Reasons Your House Isn’t Selling: Part 3 of 3
In two prior posts, we informed sellers about key factors that prevent homes from selling quickly. Some items noted in the first post can’t be fixed, which means a price reduction is the only option. The second post highlights other issues sellers can and should address with repairs. Still, there are some issues for which the solution is less clear.
Sellers need to consider whether it’s better to address issues in this third category or just reduce the home’s price. The answer varies from one market to the next and on sellers’ personal goals. In some cases, sellers can get a good return on an investment when they address these issues, but they also risk spending more than they save. Note: Make sure to get county permits for major upgrades, or you could have problems when you sell.
Sellers are wise to consult with an experienced real estate agent within their region. A good Realtor® can help them evaluate each circumstance and offer the best options for addressing them before listing a home.
Let’s look at some of these challenges, starting with the bigger ticket items.
The home needs major updates. Perhaps some of the most common issues are older, outdated finishes. Many real estate agents automatically suggest updating everything, as it will help the home sell quicker, and the agent will collect a bigger commission. But we don’t recommend this without reservation because our fiduciary responsibility is to represent our sellers’ best interests, and updates sometimes will not generate a return on investment. Instead, sellers need to be strategic about what they update, how they do the update, and how much it costs.
When deciding on updates, sellers should have a tight budget, or they’ll risk losing money on overly expensive renovations. For more details on that, see our articles on preparing a home to sell and remodeling on a budget.
The floorplan doesn’t conform with modern demands. Nowadays, we find most buyers want certain amenities and floorplans to meet their needs. These include:
- Open kitchens that flow into dining and living areas.
- Master bathrooms.
- Master walk-in or otherwise large closets.
- A minimum of three legal bedrooms for single-family homes.
Such desires may vary from one community to another. For example, in a community where many buyers are looking to retire, single-level homes may be more desirable than multilevel homes. Consult a local Realtor® to get insights on what’s most important in your market.
Many times, it’s too cost prohibitive to change a floorplan because it often requires moving walls—some of which might be load-bearing. However, there are cases where relatively small modifications could make a world of a difference. Examples of a few possible changes to improve a floorplan that *might* pay off include:
- Turning a two-bedroom home into a three-bedroom home by adding an egress exit to a room that otherwise does not meet the legal definition of a bedroom. Zoning regulations, for example, might require that all bedrooms have an opening large enough for emergency personnel to enter with full fire-protection gear, and the window must be low enough for occupants to escape. Accordingly, many basement rooms cannot be listed as bedrooms because either they don’t have windows, or the windows are too small and/or too high. In some cases, adding that opening might add enough value to more than cover the cost. Of course, check with your local government to ensure that your modifications fully meet the zoning regulations for a legal bedroom.
- Turning a one-and-a-half bath home into a two-full-bathroom home by adding a shower or tub to a half bathroom (assuming there is sufficient space).
- Expanding a closet to make a walk-in master closet, assuming there is space, and no major structural walls need to be moved.
- Removing a non-load-bearing wall to open a tightly enclosed kitchen to other areas of the house.
The home has old infrastructure. Most buyers will be cognizant of costs they may have to pay in the future for updating major items, such as the roof, windows, or HVAC. If major home systems (including swimming pools) are broken or leaking, it’s best to fix them. That includes replacing systems that cannot be repaired. The other option is to reduce your price and sell the home “as is.”
However, if these items are in working order, they won’t necessarily be a roadblock for many buyers, even if they are on the older side. See our article on key repairs sellers should make before listing their homes. In addition, offering a home warranty to buyers when you have an older HVAC system or old appliances can help reduce buyer reservations about moving forward.
The home has material defects related to construction. Some homes have outdated elements that some buyers might consider material defects. Such items include polybutylene pipes, old electric junction boxes, asbestos shingles, knob and tube wiring, and the like. How one addresses these concerns depends on the costs and the seller’s overall objective. Sometimes, the costs may be too high to yield any benefit to the seller, particularly if the materials are not causing harm and are still functional.
For example, there are concerns about the longevity of polybutylene pipes and concerns about potential failure. But the fact that these pipes exist does not mean they will necessarily fail, particularly if they have been functioning well without issue for a long time. Those realities—along with the fact that replacement is expensive—might warrant leaving them alone.
In any case, sellers should always disclose the existence of any known items that a buyer might consider a material defect. Basically, a material defect is anything that might cause a buyer to not want to buy a property if they are made aware of the defect. Many times, buyers won’t consider these items until they come up during the inspection, but if buyers know before making offers, it will reduce the possibility that they drop out of the contract after an inspection. If an item can be remediated at a reasonable price before going on the market, addressing it may be the best option.
The home has old, ugly appliances. Sometimes replacing appliances that look bad, even if they work, makes sense, particularly if the rest of the kitchen is updated. Older appliances shouldn’t be a major reason why your home isn’t selling, but sometimes newer appliances help. People prefer clean, newer appliances in modern finishes, particularly stainless steel. But if the rest of the home needs work and you want to sell “as is,” updating the appliances alone probably won’t solve your problem.
The home has old, worn-out or non-neutral colored carpet. If the carpet is really worn or a non-neutral color, while the rest of the home is in good shape, it may well be a good idea to replace it. If the carpet has water damage and smells moldy, it’s even more important to replace. If it’s in good shape but just a bit loose, it can be re-stretched. Professionally cleaning a carpet that is in reasonably good shape is always a good idea. If the rest of the home is not in great shape, is outdated, or is being sold “as is,” putting in new carpet might not pay off. However, even for an “as is” home sale, it might be a good idea to remove old carpet and all the nails and tacks if there are hardwood floors below, particularly if you can do it yourself. It can be attractive to buyers if they can see the possibilities of wood floors that can be refinished.
The walls are dirty and or painted various taste-specific colors. Fresh paint in neutral tones on all walls is one of the most helpful and affordable things sellers can do to help sell their home. But it’s usually only affordable when sellers do the work themselves! Professional painting can be expensive. If you can’t do it yourself, washing and touching up paint may be a better option. If you touch up the paint, be 100 percent certain to have the same exact paint color, brand, and finish (flat, satin, eggshell, or gloss). You will create more problems than you solve by touching up with the wrong paint. If you can’t get or find the exact same paint, stick to cleaning only. Mr. Clean Magic Eraser is an excellent tool for removing marks.
Ultimately, there’s no magic bullet when it comes to eliminating the reasons a home isn’t selling. In the end, it comes down to price, because pretty much any home will sell if the price is low enough. The challenge, however, is balancing the home’s amenities, infrastructure, looks, and textures with that price point sweet spot that’s high enough to make you happy but competitive enough to encourage competition among buyers.
A home lingering on the market in today’s competitive atmosphere is a red flag that can drag a home price lower and lower, and we want to keep that from happening to you. We hope this series, including part 1 and part 2, can serve you well when strategically planning what to do (or not do) to get top dollar for your home.
Angela Logomasini and her husband Christopher Prawdzik are licensed Realtors® with Samson Properties in Alexandria. Operating as D.C. Region Real Estate, they serve the Virginia, Washington, D.C., and Maryland real estate market and offer comprehensive real estate services, including 4½% full-service listings.
