Why don't properties sell?
THERE can be a number of reasons why a property does not sell in the current market, according to RE/MAX Success broker/owner Ian Knight.
The first is price.
This has to be the most common reason.
So often, sellers and agents overprice properties when the market is slow or described as a "buyers market".
If the price is too high and the seller shows no interest in lowering the advertised price, the property will languish on the market without a sale. Consequently, the property becomes stale and buyers perceive it is either too dear or there is something wrong with it.
The second is location.
In the event of an inferior location, real estate sales suffer in a difficult market. If the location is undesirable, then options are limited.
In these circumstances, price is absolutely paramount to compensate for location.
The third is effective marketing.
The internet has changed the face of real estate marketing. Unless your property is the subject of a well considered digital campaign, supported by Domain incorporating Property Week, you may not be getting the maximum exposure necessary when competing for limited buyers in a tough market.
It is most important to find a good experienced real estate agent to market your property. Quite frankly, they're worth their weight in gold.
A common thread in the current tough market is the top performers are easier to distinguish.
The final point is market conditions.
Obviously, this is the main reason why some houses are not selling at present.
We are in the midst of a buyers market. Demand is weaker than we would like but this is constrained by a lack of confidence.
This lack of confidence is reflected through governments, the economy, uncertainty over future interest rates and employment opportunities.
If you are a serious seller, it is critical that your property is perceived by the limited number of buyers as being the absolute best value in the market.
Quite often, there is a mismatch between buyer and seller expectations.
Mr Knight said the message was loud and clear.
If you want to sell, need to sell or got to sell, make sure your property is the best value.
If you're not a serious seller, then either take your property off the market or refrain from listing for sale.