Why is my home not selling?
Have you thought about FLIPPING your own home?
Your listing hasn't sold right? You've gotten offers but they were so low now you're frustrated and stressed out. And you might have gotten the excuse that you're over priced BUT stop and think. Let's solve this now! Have you tried every strategy available? This short article is about two of the strategies. The first one is about the presentation of your home. How nice does it look on MLS? If it's really nice, sorry this article is not about you. Maybe you might want to check the comps again, or it's complicated but for now, I'm talking about the majority of the listings that haven't sold yet.
The following is seriously my best advice since 99% of my listings are sold I think I have the credentials to write this article. Yup! Since 2003 to 2019, pretty much 99% of all the listings I've put up have sold and I'd say 95% of those listings have sold under 30 days if not under 15 days. So I got this.
First of all, take some pictures of your rooms and look at it from a buyer's perspective. Does it look like the homes that you searched online and you get so excited you want to pick up the phone and call the Listing Agent right away? How much do you think it would cost to get the house cleaned, painted, and staged. Obviously this is a general question as there are probably 1 percent of homes out there that are just not fixable and it's going to be sold to a builder or some really excited family who wants to build a home from scratch. I'll discuss how to price those homes in another article later. But let me guess, you have a home that is livable and clean and you just don't understand why it hasn't sold. And your Realtor has suggested you should fix this and fix that and then put it on the market. But you opted out because you don't have money and so on. Get a short term loan or use your line of credit. Just stay calm, work out a couple of budget plans and FLIP YOUR OWN HOME !
Let me put it in mathematical sense.
Your property today is listed for $799,000 with 50 days on the market but you still insist on not spending any money on any upgrades. You think someone is going to buy it and fix it themselves. Fine. I wish you good luck and hope you get at least 97% of asking because as of now, I'm pretty sure those buyers are going in at only 90 - 93% if you're lucky. That equals to $743,070 which is $55,930 less. You still have to pay Realtor fees, let's say 4.5% to calculate your net. In Ontario Canada, your net after 13% tax is $705,284.89. Wow !
What if I told you that if we carefully understand market price first, do a full home inspection of your home, and add $35,000 - $50,000 in renovations which would have to include the inspectors' immediate repairs list, and PAINTING AND STAGING and at least 3 major upgrades, such as one of these: new roof shingles, replace the kitchen of just the countertop, a new bathroom or two? and (some) new windows! Or spending 50k will uggrade the whole house right? After all, you have done some upgrades already since you've owned this house I hope. Well that's another topic but as a homeowner you really should be upgrading something every year. 'Cause you never know when you're going to sell. If you're that seller and your home is just 50k away from a full upgraded house, you're ready to list for $899,000 if you finish your list. Trust me.
So you agree now and you're going to do the upgrades. You're going to call your Realtor and asked them to get you a quote for all these upgrades. Make sure you get quotes! Get 3-5 quotes and pick the guy with references, has a record of fulfilling his agreements, READY to do the work ASAP, and the price is reasonable, sign the contract and let's go. The second last step is cleaning and staging. Choose the semi-staging or full staging, depending on your budget. And last but not least, make sure you do the virtual tour HD photography. Now you're ready to list it for $799,000 again. In this market, don't be greedy! Just list it and get it sold. You'll be proud. You'll be confident. You'll probably sell for full price if not over asking. If you sell it for full price, and you spent $35,000, your net will be $723,370.85. If you spent $50,000 because your agent reassured you you'll MOST LIKELY get over asking then take that risk. You probably would have sold for over asking but if you didn't, you're still up. But you took a risk to sell it for $820,000 and you probably got $820,000 and good for you!
Are you the client that just spent 50k and make your home fully upgraded? Make sure you check the comps again. Is your home worth $899,000 now? then list it for $899,000 ! That's amazing! Congratulations! Your net is $803,285.85. Did you take two months to fix your home? Alright, consider just the interest on your mortage payment as the expense. Not the full principle and interest. And by the way you should only take 1 month max to do this. If the contractor can't do it on time, don't take sign that contract.
What to save more? Do you want to learn how to be your own contractor? All you have to do is subcontract each tradesman and you just saved 30%. This is simple! Have you planned a wedding before? It's like that. Book the flourist. Book the carpenter. Book the gown. Book the painter. Book the roofer. Book the window installer. Book the stager. Book the photograher. Just like that, things are getting done and your beautiful stunning listing is up!
If you're not in a contract I would love to give you a free market anlysis of your home and free advice on what you should be upgrading.
Hope you liked my article. I will answer any questions so long as you indicate your full name, telephone number and current address and start with this line: I CURRENTLY HAVE NO REALTOR REPRESENTATION. (Thanks for understanding!)
PS: This article was not intended to solicit sellers already in a contract.
PS: Here's another selling tip! If anything, re-list your home if it's on the market over 30 days! Most buyers have a negative perception when they see that the listing is over 30 days on the market - then you start believing your home is not worth it. Don't get bummed. Try again!
Written by: Teresa Vu, Realtor, MCNE, CLHMS on January 21st, 2019.
*Year 2013 Recipient of the International Re/Max Lifetime Achievement Award
*Year 2006 Recipient of the International Re/Max Hall of Fame Award
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