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My Home Didn’t Sell! Now What?
When it comes to listing their home, most home sellers want three things: 1) to make a lot of money, 2) to put in minimal time and effort, and 3) to sell quickly. But the reality is, selling a home is rarely that simple. And homeowners who try to do it themselves—or receive bad advice—can end up stuck (months later) with a property that hasn’t sold.
If that’s you, don’t panic! I’ve outlined the top five reasons a home doesn’t sell—and action steps you can take to overcome each of these issues.
Not sure why your property didn’t sell? If you’re not already working with an agent or your listing has expired or been withdrawn, give us a call! I’d be happy to offer a free, no-obligation assessment and create an action plan to get your home SOLD.
This marketing piece is not intended as a solicitation for properties currently in an exclusive agreement with another Broker.
If your home didn’t sell after several months on the market, timing could’ve been a factor. Markets are driven by the law of supply and demand, and real estate is no exception.
When there are a lot of people who want to buy homes (demand) and a shortage of inventory (supply), it’s considered a seller’s market. During a seller’s market, listings tend to get snapped up quickly. In a buyer’s market, however, there are more homes for sale than active buyers. This can cause homes to sell for less money and to sit on the market for a longer period of time before receiving an offer.
What causes the shift between a seller’s market and a buyer’s market? Economic factors like interest rates, affordability, domestic growth, and the unemployment rate can all impact buyer demand. Over the past year, for example, higher mortgage rates have not only made it harder for some borrowers to qualify for a home loan, they have also sharply pushed up homebuyers’ anticipated monthly payments. So even if a buyer was interested in your home, they may have passed on it if they couldn’t qualify for a mortgage at your asking price. Seasonal factors like weather, holidays, and school schedules can also increase or dampen the activity and motivation of buyers. Additionally, unexpected events, such as a natural disaster or a stock market crash, can cause some buyers to put their purchasing plans on hold until conditions normalize.
If timing does appear to be a factor, it may be advisable to delay relisting your property. Of course, that’s not feasible (or desirable) for every seller. In most cases, buyers can be motivated to act with a combination of improvements, incentives, and pricing. Where there’s a will to sell, there’s usually a way. Fortunately for sellers, people will always need a place to live, and there will be a percentage of the population that is motivated to buy quickly. If you suspect timing played a role in your inability to sell, consult with a knowledgeable real estate agent. I'm in the field every day and have access to the latest market data. I can estimate how long a home like yours should take to sell given current market conditions and help ensure that your asking price is competitive.
Did your home get a steady stream of showings when it was on the market? If not, you may need to try a new promotional strategy. Take a look at the listing description. Did it entice buyers to visit your property? A well-written description should be clear and compelling while highlighting your home’s most desirable features. Additionally, it should have utilized best practices for search engine optimization (SEO) to ensure that it was found by buyers who were looking for homes online. And how well did the listing photos showcase your property? Many buyers use photos of a home to decide whether or not to visit it in person. In fact, 85% of buyers who browse online find photos “very useful” in their home search. Poor quality or a low quantity of listing photos could have kept potential buyers from stepping through your door. Another factor to consider is whether your listing reached the right audience. This can be especially important if you have a unique or highly-customized home. The Multiple Listing Service is a great place to start, but some properties require a more robust marketing approach.
If you suspect ineffective marketing, consider turning to a skilled professional with a proven approach. I employ a strategic Property Marketing Plan that uses the latest technologies to seed the marketplace, optimize for search engine placement, and position your home for the best possible impression right out of the gate. For example, I know what buyers in this market want and can craft a persuasive description to pique their interest. And since good listing photos are so crucial, I work with the top local photographers to ensure each shot is staged to your home’s advantage. I also know how to get your listing in front of the right audience—one that will appreciate its unique features. By utilizing online and social marketing platforms to connect with consumers and offline channels to connect with local real estate agents, your property gets maximum exposure to your target market. Want to learn more about our multi-step marketing strategy? Reach out for a copy of our complete Property Marketing Plan.
If your property received a lot of foot traffic but no offers, you may need to examine the impression you made on buyers who visited your property. Start with your home’s structure and systems. Are there large cracks in the foundation? How about doors and windows that don’t properly close? Are there water stains on the walls or ceiling that could signal a leak? These can be major “red flags” that scare away buyers. Next, examine your curb appeal. Does the yard need mowing or do the hedges need trimming? Are there oil stains on the driveway? Any peeling paint or rotted siding? If your home’s exterior looks neglected, buyers may assume the entire house has been poorly maintained. Now move on to the interior of your home. Is it clean?
When I take on a new listing, I always walk through it with the homeowner and point out any repairs, updates, or decluttering that should be done to maximize its sales potential. I also share tips on how to prep the property before each showing.
PRICE IS TOO HIGH
Many homeowners are reluctant to drop their listing price. But the reality is, buyers may not seriously consider your property if they think your home is overpriced. Attitudes have changed since the Federal Reserve started hiking interest rates. Many of today’s homebuyers are no longer willing or able to pay as high a price on a new home as they might have when borrowing costs were lower. If your home’s original asking price was set using sales data from the market’s peak, then you may need to rethink your pricing strategy. Economic factors aren’t the only reasons, though, why a home’s asking price might not match its market value. Pricing a home can be tricky, regardless of the economic climate, because so many factors can impact how much buyers are willing to pay. For example, unique, highly customized, and luxury properties are particularly difficult to price because there aren’t a lot of comparable homes with which to compare them.
Regardless, if your home sat on the market for months without an offer, then chances are good that your asking price needs to be reevaluated.
If you aren’t in a rush to sell your home, adjustments to timing or marketing may bring in a new pool of potential buyers. And repairs, upgrades, and staging can increase the perceived value of your home, which may be enough to bring a buyer to the table at your original list price. However, if you need to sell quickly, or you’ve already exhausted those options, a price reduction may be necessary to get your home the attention it needs to sell.
I am a local market expert and have access to the latest market data and comparable sales in your neighborhood. I can help you determine a realistic asking price for your home given today’s market conditions. J ust reach out for a free home value assessment!
YOU HIRED THE WRONG AGENT (OR WORSE, NO AGENT AT ALL)
If you suspect that your previous real estate agent didn’t do enough—or used the wrong approach—to sell your home, you’re not alone. Many sellers whose listings languish until they expire or are withdrawn feel this way. While most agents have the best of intentions, not all of them have the skills, experience, instincts, or local market expertise to devise a winning sales strategy in this challenging market. Or, perhaps you chose not to hire a listing agent at all and have been trying to sell your home yourself. This can be an equally frustrating endeavor. Although selling your home independently can help cut some costs, it can also be extremely risky and may even lose you money in the long run. For example, research by the National Association of Realtors suggests that For Sale By Owner (or FSBO) homes tend to sell for less than homes represented by a professional. In 2021, for example, the average FSBO home sold for $105,000 less than the average home sold with the assistance of an agent
If either of those scenarios sounds familiar, you need to ask yourself: “Would I still be interested in selling my home if I could get the right offer?” If so, we should talk. I understand how frustrating it can be when you’ve put a lot of time, money, and effort into prepping your property for the market and it doesn’t sell. I also empathize with how disruptive a delayed home sale can be to your life. By now, don’t you owe yourself more than the status quo when it comes to your real estate representation? My multi-step Property Marketing Plan can help you sell your home for the most money possible, and in the process reconnect you with the excitement you originally felt upon first listing. It’s time for a new agent, new marketing, new buyers, and most of all… new possibilities.
READY TO MAKE A MOVE?
Let’s talk. Ican help you figure out why your home didn’t sell and how to revise your sales strategy and set your home up for success. The housing market has experienced a shift and the waters may be choppier than usual for a while. But there’s still plenty of opportunity in the current market: You just need a guide who knows where to look and how to find it. This marketing piece is not intended as a solicitation for properties currently in an exclusive agreement with another Broker. The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
7 Reason to Own a Short-Term Rental in Joshua Tree / Yucca Valley, CA
- High demand: Both Joshua Tree and Yucca Valley are popular tourist destinations, with a steady stream of visitors throughout the year. This high demand can translate into a good return on investment for short-term rental owners.
Unique location: Both Joshua Tree and Yucca Valley are located in the Mojave Desert, which offers a unique and beautiful landscape that attracts visitors from around the world. This unique location can make a short-term rental in either area a desirable vacation destination.
Proximity to attractions: Both Joshua Tree and Yucca Valley are located near a number of popular attractions, including Joshua Tree National Park, the Mojave National Preserve, and the San Bernardino National Forest. This proximity to attractions can be a major selling point for short-term rental guests.
Strong local economy: Both Joshua Tree and Yucca Valley have strong local economies, with a mix of tourism, agriculture, and manufacturing. This strong local economy can be beneficial for short-term rental owners as it can help to support demand for vacation rentals.
Favorable rental regulations: California has generally favorable rental regulations, which can make it easier for owners to operate short-term rentals in the state. However, it's important to note that local regulations and zoning laws may vary, so it's important to research the specific regulations in Joshua Tree and Yucca Valley before investing in a short-term rental.
Affordable housing prices: Both Joshua Tree and Yucca Valley have relatively affordable housing prices compared to other parts of California, which can make it easier for short-term rental owners to afford a property in either area.
Strong local communities: Both Joshua Tree and Yucca Valley have strong local communities with a variety of amenities and attractions. This strong sense of community can make these areas attractive to short-term rental guests, particularly those looking for a more authentic and immersive vacation experience.
Investing in Long-Term Rentals vs. Short-Term Rentals
When it comes to real estate investing in Southern California, there are two main options: long-term and short-term rentals. Both have their own pros and cons, and it’s important for investors to understand the differences and determine which type of rental is the best fit for their specific situation.
For those looking for a more passive investment option with steady income, a long-term rental can be a great choice. Long-term tenants are more likely to stay put for longer periods of time, which helps ensure a consistent cash flow and substantially reduce vacancy rates. Long-term tenants also tend to take better care of the property, as they have a vested interest in keeping it in good condition.
On the other hand, short-term rentals offer higher potential returns with less risk. Short-term rental income can often be much higher than long-term rentals, as investors can charge a premium for a short-term stay. Additionally, short-term rentals can be a great option for those who are looking to take advantage of seasonal spikes in demand, such as during the holidays or summer months.
Overall, investing in a short-term rental in Southern California can be a great way to maximize returns with minimal risk. With the right location, amenities, and marketing strategy, investors can quickly start to reap the rewards of a successful short-term rental.
How long does it take to sell a house? Understanding "days on market"
See Current & Historical Average Days on Market for SoCal Top Short-Term Rental Markets
What does “days on market” mean?
Days on market literally refers to the number of days a home has been on the market, i.e., officially for sale. However, it technically measures only how long the home has been listed for sale by a particular agent.
The total time a home has been for sale, regardless of agent, is known as “cumulative days on market.” On many websites, buyers can view this cumulative listing history of the property if the seller previously used a different agent or listed the property as for sale by owner.
Days on market is one of the best indicators of whether you’re in a buyer’s market or a seller’s market. If most properties in an area are on the market for a short period, that means you’re in a seller’s market. Demand is high, inventory is low and buyers must move quickly to make their decision. This scenario likely sounds familiar to anyone currently shopping for a new home.
On the other hand, if the time on market is longer, that can indicate a buyer’s market. When houses take longer to sell, it can be a reflection of lower demand. Buyers may be able to be a bit choosier — and sellers might need to be more accommodating, including recognizing that their home might not be worth what they think it is.
What days on market means for sellers
If you’re on the listing side of things, days on market can help inform your selling strategy.
Generally speaking, if your property has been on the market for too long, compared to other listings in your area, you may need to make a price reduction or offer concessions.
What days on market means for buyers
If you’re a buyer, it can be challenging to score a deal when homes in your area are moving quickly. You can benefit, however, if a listing has been languishing for longer than average. Especially if the home is vacant — if the seller has already moved and is paying two mortgages, they could be particularly motivated, and you could get lucky.
You may have room to negotiate if the home’s been sitting. But it could also simply mean you’re dealing with an unmotivated seller. Or one who is stubbornly unwilling to lower their price.
Real estate demand may be starting to cool due to inflation and rising mortgage rates, but the time it takes to sell a house right now is still relatively short. The average days on market in your area is crucial to take note of, whether you’re buying or selling. If a home hasn’t attracted the kind of offers the seller wants in that amount of time, buyers take note — the price may soon be lowered.
Higher Rates and Short Supply: The State of Real Estate in 2022
The last two years caught many of us off guard—and not just because of the pandemic. They also ushered in the hottest housing market on record, with home prices rising nationally by nearly 19% in 2021, driven primarily by low mortgage rates and a major supply shortage.
But while some had hoped 2022 would bring a return to normalcy, the U.S. real estate market continues to boom, despite rising interest rates and decreasing affordability.
So what’s driving this persistent demand? And is there an end in sight?
Here are three factors impacting the real estate market right now. Find out how they could affect you if you’re a current homeowner or plan to buy or sell a home this year.
MORTGAGE RATES ARE RISING FASTER THAN EXPECTED
Over the past couple of years, homebuyers have faced intense competition for new homes—in part due to historically low mortgage rates that were a result of the Federal Reserve’s efforts to keep the economy afloat during the COVID-19 pandemic.
However, in response to a concerning level of inflation, the Fed is now reversing those efforts by raising the federal funds rate. And as a result, mortgage rates are rising, as well. Few experts predicted, though, that mortgage rates would go up as quickly as they have.
In January 2022, the Mortgage Bankers Association projected that rates would reach 4% by the end of this year. By mid-April, however, the average 30-year fixed mortgage rate had already hit 5%, up from around 3% just one year prior. On a $400,000 mortgage, that 2% difference could translate into an additional $461 per monthly payment.
Since then, mortgage rates have continued on an upward trend. So what impact are these rising rates having on demand? While many buyers had hoped for a cooling effect, experts warn that may not be the case.
Ali Wolf, chief economist at housing market research firm Zanda, told Fortune magazine, “Rising mortgage rates are having a counterintuitive effect on the housing market. Home shoppers are actually sprung into action in an attempt to buy a home before mortgage rates rise any higher.”
Since inventory remains low, the resulting “race” has kept the homebuying market highly competitive–at least for now.
What does it mean for you?
While current 30-year fixed mortgage rates represent an increase over previous months, they remain well below the historical average of 8%. As inflation across the economy continues, the Fed is likely to raise rates further this year. Buyers should act fast to secure a good mortgage rate. We’d be happy to refer you to a lender who can help.
For sellers, speed is also of the essence. The pool of potential buyers may shrink as mortgages become more expensive. And if you plan to finance your next home, you’ll want to act quickly to secure a favorable rate for yourself. Contact us today to discuss your options.
HOME PRICES KEEP CLIMBING
History shows that higher interest rates don’t necessarily translate to lower home prices. In fact, home prices rose 5% between 1980 and 1982, a period of significantly higher mortgage rates and inflation.
Forecasters expect that home prices will continue to go up throughout 2022, though likely at a slower pace than the 18.8% increase of the last 12 months. Bank of America predicts that prices will be up approximately 10% by the end of this year, while Fannie Mae estimates 11.2%.
In addition to limited supply and a race to beat rising mortgage rates, home values are also climbing because of positive economic indicators, like low unemployment. Plus, rents are soaring–up 17% from a year ago–which is prompting more first-time homebuyers to enter the market. Add to that the continued popularity of remote work, and it’s easy to see why property prices continue to surge.
However, it’s not all bad news for prospective homebuyers. Economists expect that as mortgage rates rise, the rate of appreciation will continue to taper, though the effect may be gradual.
“Eventually mortgage rates will slow down home prices,” according to Ken Johnson, an economist at Florida Atlantic University interviewed by Marketwatch. “We should not see rapid upticks in prices as mortgage rates rise.” Forecasters agree—Fannie Mae expects price increases to slow to 4.2% in 2023.
What does it mean for you?
While the pace of appreciation is likely to decrease next year, home prices show no signs of going down. However, current labor shortages are leading to higher salaries and better job opportunities for many workers. You may find that your income growth outpaces home prices, making homeownership more affordable for you in the future.
For homeowners, the outlook’s even brighter. You could find yourself sitting on a nice pile of equity.
INVENTORY REMAINS EXTREMELY LOW
As noted, one of the largest hurdles to homeownership is a lack of inventory. According to a February 2022 report by Realtor.com, there’s an expanding gap between household formation and home construction, which has resulted in a nationwide shortage of 5.8 million housing units.
The origins of this shortage date back to the 2008 housing crisis, during which crashing home values led contractors to stop building new properties—a trend that has not been fully reversed.
That decline in home construction also resulted in a decrease in the number of home building professionals, a trend that was exacerbated by job losses during the COVID-19 pandemic. Now, many builders are limited by their ability to find qualified labor.
Another major challenge is a staggering increase in the cost of materials. Pandemic-related supply chain shortages have been a significant driver, with home building material costs rising on average 20% on a year-over-year basis. The price of framing lumber alone has tripled since August 2021.
These trends add tens of thousands of dollars to the cost of a typical home. Factors like a lack of buildable land in many areas, restrictive zoning, and a shortage of developers are also contributing to the issue.
Most homebuying experts agree that the lack of inventory is the primary factor driving rising housing prices and unprecedented competition for homes. With available housing units near four-decade lows, the end of the current housing boom is not yet in sight.
What does it mean for you?
Prospective buyers should be prepared to compete for a home, since low inventory can lead to multiple offers. Y ou may also need to expand your search parameters.
For sellers, the picture is rosier. In this strong market, your home may be worth more than you realize.
Keith Powers REALTOR®DRE #01940642 Cell: (714) 402-1357
---Powers Realty Group--- Alta Realty Group
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