1) It is in an undesirable location.
Often, trouble selling your house is due to its location. If your home is in a high crime area (especially those listed in the yellow to red areas on a crime heat map) it will be difficult to find buyers. Sometimes there are non-crime related issues such as bad smells; here in Wichita that could include proximity to a wastewater treatment plant, or a pet food manufacturing plant. Proximity to a highway or highly trafficked roads are also harder to find buyers for. This problem can become particularly bad here in Wichita, where homes in undesirable locations can have market values below $50k. These types of loans are known as “non-conforming” because they cannot be sold to Fannie and Freddy by the primary lenders on the “secondary market”. Many banks will not provide any non-conforming loans, so these types of homes become even more difficult to sell.
2)Its priced ahead of the market.
Often you and your real estate agent will try and be aggressive with your pricing. Unfortunately, this can sometimes result in pricing yourself to high compared to other comparable houses in the area. It is very important that you and your chosen real estate agent be realistic about the current market value of your home. If you are priced too high for too long there is a danger your house will become “stale” after too many days on the market, and potential buyers will be scared off from your home because they may think there is something wrong with it.
3)There is a major flaw in the home.
There are certain problems with homes most buyers don’t want to deal with, primarily because buyer’s agents will advise them (rightly so) against purchasing such a home. These could include: foundation and structural problems, water/flooding problems with mold issues, major roof damage, and knob-and-tube wiring. Homes with major issues will have trouble finding retail buyers, normally only an experienced investor will purchase a house with major issues.
4)It is at a high price point.
Sometimes the home is correctly priced, but the home is at a price point where the absorption rate for houses is lower. This is due to the lack of qualified buyers. In the Wichita, Kansas area homes priced above $400k are much slower to sell than those priced around the median house price of $155. If your home is one such home there is a very good chance it will stay on the market for a long period of time when compared to the median house price.
If one of these reasons sounds like it might apply here are some methods you could use to get your home sold.
1)Lower the price.
The easiest fix is of course, lowering the asking price for the home. This will attract more qualified buyers. The danger with lowering the price is doing so sets up an expectation it may do so again. Therefore, if you do lower the price it is often better to do so significantly rather than a little bit at a time; this lets you build up a frenzy of buyers which can then increase the price with a multiple buyer situation.
2)Fix up the Home.
If you have major issues in the home. One possible solution is to get it fixed. Make sure the people you have fixing up your home are licensed, bonded, and insured; often when it comes to rehabs you get what you pay for. For instance, may low cost rehabs will “fix up” the roof by just attaching new roofing shingles over the previous ones; this is dangerous though because the structure of the home was not meant to carry the extra weight of both sets of shingles. The limitations of this, of course, is you may not have the money to fix up your home.
3)Sell to an all Cash Buyer.
Sometimes the problem with selling your home is the buyer cannot receive financing due to some flaws in the home. If you are unable to fix up your home and you have a significant amount of equity in it then you may think of selling your home to an all-cash buyer. These are normally experienced investors who had the cash to buy problem properties and fix them up. The limitation to this is that you will not get anything close to retail price for your home. Investors must make money on the majority of properties they invest in, so they need to purchase the property at a deep discount.
4) Be the Bank (Owner Financing).
If none of the other ways work for you a great option very few people choose to exercise is owner financing. This can come in two different types: standard and wrap loans.Standard owner financing is when you own your property outright or very nearly so; the buyer will pay you a down payment and you will act as the bank with the rest of the equity you have in your house and the buyer paying you monthly until they pay off your property.