Things You Can Do When Your Home Isn’t Selling
Is your house not selling? I know it can be maddening.
Few situations are more frustrating than struggling to sell your home after you put it on the market. You tried to do everything right.
You have spent considerable time and effort, and possibly money, trying to get the word out and get some offers. But no real luck.
A lack of understanding of what it takes to sell a house could be part of the problem.
Real Estate agents always get asked why my home won’t sell. There are usually some straightforward common denominators. In my guide, I explain all the likely reasons.
Well, what are your options when your house doesn’t sell? Is there anything else you can do instead?
Fortunately, there are things you can do when your home isn’t selling. They may involve compromise and be less than ideal, but sometimes, your situation dictates that you must take action.
There have been very few times in my career where selling a home wasn’t possible. In some instances the economy was terrible and the housing market was in decline. However, this didn’t mean a home could not be sold. If an owner is willing to follow sound advice, it’s always possible.
In tough times, you may not get your desired terms. You may want to consider different options when you cannot sell for what you want.
I will discuss prevalent alternatives when your property won’t sell. Let’s dig in.
1. Wait to Sell.
When a house is not selling, you may be better off waiting.
In real estate sales, timing is everything. In most markets, there is an optimal time to sell.
Although selling a home in just about any market is possible, there may be a more advantageous time. Maybe right now isn’t a good time.
You may be selling in the middle of winter, when there are fewer buyers, over the holidays, when people expect deals, or you may just have had bad luck and hit a market slump.
Whatever disadvantage you face, waiting to sell might shift the odds in your favor. For example, Spring is always the best time to sell a home in the Northeast.
Spring is head and shoulders better than any other point in time. Why? More buyers will look for a house in the Spring than in any other season. Not only do homes sell quickly, but they also go for more money.
In the spring, your odds of getting multiple offers and having a bidding war go up exponentially. Homes sell more quickly, and the chances of more than one interested person increase significantly.
If you are selling a home and don’t have any time constraints, it’s always wise to speak to a local real estate agent to find the best time. Remember when talking to an agent that NOW should not always be the correct answer.
Asking if it is an excellent time to sell a house should have a detailed answer. There should be an overview of the best and worst months to sell a home.
There will always be a percentage of agents who think more about themselves than you. Unfortunately, getting their next paycheck will be the agent’s top concern, and they are not giving you the best advice.
You will get much better advice from a real estate agent who doesn't need a commission check!Click To TweetEnsure the agent explains the best time to sell your home and why! Postponing your home sale might be the best option.
2. Find Renters.
Finding renters could be feasible if you struggle to pay your mortgage in challenging financial times.
You may or may not be able to find renters willing to pay the entire mortgage, but if you can get close, your part of the bill would be much more manageable than the whole cost.
Just remember, being a landlord is a lot of work. You must have a plan to manage the property, whether you do it yourself or hire a property management company to cover you.
Renting your home, however, could be a good stop-gap measure if selling your home has been impossible.
People often rent their homes as an alternative to when they first considered buying and selling simultaneously. Sometimes, it doesn’t work financially, and renting becomes a quicker turnaround.
3. Rent to own.
Renting to own could be an alternative option when your home is not selling.
Rent-to-own offers, or lease options, are a favorite way to attract buyers who are not sure they want to buy. They can rent the home at a typically higher cost than market rent and have the option to buy the home for a specified price.
You may even convince the renter or future owner to agree to be responsible for the repairs on the home, which can save you even more money.
Rent-to-own tenants are also more likely to take better care of your home, even if they don’t buy.
For homeowners considering entering into a rent-to-own agreement, the pros can include the potential for steady rental income, attracting committed tenants who may take better care of the property, and eventually selling the property to a tenant already invested in the home.
However, the downside is drafting a rent-to-own agreement that protects the homeowner’s interests. Potential legal and financial risks exist if the tenant fails to complete the purchase. In addition, you won’t be allowed to sell the property on the open market during the lease term.
4. Change Your Real Estate Agent.
Sometimes, the problem with your sale is not your home. The real estate industry is like any other; some agents are better than others. And it may not even be that your agent is not good at what they do. It’s at the top of the list of house-selling mistakes.
They may just be falling short on your particular sale for whatever reason. From lack of experience with your specific type of home to personal problems distracting from work, even a great agent can be a bad fit for a seller.
Changing your agent may be a simple, effective way to get a different perspective and skill set involved in your sale. On occasion, there are legitimate reasons that a real estate agent should be fired, from being unprofessional to not spending any time or effort marketing your home to just not getting the job done. There is a wide range of skill sets with agents. Some are much better than others at what they do.
Sadly, some real estate agents spend no time or money marketing a home well. In the real estate industry, these agents are known as “post and pray.” They post your listing in the multiple listing service, put a sign in the yard, and pray.
In other words, they do nothing to earn the thousands of dollars you will pay them.
If this is how you feel after you speak to your real estate agent, it may be time for a change.
Don’t settle for a cut-rate real estate agent. Instead, seek out and search for a top producer in your area. Look for a track record of success – there is no better recommendation than that!
Qualities to Look For in a Realtor
Here are the top traits to look for when looking for a new real estate agent. This comes from years of experience interacting with other agents.
- Market Knowledge: Understands local real estate trends and prices. Without a solid knowledge base, your home could be priced incorrectly.
- Communication Skills: Communicates clearly and promptly with clients. This is the number one complaint against real estate agents.
- Negotiation Skills: Effectively negotiates deals to benefit clients. I always say you want a tiger, not a lion when it’s your most significant asset.
- Professionalism: Maintains a professional demeanor in all situations. You want the ultimate pro in your corner.
- Integrity: Acts honestly and ethically in every transaction. The best Realtors put their clients’ interests ahead of their paychecks.
- Persistence: Diligently pursues all leads and opportunities. You want someone with drive and motivation.
- Problem-Solving Ability: Finds creative solutions to challenging situations. Problems are common in real estate sales, and you want someone who can easily navigate them for you.
- Attention to Detail: Catches and addresses minor issues before they become more significant problems.
- Networking Skills: Has a broad network of contacts in the real estate industry. Realtors who get along well with others usually have a solid business foundation.
- Adaptability: Quickly adjusts strategies to meet changing market conditions. An excellent agent won’t hesitate to give you the advice you need. This will continue to reinforce a sound home-selling strategy.
- Tech-Savvy: Utilizes technology to enhance efficiency and communication. The best agents aren’t living in the dark ages. They embrace things that make them more productive.
- Client-focused: This approach prioritizes the needs and interests of clients above all. For example, it likely won’t practice dual agency, which benefits agents rather than consumers.
5. If You Are Relocating For Work, Inquire About a Guaranteed Purchase Program.
If your company wants you to relocate, you may have access to a guaranteed purchase program you are unaware of. Many companies that require workers to transfer employ relocation companies specifically to deal with home sales.
You may not even have to worry about selling your home. Your employer may be able to take care of everything.
Relocation programs where the employee’s company agreed to buy the home used to be far more common. Today, companies are not offering home buyouts like they used to. It is always worth asking, though.
At the very least, you may find the company is willing to pay your real estate agent’s commission. This alone could amount to substantial savings.
6. Consider Another Mortgage.
For sellers selling based on financial troubles, sometimes taking out another mortgage is an option for generating cash. You must be careful with this choice because taking out another loan is not without problems.
However, homeowners have various financing options, like getting a home equity loan or refinancing a mortgage to get a better rate. Be careful with this particular choice, though.
Make sure to speak with a financial adviser who has no vested interest in selling your home before you make a final decision.
Getting a home equity loan is only a short-term fix to a more significant problem.
7. Sell For Less Than Market Value.
A steep price reduction can be a last resort when nothing else seems to work. No one wants to sell for less than market value, but sometimes, it is the most obvious way to unload a property.
Most buyers understand a value when they see it. Believe it or not, dropping your price below market value may spark a bidding war, and you could end up selling your home for more than you expected.
There are always investors and real estate buyers out there hunting for such deals, so you will probably not have to wait long for a buyer if you take this step.
Sometimes, a firesale is what’s needed to unload your property. While there is no way of knowing you’ll sell for what you want, you’re likely to get offers at least.
If you need to sell, a fire sale is one of the easiest ways to accomplish your goal.
Kevin Vitali of Real Broker MA explains that some homes are not compelling enough due to wishful thinking on the price.
Most people understand that the #1 reason a house does not sell is an inacurate asking price. If your home lacks the same qualities as the competition you can’t expect to sell for the same price. I recommend to all my clients to take a hard look at the price when buyers are not coming along as expected.
Sell to a Fix and Flip Real Estate Investor
Selling to a real estate investor is not uncommon. I am sure you have seen the signs plastered on telephone poles and street signs that say, “We buy houses” or even “We buy ugly houses.” These are investors looking to buy properties on the cheap.
Selling for less than market value is an option that should only be used if you can’t think of a better way to sell the home.
The unfortunate drawback of selling to a company like We Buy Ugly Houses is that you’ll likely sell for 30-40 percent less than the market value.
Changing your real estate agent, drastically lowering the price, or even waiting for a better time to market are usually better options.
Colum Malcolmson with Malcomsom Real Estate Group weighed in with the following helpful thoughts:
A common question I get from many homeowners looking to get a discount on selling, “What’s really with those we-buy-ugly-house signs? While this might be a good option for hoarder homes, inherited property or probate, the majority of homeowners really should stay away from these types of deals.
There are numerous downsides. It’s no secret that the most obvious downside is lower price point. Some people don’t mind that, but most homeowners want to get as much from their home as possible. Selling it outright to an agent or investor for cash is never going to get the maximum return.
Another issue not getting your home in front of as many buyers as possible. It may be quick but you won’t have the pool of buyers that really helps drive up value.
Selling directly to an investor might be suitable for sellers looking for an immediate, as-is sale, but it’s important to weigh the potential for a lower sale price against the benefits of a quick, no-hassle transaction. When your house is not selling it’s tempting but there is usually better alternatives.
Use an iBuyer
Another alternative when your house has failed to sell is contacting an iBuyer. An iBuyer is another form of real estate investor. Instead of buying homes in lousy shape, they look for good-quality properties.
Here are the basics of what you should know:
An iBuyer is a company that uses technology to make instant offers on homes.
- Technology Assessment: The iBuyer uses algorithms to evaluate a home’s value based on market data and the seller’s information.
- Instant Offer: The seller receives a cash offer quickly. You will usually get the offer within 24-48 hours without listing on the market.
- Seller Decision: The seller can accept, reject, or negotiate the offer.
- Inspection: If the offer is accepted, the iBuyer conducts a home inspection to identify necessary repairs.
- Closing: The seller chooses a closing date. It can often be within a few weeks if you need a fast sale.
- Resale: The iBuyer may make repairs and then sell the home on the market.
iBuyers provides a fast and convenient selling process. Their offers are usually lower than market value but not as steep as those of a We Buy Ugly Houses type company.
8. It May Be Time For a Short Sale.
When you have no other financial options, a short sale can give you the best chance of getting out from under your home.
In an economic downturn, some homeowners lack equity. They owe more on their mortgage than their homes are worth, and for some, making a short sale is the only way to get out of debt.
Most people fortunate enough have found that real estate markets have recovered enough that they now have equity.
If you are unfortunate enough not out of this position yet, it may not be easy to sell for a price that will pay off your mortgage.
In such a situation, sometimes the best option is a short sale. Some lenders will accept less than what is owed on the mortgage, and some won’t. And not all owners are eligible for a short sale. So, do your research and speak with a real estate attorney before you make a final decision.
Short sales are often the last resort when you don’t have any other, more traditional options for selling your home. There are downsides to short sales, including a hit to your credit and possibly tax ramifications. These are essential considerations you should research.
Final Thoughts
Hopefully, you have enjoyed the suggestions for when your home is not selling. Keep in mind timing is everything in real estate sales. Sometimes, the best approach is to step back and try again at a different time.
In any event, best of luck getting your home sold!
About the Author: Bill Gassett, a nationally recognized leader in his field, provides information on options when your home isn’t selling. He is an expert in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications in which he has been featured. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of Metrowest towns for the last 38+ years.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
