We've all seen them...
We all drive by them everyday...
We all feel for them...
Those stale listings that just sit and go unsold...
But why? Why are they still for sale?
Over priced? Poor location? No curb appeal? No staging? Poor condition? Knee high grass? Or just plain old bad luck? Which is it? Or is it a different situation for every one of them?
Well, frankly for me...I feel for the sellers... but, let my clarify myself......I feel for the sellers that truly have an interest in selling their home...BUT CAN'T!
Everyday I drive by the same 4 homes that have been for sale for over a year and one for over 2 years now. Let me use one as an example...
This particular home first went on the market here in Melbourne Florida in Brevard County. Our market 
peaked in 2005 and began a steady decline in 2006.
- Listed for sale in June 2006 with a real estate company for $269,000. In my opinion, 10% too high for the market.
- Home withdrawn.
- For sale by owner for 6 months at $259,000.
- Real estate company #2 listed it at $239,000. I viewed the home at an open house...the agent asked what I thought...I told her it needed new carpet, fresh paint inside, the rooms needed to be cleared out and opened up to get that 'musty' feel and smell out. The price was again 10% high for the current market. Remember, our market was continuing to decline.
- The listing expired and company #3 took it at $199,000. They had an open house and I visited. The agent asked me what I thought and I told him, the items from the previous company open house had not been been corrected. The listing expired.
- A discount company has the listing now. The price has been dropped from $199,000 to $188,900 to $164,900 and the house is still sitting on the market since June 2006 PRICED $105,000 LESS THAN IT WAS THEN!
- Today's list price is less than what similar homes in the area are selling for and no one is biting!
- The location is good, the floor plan is good, the curb appeal is attractive and there have been no less that 8 houses in this area that have come on the market and sold since this seller placed her home on the market.
We see it everyday, that home that doesn't get the careful consideration it needs; all the work MUST be done before the sign goes up. And the property should be priced carefully for current market conditions.
that for you
We keep telling our sellers about chasing the market and unfortunately it just sounds like Realtor talk for lower the price of your home. I am committed to not taking anymore listings from people who are not REALLY motivated. Lets see how well I do it. I figure I would rather have their listing the 2nd time around.
Sandy,
This is the type of thing that will drive a client crazy. Sometimes there are those that for some reason just don't sale. Why, there are different reasons, but I have seen some that I just don't know why. There aren't many, but there are a few.
Raleigh, I know...but I sometimes wonder how much of it is a seller issue or how much of it is an agent not insisting the home be priced properly and in show condition. It is frustrating for both agents and sellers, depending on each individual situation. Good thinking...I'm with you...would rather get the listing the second time around than waste time the first time. Stick to your guns -that's the way to do it! No point in having the listing if you aren't going to get paid. Best wishes to you and hang in there!
Hi Joshua and Kathy, I agree...I have seen and experienced homes that just don't sell. It happens every once in a while. I think that this home needed to be "show ready" to sell and I think that in this particular situation, it just was not done. And, I think it was priced too high for the current market, at all times during the listing. Now, that owner will have to sell below market price in order to move that property...you know the first thing that buyers ask is, 'How long has it been on the market?'. Thanks for the comment and have a great week!
Thanks for writing. Yes price is a factor but then something else sometimes kicks in called 'why hasn't this house sold?' It's sort of like Groucho Marx who wouldn't join a club who would have him as a member. Many people won't look at a house which has been on hte market for 6 months because if no one else has bought it 'there must be something wrong with it.' Veronica
Great post. Happens very often when sellers just refuse to listen to the professionals.
Hey Veronica, I agree. Some people just don't want that house that has been on the market for an extended period of time....what's wrong with it, is exactly the sentiment we hear over and over again. Sometimes, those handful of homes, in the end, turn out to be really nice little deals. Isn't it funny...consumer sentiment?
Wow that is not a pretty picture. Now that is priced correctly, do you think this home has difficulty obtaining home insurance? Are the taxes and insurance pricing out qualified buyers?
Hi Ron, Is it sellers refusing to listen to the professionals or is it professionals afraid to alienate the seller? It seems to teeter back and forth sometimes, doesn't it? In the past several years, when we were in a sellers market, agents didn't have to tell sellers to do anything and the house sold no matter what. Now, we are back to the days of providing a laundry list to the owners and request they complete the list prior to the house going on the market. I guess sellers and agents got spoiled.
Hi Mary, Yes, taxes and insurance have gone up, and we have seen a slowdown in qualified buyers for specific properties. Higher priced homes are sitting on the market longer. Our market time has increased across the board. Insurance on specific properties can be difficult to obtain here in Florida, especially if located on or near the ocean or the river or homes over 50 years old. The home that I mentioned shouldn't have a problem with taxes or insurance. I think that the home was overpriced for the area when it went on the market and I think that it was not properly staged when it went on the market. Have a great week!
I just had this conversation with my girlfriend who is a Realtor and I asked her if the two houses that went on the market the same time as hers are still for sale and she said yes. Asked her why hers went and there's are still listed and she simply said, "they didn't listen to me" I am listening to her. I am cleaning out my "extras" now, and then I will get a stager in and let them tell me how to get my house ready for sale. And then I will go to my friend and ask her to price it for quick sale.
We did the exterior, all overgrown shrubs gone, new landscaping, new viynal siding, new shutters, looks brand new from the outside and the inside is filled with 36 years of accumulation and I wouldn't think of putting it on the market for people to see my "collection".
Buyers ask how long a home has been on the market. If it has been on and off since 2006 and no one bought it, they think there must be something wrong with it that they haven't noticed yet.
Nancy, GREAT JOB! It sounds like you are headed in the right direction. You summed it up in one sentence...'I wouldn't think of putting it on the market for people to see my "collection."' Buyers want to look at a house, not at a seller's furnishings. Remember, when you are showing your home to potential buyers, it will look completely different than when you live in it day to day. Keep up the GOOD WORK and keep listening to your friend the REALTOR. It sounds like she's heading you down the right path.
Richard, I agree with you! Buyers always want to know how long a house has been on the market. That question can be the curse of death for a property. Even on houses that have nothing wrong with them. It is hard to overcome an overextended market time on a property. People figure "if no one else wants it, I don't want it either'. Thanks and have a great week!