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TIP #13



Why Hasn’t It Sold?


One reason many private sellers end up listing with realtors is that they simply get ground down emotionally by lack of response to their ads or by a multitude of showings but no subsequent offers.

So don't let the frustration of waiting on unresponsive prospects build to the point where you lose confidence in your ability to sell. Keep control of the situation by setting yourself deadlines by which you'll evaluate your progress. Keep your larger objective in mind, and make whatever adjustments are needed to get a sale!

Your buyers are out there. To sell, you simply have to deal with any factors that may be preventing you from attracting their attention and offer:

  • market conditions

    Ask a few realtors how the market is behaving. How long is it taking properties to sell? What's the current spread between asking and selling prices?

    If the market is really hot, you can allow yourselves a relatively large negotiating cushion, and possibly risk purchasing your next home (with as distant a possession date as possible) before selling your present one.

    But your best bet in a really slow market may be not to sell at all, until conditions improve. Can you rent the property instead?

    If you must sell, be prepared to exploit your one big advantage: use the saved realtor's commission to reduce your asking price.
     

  • location

    You can't change your location. Beyond ensuring that your property is as showable as possible, all you can do with regard to an unattractive neighborhood - a busy street, a car lot next door, etc. - is to be as objective as possible on price and stay focused on your top priority: to complete the sale and move on.
     

  • time

    Private sellers are uniquely vulnerable to dashed expectations. It's your home you're offering, and you take it personally when prospects don't seem to appreciate it.

    Again, it helps to be aware of the average time it's currently taking properties to move. Lower asking price = quicker sale; average price will, in a normal market, mean several months advertising, answering calls, and showing the property. Expect it and try to be patient.
     

  • terms

    Can you promote a sale by helping purchasers with their out-of-pocket expenses? Including all appliances, even if they're not exactly new, may make the difference with cash-poor prospects. And what about offering help with closing or moving expenses?

    Anything you can contribute will help you stand out from the competition. More involved options might involve talking to your banker about an interest rate buy-down if your mortgage is assumeable, or even carrying a second mortgage yourself. (See our mortgages section for other ideas.)
     

  • condition

    Elbow grease can definitely ease the way to a quick sale, and it doesn't have to cost a lot. See our sellers library, for example, for tips on what renovations pay off, and our essay on preparing your property to show.
     

  • exposure

    You may be offering the best bargain on the market - but so what, if no one knows you're there? Review our piece on advertising, set a realistic budget for promotion, pay for a professional-looking lawn sign, and take full advantage of the Internet's ability to deliver full-colour and comprehensive details to prospects around the clock.
     

  • price

    The simple fact is that, in the end, price reconciles all the factors, positive and negative, affecting the marketability of your property. If you have addressed all the factors mentioned above and are still not getting offers, lower your price!

    You're willing to take $150,000 for your property and your market evaluation says it's worth $160,000. So why are you asking $172,500? Cut your price to $159,900 and you should attract attention in a normal market. Drop it to $157,500 and you may get an early sale and still come out several thousand dollars ahead, relative to listing with a realtor. Bite the bullet, ask $154,900 to get even quicker action and get on with your life.
     

The point in all of this is that selling real estate is not rocket science. A main benefit realtors provide is their focus on the reality of the market place, and on your main priority: a sale!

Cultivate that objectivity, do what needs to be done, and you'll join the thousands of Canadians who sell privately every year!
 


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