is priced incorrectly.

There are 2 main points that you need to understand about pricing:

  1. Setting a sale price is based upon recent (*this could be a few weeks or a few months max)home sales of comparable properties in the close vicinity. But, there are outliers in sales that can be explained by external forces that I will speak to in another Blog and Video.

2. Housing Markets can change very quickly with little notice, as buyer intentions and  behaviour are influenced by external factors such as interest rate changes, geo/political unrest and government policy changes to the housing and rental markets at any of the 3 levels of government.  

Location

Location is one of the most important factors that buyers consider when house hunting. If your home is located on a busy street, or close to an industrial area or next door to a questionable property, you have to price accordingly.

There are other factors to consider when pricing according to location. Factors such as if the home is located on a corner lot of a busy street, the quality of the school district, the transit or highway access or the city plans for major construction in the area over the next few years. All of these factors can work against the sale of your property. Unfortunately, many of these issues cannot be fixed.  In a buyers market you can expect to price your home with any location minuses in mind.

There Is A Buyer For Every House

Sometimes we do see houses that are not selling and we do not know why.

If a house has been on the market for a long time, it can become stigmatized.  We do this subconsciously as buyers as we think that if no one else wants the property then neither do we.  our property.

Avoid the stress of having your house sit for sale on the market without viewings or offers by working with an agent who will price it correctly according to market value.

 

 

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