Buyers regularly ask me why a house is still sitting on the market. Sellers ask me what they can do to avoid being on the market for an extended period of time.
Here are four reasons a house may be sitting on the market and what sellers can do to avoid it.
1. Price
Predominantly, and almost always, it’s price. Price with a capital P.
Your list price truly matters. We need to be within roughly a 4% to 6% window of true market value for us to expect a reasonable offer. If we’re not within that range, the house may sit on the market, and the offers that do come in can be considerably lower than what we may have seen if the property had been attractively priced from the beginning.
The goal is to price the home in a way that entices buyers while still protecting the seller’s value.
2. Condition
Condition is second to price.
In this market, I’m finding that buyers are very aware of what it costs to complete renovations, repairs and other projects. Frankly, everyone is incredibly busy, so the condition of your home doesn’t just drive price. It also drives time on market.
Painting, landscaping, cleaning and minor repairs can all go a long way toward delivering a clean product to the market before we list. Updating kitchens and bathrooms is typically not worth the time and energy solely for the purpose of selling, but fresh paint, improved landscaping and taking care of small repairs can often help deliver a stronger offer more quickly.
3. Additional Inventory
Additional inventory is another reason why houses may sit on the market. For example, when a property is initially listed, there may only be three homes in Middletown within a similar price range. If we reach a little too high on the list price and 45 days later there are now four or five competing homes, the market has changed around us. Meanwhile, some of those competing properties may already be under contract.
This is a function of pricing within the marketplace and how your property is bracketed against the surrounding options in its price range. Buyers are always comparing your home to what else is available. That makes it important to continually understand where your property sits among the competition.
4. Price Again
The fourth reason your house may be sitting on the market is, once again, list price. You want your buyer to be truly invested in the property and to appreciate the value of the home you’re delivering. You want to be priced in a way where a buyer feels like they don’t have the choice to wait another week.
The reaction you want is:
“This is the house. Let’s make it happen and do whatever it takes to make sure we get it before someone else does.”
That is the right price point to be in.
Pricing Is More Art Than Science
Pricing is more of an art than a science. It’s about discovering what can help your home stand out among its peers without leaving money on the table. That’s one of the differences between a CMA from an experienced Realtor and an appraisal.
A Realtor who understands the local market will know the current market temperature for your specific property type and price range. That includes understanding current inventory, buyer activity, competing listings and how buyers are reacting in real time.
Listen to your Realtor’s advice on pricing, staging and listing preparation, and you put yourself in a much stronger position to sell efficiently at the right price to the right buyer.
Looking to Sell a Home in Newport County?
I’m Jeff Brooks with Hogan Associates Real Estate. I’ve been selling real estate on Aquidneck Island for more than 17 years, with nearly 400 transactions and more than $200 million in sales.
I grew up on Aquidneck Island, graduated from Saint Anselm College with a degree in Business and Finance in 2007, and now live in Newport with my wife, Marina, and our two children.
My approach to real estate combines market data, local knowledge and personalized strategy. Every property is different, and every seller deserves a pricing and marketing plan built around their specific home, goals and current market conditions.
If you are considering selling a home in Newport, Middletown, Portsmouth or elsewhere in Newport County, understanding where your property fits in today’s market is the best place to start.
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