90% of why homes don't sell is related to price. The seller is basically telling you that they can't get their price and they are frustrated and decided to sell on their own...
Sellers sometimes just don't listen to their agents and insist on listing at a price that's too high for the market and the property's condition.
If a price is too high, buyers won't request to see the property.
If the price is slightly high, buyers will come but won't submit offers.
If the price is spot on, then the right buyers will submit offers.
If the price is at a slight discount, there will be multiple offers.
Also, and most importantly, the best offer usually comes in within the first 2-3 weeks. If the property is properly marketed and there aren't any offers within the first 2-3 weeks, then it's time to reevaluate the situation.
That being said, there are some markets that are slow due to geography or other local economic issues. The way to look at the market is to compare the property to the days on market. If the average days on market is around 180 days, then the property at +150 days is probably okay. If the days on market is around 50-60-90 days, then at +150 there is a big problem with the pricing or the seller is unreasonably holding out for a specific sales number that isn't coming.
How is the price of a home determined? By looking at comparable homes that recently sold in the area. Usually within 1/2 to 1 mile radius. Same or similar style. Similar numbers of bedrooms and bathrooms and amenities (garages, pools, lake view). Adjustments can then be made for slight variations like 3 bedroom vs 4 bedroom...
As a side note, there are some buyer search parameter considerations. People like to search in brackets close to their budget. So, a $480,000 home will be between $450,000 to $500,000. If the house is overpriced at $520,000, as an example, anyone with a max budget at $500,000 won't see it.
Makes sense. Thanks Christopher
Another thing to remember is that they do keep more of that 15% in their pocket by not paying their old agent his 3%. Depends what number they had in mind and how close they were to it.
I had thought similar but thanks for reminding me. That %3 comes in handy when they know the price is getting lower and lower the longer the property stays on the market
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