By loanDepot Staff Writers
In today’s hot real estate market, it can be hard to imagine a home not selling. But it happens – and more frequently than we may like. Real estate experts agree on three main reasons a home fails to sell: price, exposure and appeal.
What do you do when your listing isn’t moving? You’ve probably already tried reducing the price. In fact, a recent study found that most listing agents (58%) turn to price reduction when a home isn’t selling. But price isn’t always the culprit. You may need an entirely new strategy.
At loanDepot’s Retail Lending division, it’s important that we provide our real estate partners with the tools and loan products they need to complete a transaction. That includes a proper selling strategy.
Educate your sellers and yourself
When you take a new listing, pricing the home accurately will have a major impact on how smoothly the sale goes. But as we all know, buying and selling real estate isn’t always smooth. Sometimes the seller’s emotional attachment can cloud the transaction. Or the buyer’s contingencies may not be in line with current market conditions.
Either way, educating your sellers early on current trends can lay the groundwork for a swift sale and help improve the process for all parties involved.
Before signing a listing agreement, talk to your seller about the current market. That should include housing supply, average number of days on the market, comps in the neighborhood and other area statistics, such as active and expired listings.
This is also the time to approach the subject of a price reduction and what needs to happen should circumstances require it.
Price reduction shouldn’t be your first strategy
While reducing the price on a home is effective in moving it off the market, other options should first be exhausted. You should survey potential buyers and their agents to determine what’s pushing them away. Hint: It’s not always price.
Talk to your seller about staging the home or maybe doing a few repairs. Additional marketing or holding more open houses may help. Or consider an incentive such as a credit toward closing costs or cash back once the sale has finalized. Get creative.
Look at the competition. If other homes are selling or not selling, compare those listings to yours.
If all else fails and the home still hasn’t moved, it’s important that your seller feels comfortable with the fact that price is the determining factor. It’s now time to talk price reduction. This is where the price reduction guidelines included in your listing presentation will come in handy.
Come to the table armed with the guidelines and an updated market analysis. From there, the key to success is to remain calm and stay the course. It all depends on the seller’s motivation.
For more information on different loan products that may be able to help, contact your local licensed loan officer at loanDepot’s Retail Lending division today at (888) 983-3240.