Why Your House Isn’t Selling ... - DC Region Real Estate

In a hot seller’s market—like the one the we’re in now—the overwhelming majority of listings sell in a matter of days. Accordingly, sellers whose homes sit on the market for weeks—or even worse, months—often ask: Why isn’t my house selling?

A number of factors affect how quickly a home sells, but most important is the price. There is a price for every house, in every condition, and in every location, with some very limited exceptions, such as homes in remote corners of the world where no one would go. All other factors notwithstanding, if a home lingers long past average days on market for its community, it’s overpriced. That simply means that no one wants to pay anything near the asking price for a home in its particular location, style, and condition. Accordingly, it’s essential for sellers to price their homes correctly in the first place or they will suffer the consequences. See our article on price for more information on pricing your home right.

While sometimes it all comes down to price, other times there are things sellers can do to move a house more quickly, and it’s critical to know these factors up front. We put them into three categories.

Can’t Fix. These are attributes about a home that can’t be changed, and hence, sellers can only resolve them with price adjustments.
Should Fix. Oftentimes sellers overlook essential repairs or upgrades that prevent buyers from making offers. After all, most buyers don’t want to buy something that they think will be a big problem for them to address. So, if a seller can eliminate the problem before going on the market, that’s ideal.
Consider Fixing. Sometimes there are upgrades that will help sell a home more quickly, but sellers should be strategic and not overspend. The goal is to get more back than you spend on the upgrade, or at least break even but benefit from a quicker sale.

This article addresses the first of these three items; two subsequent articles will cover the other two categories. The following examples include cases where sellers simply have to make price-related accommodations to get their homes sold.

The home is an outlier. Some homes don’t fit well in the neighborhood in which they are located, which is a factor that sellers can only resolve by pricing them right—often lower than they expect. Key examples are unusually large, newer homes built in older neighborhoods where the homes in the immediate vicinity are smaller, different styles, and fetch substantially lower prices. And if the other homes are not as well maintained, that will put additional downward pressure on the price. In such cases, the larger home won’t garner the same price as homes that may be nearly exact comps but are located in areas where they conform with their neighbors—even if they are relatively close. This reality can be frustrating for sellers who think that a home just a half a mile or even a few blocks away is a good basis for their home’s price. But if the immediate neighborhoods of the seller’s home and that of the similar properties are substantially different, buyers expect that to affect the price.

Here are a few examples of outliers:

A relatively new 6,000-square-foot multi-level contemporary home located in a neighborhood of mostly 1,500-2,000 square-foot 1950s to 1970s ranches and cape cod homes—some of which are not well maintained.
A home with multiple additions creating a structure that is unlike any home nearby and is not stylistically attractive to many buyers.
A home designed with an ultra-modern or otherwise unusual style located in a neighborhood of traditionally styled colonial homes.
A home with an unusually large lot that the municipality won’t allow the seller to subdivide. While the larger lot might generate higher offers, it may not generate as much as a seller expects because some buyers don’t want a lot of land to maintain.

The location is a challenge. Your home might be in the most prestigious zip code or subdivision, but if its location is less desirable than other homes in that area, it will sell for less. Such factors include locations with more traffic, noise, less attractive views, and/or messy neighbors. For example, buyers generally expect to pay less for homes on busy streets than those on quiet streets.

What people consider attractive in terms of views and locations may vary by market. We find that buyers like to be near and even within view of amenities such as artsy coffee shops, gourmet convenience stores, and small independent restaurants, while they consider views of basic convenience stores, gas stations, large chain restaurants, and strip malls less attractive.

Examples of location challenges:

A townhouse at the edge of a community with views of a convenience store and gas station, while townhouses in the same community have views of a wildlife area and/or other homes.
A home on a busy street that serves as a commuter route.
A home that backs up to a major highway that you might hear even if you can’t see it.
A condo unit located on the lowest level of the building that’s partially below grade with fewer windows than other units in the same building.

It’s important to remember, simply because a home is an outlier or location-challenged, that does not mean it’s not a great home that will garner an attractive price. Rather, sellers need to remember that they probably got a better deal when they purchased the home and understand buyers will expect the same.

So, when selling one of these homes, the solution is rather simple. Make the home more attractive by listing it a price that will attract lots of buyers. Indeed, it’s the wise seller who is willing to price the home lower than similar homes that are either better situated in the neighborhood or in a nearby higher-priced neighborhood. With any luck, that will bring in the buyers, excitement, and maybe even prompt a bidding war. If the home starts to linger, smart sellers make quick, and significant price adjustments, and buyers eventually take notice.

Of course, not all homes that linger on the market are outliers or location challenged. Sometimes, there are actions sellers can take to get them sold. Check out part 2 and part 3 of this series to learn more.

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.