Few things are worse than listing your house for sale only to see little to no interest from qualified buyers. The situation becomes even worse when you’ve already made plans to move on. You may have placed a deposit on a new house and were counting on this sale. Or you’re just tired of maintaining and carrying the costs of a large home and were looking forward to a smaller place.
In any case, it’s frustrating when your own transaction doesn’t go according to plan. Much of the disappointment from sellers stems from a misunderstanding of today’s fast-changing and highly nuanced market. In this post, we’ll examine some of the reasons why a house might not sell. More importantly, we’ll give you a solid action plan of what you can do about it.
The first step is to take a step back and think about why your home may not have sold. Chances are, it boils down to one or more of these five reasons:
1. Unfavourable Market Conditions
In spite of what you hear in the news about housing being in high demand, market conditions are not always optimal. High interest rates and inflation can put a damper on buyer enthusiasm and reverse even the most hectic seller’s market. In fact, this is exactly what happened as we went from the insatiable demand of 2020 to the influx of inventory and lack of buyer activity we see today.
But before the gloom and doom catches up with you, it’s important to remember one thing. Just because market conditions are not optimal doesn’t mean there are no buyers. No matter what happens, there will always be homeowners who sell successfully. The key to being one of them is to carefully plan and strategize each step.
Understanding the market is essential for selling during challenging conditions. The resources below will help:
- What Is Going On In The Etobicoke Real Estate Market Today?
- What to Look For in a Real Estate Agent When Selling Your Home
- Can You Earn More Money By Staging Your Home?
2. Unrealistic Pricing
As of early 2024, the Etobicoke market has almost five times the number of homes for sale than homes that SOLD in the last 30 days. At this rate, it will take nearly five months to deplete the current inventory available.
This is why it’s so important to understand the nuances of the market. In Etobicoke, we are now in a buyer’s market where the buyer has the upper hand. If you want to sell, you must make qualified buyers see incredible value in your home.
In other words, your pricing must be on point. Since the market can change so quickly, it’s essential that your real estate agent use only the most recent and accurate statistics to arrive at the value of your home. Using data from an old home evaluation virtually guarantees that you will be overpriced and decrease your chances of a successful sale.
3. The House Stayed Too Long on the Market
It’s common real estate wisdom that a house that sells quickly will typically earn the most money. A brand new listing generates the most excitement from potential buyers.
If your house doesn’t get enough attention in the beginning, it can become a stale listing. Then potential buyers lose interest and may even worry that there is a problem with the property. Your house may earn less than you anticipated, or it may not sell at all.
4. Incomplete Home Preparation
In a fast market, you want your house to look its best so you can make the most out of the favourable conditions. In a slow market, you need your house to look its best in order to sell it at all.
Thorough cleaning and decluttering are essential. Minor repairs and painting can add perceived value so your house attracts the attention of potential buyers. From there, expert-level staging and photography can help you seal the deal even when buyers are slow and hesitant.
5. An Under-Promoted Listing
If your real estate agent doesn’t properly promote your listing, buyers won’t know about it. A “For Sale” sign on the lawn and exposure on the MLS® may be enough in a hot seller’s market. However, in less optimal conditions, you need every advantage you can get, including consistent open houses, and extensive promotion both online and offline. It’s even better to work with an experienced agent with an excellent reputation and a large database who can network to find a buyer.
For buyers, the time is now. The posts below can help:
- How Can Home Buyers Find A Great Deal In Etobicoke?
- Can You Still Buy A House In Etobicoke For Under $1 Million?
- How To Tell If Your Dream Home Is A Money Pit Or A Worthwhile Investment
What Are Your Options Now?
When your house doesn’t sell, the first thing to do is analyze the reasons why. This gives you a chance to spot any flaws in your strategy and come back to the market with fresh eyes and a new approach. Once you gain a deeper understanding, your next step is to weigh your options and create a new plan of action. Here are a couple of paths forward you might decide to take:
1. Relist Your Home
Refresh your selling strategy and return to the market with a plan to attract the most qualified buyers. You’ll need to be honest with yourself about why your previous plan didn’t work and make the necessary adjustments. This time, you’ll come back strong with a realistic market price, the proper home preparation, and a comprehensive marketing campaign.
2. Rent Your Home and Sell Later
If your circumstances don’t allow you to wait to move to a new home, you still have one viable option. Buy your next house and rent out your existing property. Once the market changes, you can put it back up for sale.
The advantage of this option is that your equity will increase when housing prices rebound. However, you’ll now have all the responsibilities of being a landlord. You will be able to list your house at a later date, but selling with a tenant has its own challenges. Plus, your home may need repairs and upgrades once your tenant leaves to get it ready for the new market.
3. Wait for the Market to Rebound.
Nothing lasts forever, not even a slow market where buyers have all the advantages. Eventually, interest rates will decrease and more buyers will resume their search for a new home. Once competition returns, housing prices will begin to increase.
The problem is that no one knows when interest rates will come down or how much they need to drop to see any significant change in the market. Waiting is only an appropriate plan if you are very flexible about your timeline.
In addition, you actually may be in a more advantageous position than you realize. For example, if you are upsizing, a larger home costs less in a buyer’s market. How can this be?
It’s because there’s less of a difference between what you pay for a larger home and what yours sells for now. This difference will more than offset the fact that your current home has decreased in price.
Real estate can be complex, and no two paths are ever alike. Your best option depends on your financial situation and your reasons for selling. A qualified real estate team can open your eyes to possibilities you aren’t even aware of while evaluating every option for you and your family.
Are you ready to explore the hidden opportunities available in the current market? We are happy to guide you through them all. Reach out today to 416-450-5900 or email contact@thompsonsells.com for more information.
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