Six Reasons Your House Isn't Selling
Six Reasons Your House Isn't Selling
Full Video Transcript Below
[00:00:00] Well, good afternoon, Southern Oregon, Alice Lema here, broker John L. Scott in Southern Oregon. And we have another edition of our weekly podcast. And today because it's October, kind of early October, the weather is changing. The market's changing. The world is changing. Interest rates are changing. Everything's changing because we're in the season of change.
[00:00:19] If your house isn't sold, I want to talk about that. So I've got six reasons your house might not be sold and what you can do if you're in that situation. Okay so before we do that, give yourself a chance to like our channel, subscribe, leave a comment, share it with your friends. Want everybody to have this information so that they can make educated decisions as a consumer. And I am always available for consultation. Always have an opinion, so don't hesitate to reach out.
[00:00:49] Okay. So here we go. Six reasons why your house isn't sold and now what do you do? So the very first thing I recommend, if you're in this spot, Be honest with yourself. Be really honest about what's going on in your neighborhood.
[00:01:03] If you're in the rural properties, same thing, you still have a neighborhood it's just bigger. Okay. You can take the kind of property you have within certain geographic distance and be really honest with what has sold and how it compares to yours. What's pending, how it compares to yours and what's still languishing on the market. Langushing is not fun. And in this kind of a market, you should have sold unless there's something going on with the property, or, you know, the transition just happened right underneath our feet.
[00:01:36] Some people wanted to start a little bit high and do price reductions, got a little bit of behind the market. But all of that is in the details of your neighborhood. And we don't want to ignore that. And sometimes people say, well my house is better. My property is better. You know my place, blah, blah, blah, fill in the blank. Well, yes and no, be honest, be really, really honest. You're in the middle of October just about. You got to have a sit-down with yourself and what's going on around you. Okay. So that's number one, be super honest.
[00:02:06] Number two, feedback. You at least had some showings. And if you didn't have showings, we'll talk about that too. But if you had showings those buyers gave you feedback. Listen to what they say. Take it seriously, go back through and think about when you walk around your property. Were they overreacting. Were they're trying to be polite. Were they underreacting and maybe not telling you the whole how they didn't like it. Their feedback matters. So feedback, feedback, feedback is number two, pay attention to what buyer said or the buyer's agent said when they went through your place.
[00:02:46] Number three updates and current colors matter. I know a lot of people think my house is old or whatever. I've been happy with it. Why should I do anything? That's just kind of the world we live in now, the demand is such that people want at least updated colors. They don't want carpet. They would like some kind of new counters. But they at least want something medium updated. And HomeDepot, Lowe's that kind of level of updates is fine.
[00:03:16] It doesn't have to be super fancy, but current colors and updates matter. So after you've done your honesty session with yourself about your neighborhood and gone through the feedback you've received from the other showings, then really consider doing some updated paint, colors, some updated floors, maybe get rid of some of that carpet and just have it be looking a little more 2020. Because current colors and updates matter. So that's number three.
[00:03:44] Number four, older houses don't always get looked at as often, sometimes just because people will set their search criteria for a newer construction age. Like they'll say the build date. They want it to be more 1995 or 2000 or something like that because older home sometimes cause worry. So number four is just be aware that sometimes older homes cause worry and you need to market around that. In Southern Oregon, we are blessed with some amazing mid century modern turn of the century, vintage homes that have been well taken care of and, and many times updated, but they don't always get looked at unless that's the kind of specific house, a buyer wants.. So if you have an older home, maybe think about some ways to market around that you can get the inspection upfront. You could also do more of a video and floor plan and things like that online. The buyers can at least see that the house is beautiful. It's easy to get around in. If you have stairs, maybe create a space downstairs for another sleeping area, if that's needed. But older homes do cause a little bit of concern in buyers minds. Sometimes they worry about the condition. They worry about things breaking later. You could also make a list of all the improvements that have been made, whether you did it or a previous owner. But that's how you just got to think about it. Sometimes the older houses you got to get in front of the perception. Okay.
[00:05:13] Number five, then you have to start asking yourself. Should you lower the price or is it worth going through and making some improvements because of the current colors or the updates or the feedback or whatever. So that is an interesting question because it's hard to do construction right now. It's hard to get anything done because we still have so many of our trades kind of siphoned off for , the fire work, which is super important. But if you're trying to do a remodel, then right now it's hard and it's expensive.
[00:05:46] And the supply chain, I mean, you hear about it on the news, but it is real. Go try and get a headlight or something changed for your car. Something simple used to be able to just drive it and get .Try to get fencing, try to get counters. Everything ,everything is taking time and sometimes the orders can be placed, and then you find out a few days later, oh, it's going to be like really long. Your refrigerator hasn't even been built yet. So anyway just ask yourself, is it worth improving? Do you want to go through all the delays and headaches? Or should you just lower the price? The problem with just lowering the price is that it doesn't always make the buyers write the offers. Because going back to what we were saying earlier, the updates matter, the colors matter. People really do want move in ready. Especially think after, I know this is our second year of COVID people that are a little bit battle weary just with life. And so if they're going out to buy a home right now, they just, everybody kind of wants easy and no fuss. So. I still think it's probably going to be worth improving instead of lowering the price. But that's just a conversation you're going to have to have with your contractor and your family.
[00:06:58] And now that it's going into fall and, and winter, is this something you want to take on after the holidays and put it back on the market later, but yeah, that's the contemplation that we're all having right now. So that's number five. Is the property worth improving or should you just lower the price double-edged sword on that one?
[00:07:17] So number six, our last one. So there's a lot of buyers that think the prices are going down and when they hear the interest rates are going up, they think for sure the prices will go down to compensate for the higher rates. So I've got two thoughts on that. One is. I do believe the prices are softening.
[00:07:37] I think that's what's happening right now, but it's more about supply and demand. And as we get more supply, the prices will level off. I don't, I don't see a big dip. I just don't, I'm an older person. I've watched a lot of markets, but I'm not Nostradamus. So I'm just predicting that it's going to level off maybe soften a little and that's going to kind of be it.
[00:07:56] The idea of the rates affecting prices, that is true. We've watched that in other market cycles because real estate has a cycle as the decades go by. But it's not an instantaneous thing. So if the rates go up a whole percent, the sellers don't automatically drop their prices right then and there so that the buyers have the same, the same monthly payment. It's an evolution over time.
[00:08:23] And we just don't know how long it's going to take our sellers and our market. How long it's going to take for them to start compensating for the rate changes, unless they're actually sitting down with a mortgage calculator, which actually now that I think about it, that's a great idea.
[00:08:41] If you have a house on the market, you could run the payment for what it is right now, the current rates or thereabouts, and then do a half percent higher. A whole percent higher, just so, you know, as a seller, that's actually a good idea because that's what the buyers are doing. So, yeah. And that could also be part of your, part of your marketing.
[00:08:59] So yeah, but this is a perception issue. Is that some of the buyers, do you think there's going to be some kind of an adjustment? There's a few of them that think there's actually going to be a full-blown crash. A lot of us just don't think that. We're not basing it on just our real estate experience, where we're looking and researching economics and listening to leading people in the United States and in the world that are financial people.
[00:09:25] And we're just not getting that feedback from, from those experts that we're coming into some kind of a really big housing crisis again. So if that is the case, then as the rates go up, it will affect what the buyers can buy. But if they're still really holding out for the move in ready, nicer, they might take themselves out of the market.
[00:09:49] The buyers might take themselves out of the market and get more money. Save up more money, get more money from their relatives. Bring in a partner, bring in a co-signer. But that that means that you didn't get that offer if you're trying to sell. So just keep in mind when you're doing your marketing as a seller, there is a perception out there that there might be some kind of a price adjustment, and people might love your house online, but they're not going to write an offer because they think you're going to lower the price.
[00:10:20] So there's a lot of different ways we can win deal with that perception. That's a whole nother podcast. So those are the six things to think about if your house hasn't sold and, and some suggestions about what to do next.
[00:10:33] I'm Alice Lema, broker John L. Scott here in Southern Oregon. I want to be your agent. This is an educational broadcast, but I also work in real estate. I'm a great buyer's agent. I'm a great listing agent and I want to help. So give me a call, give me a text (541) 301-7980. Let me know what I can do and go and have a beautiful Southern Oregon weekend hug everybody you love. Bye now.