SELLING a property is usually not something that is done lightly, perhaps you need to sell because your family has grown, and you need more space.
Another reason is that you have run your numbers and come to realise that that specific investment property is not growing in value as much as it should, so it makes more financial sense to offload it.
Prominent property commentator Michael Yardney says that regardless of the motivation, the truth of the matter is that if a property is on the market but is not selling, there are usually only a few reasons why.
1. It’s overpriced
At the end of the day, even the worst property to ever exist will sell if the price is right!
If a property is languishing on the market unloved for weeks, while it can partly be due to market conditions, it’s usually also because it is overpriced.
This is especially the case when people try to sell their property themselves, because they generally overestimate what the market value is because of emotion.
For example, there may be recent similar sales in their suburb for $600,000 but they believe their property is ‘superior’ so they list it for $700,000 and then wait and wait and wait for a buyer who is unlikely to ever show up.
Of course, part of a professional sales agent’s role is to provide a comparable market analysis of the property for the seller, so they can make an informed decision on the right price to list it for.
That way, the seller will have the best chance of securing a buyer in the first few weeks, which is generally when demand is greatest, rather than having to lower the price to attract people once the proverbial horse has bolted.
2. It looks bad
While sophisticated investors might be keen on real estate they can add value to by undertaking cosmetic renovations, most buyers get scared when they walk into a property that has seen better days.
Most buyers simply want a property they can unpack their belongings into and call home.
So, if your home has peeling paint on the walls, a bathroom that was last renovated in the 1960s, and threadbare carpets throughout, it might be time to invest a little bit of time and effort into sprucing it up.
You don’t have to spend a fortune to update it, in fact, you’d be surprised what big results a little bit of painting can do for a property.
Likewise, under those nasty carpets are probably beautiful hardwood floors that just need to be polished to turn your home from drab into fab.
3. It looks too much like you
This is the arch-nemesis of all people who are selling their home.
Whether they have lived there for a year or for decades, it’s likely that the home has been decorated to suit their individual personalities and tastes.
Humans are all different, which is why life is so wonderful, but when it comes to interior decorating, one person’s love of excess is another person’s migraine.
So, if your property is not selling, try decluttering all your personal bits and pieces like photos and obscure post-modern paintings that sing ‘this is my home and not yours’.
That’s because the ideal situation is to create an environment where potential buyers can see themselves living there.
If they walk in and all they see is ‘you’, then they are less likely to want to do anything other than walk right out again.
Working with professionals when it comes time to sell a property is one of the best strategies to ensure you achieve a success sale.
They will help you understand the current market conditions as well as the appropriate listing price.
They can also objectively suggest decluttering or styling your property to ensure that it makes a great first impression on potential buyers.
That way, you’ve got a head-start on the competition from the very start.