#1 Reason A Property is not selling:
Your Property is Priced Wrong
The most likely reason is that your listing is priced too high vs comparable competing and sold properties in your neighborhood based on size and condition. This leads buyers and their agents to believe that you are either not serious about selling, or that you have completely unrealistic expectations about what your home is worth. Buyers and agents must see VALUE in your home.
Property Value considerations
In addition to the list below, you may dig deeper by reading: 11 Things That Negatively Affect Your Home’s Value and What Sellers Need to Know About Buyers
High Property Taxes
High property taxes are even worse after the 2018 Tax Cuts and Jobs Act restricted State and Local Tax deductions to $10,000, meaning many homeowners with luxury or expensive to maintain properties are suffering at tax time.
If your neighbors with similar properties all have lower property taxes than you, then this is an even bigger problem. This means you’ve likely been over-assessed, in which case you should try to resolve this unfair disparity before trying to sell.
An Upcoming Levy or Special Assessment
One reason why a property might not be selling is because of a major, upcoming special assessment that is about to be levied. In MN, you are required to disclose assessments on your purchase agreement and even if you don’t, buyers typically find out about upcoming special assessments for things like roads and water/sewer during the contract review and due diligence stage through the title commitment.
Expiring Tax Abatements or Exemptions
This is a problem because buyers will know that increased property taxes are on the horizon, and good agents and buyers will research taxable values. This could be a status that only applies to people in your situation, like veterans, or new construction homes where taxes often take a couple of years to catch up with value.
Busy roads, gravel roads, bad views, bad smells, unsavory neighbors, schools, crime rates… you can read more here: Location, location location!
Seller Is Not Serious or Realistic
You must be unemotional when it comes to listing your home for sale. You must prepare your home for market by uncluttering and neutralizing your home. Make all minor repairs, have your utilities serviced and update your worn out paint and flooring. Show buyer’s you are serious about selling by showcasing your home. Be rational and objectively compare your home with similar homes that have sold in your area, as well as current listings for sale in the market. If you can’t make updates, you must have a price so competitive that buyers will overlook the problems.
Poor or Incomplete Marketing Exposure
Not having MLS exposure and international listing distribution effectively means your property is off market and unavailable to buyers’ agents who represent 90% of all home buyers.
Weak Real Estate Market
There’s nothing much you can do about a weak market except to price your property competitively vs comps.
Ready to get your house sold? Call Sarah First
IF YOU ARE IN AN ASSOCIATION or CO-OP
High HoA Fees, Common Charges or Maintenance Fees
Buyers will compare your association fees to those of similar communities. High than average fees from your HoA association, condo board or co-op board can be a sign of mismanagement, negligence or even fraud on the part of building management and board members.
No Certificate of Occupancy
One possible reason is that your building doesn’t have a Certificate of Occupancy, or because it only has a Temporary Certificate of Occupancy vs a Permanent Certificate of Occupancy.
A building that doesn’t have a Certificate of Occupancy means that it’s not legally habitable, which technically means any inhabitants can be kicked out by the city at will.
Some banks may not agree to finance a purchase in a building without a Permanent Certificate of Occupancy in place.
Building Has Outstanding Violations or Fines
Outstanding city violations and fines by various government agencies are often the cause of a home not selling. It’s even worse if your specific condo has outstanding city fines or violations vs the building because most contracts stipulate that units must be delivered with a title that is free and clear of liens, judgments, and violations.
Restrictions on Renting or Subletting
Most co-op buildings will restrict rentals in some shape or form which will deter investors and anyone who may need to move.
Onerous Purchase Application and House Rules
A tedious co-op board approval process, purchase application or co-op house rules will turn off many potential buyers.
How do you resolve these issues?
Hire a full-time, professional, REALTOR with current market training that specializes in your area to advise you on preparing your home for the market, price it properly and expose your home to the largest possible market.
Ready to get your house sold? Call Sarah FirstWant to browse more home seller tips?
- Are you required to get a pre-sale home inspection done?
- How can you correctly price your home for sale?
- FHA LOAN APPRAISAL GUIDELINES (What the Appraiser Looks for)
- Preparing To Sell
- What is my house worth?
- Why hire Sarah Marrinan?
Did you know that not all properties qualify for the same financing programs? In addition to the buyer needing to apply for the loan, the property may also benefit from special programs or be restricted to certain financing based on its location, condition and price.