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Imagine this, you are getting ready to sell one of your investment properties in order to cash in on the appreciation it has experienced and while you expected to see offers to come rolling in, you got nothing. What happened? Why are you having so much trouble selling your property?
Investors dive into the world of real estate because it is always in demand. Regardless of how much the market heats up or cools down, there are always going to be people looking for a place to live. So, with such universal demand, why is it that sometimes you wind up having so much trouble selling your property after it being listed for sale?
There are actually quite a few reasons you may have trouble selling that you should be aware of. So, let us take a look at four of the most common reasons you may not be receiving offers on your property and what you can do about it.
Did you know that sometimes you can have trouble selling a property that still has a mortgage? From penalties, to restrictions, you would be surprised how much trouble selling these properties can be. However, there are techniques to escape these troubles you can employ. If you want to learn more, click the link below to book a free strategy call with our team today.
You Are Listing the House Too High
One of the first things you should look at if you are having trouble selling and are not receiving offers as quickly as you expected is the listing price. When you see your own properties, you are going to be keenly aware of every dollar you have put into it to create the property that it is today, but buyers and the rest of the market will not.
Naturally, you are going to want people to buy your property at a price that covers your investment while turning a meaningful profit, but the market does not always support that. For example, if you list a three-bedroom home at $750,000 but the average three-bedroom in the same area is going for only $550,000, it is going to be a tough sell. After all, why would a buyer want to spend $200,000 more for your house when a home down the street with the same amenities is available.
Before you list a property, take the time to inspect the local market and look at the price range people are selling their properties at. While you can absolutely take the higher end of that range, going beyond that is likely to slow down your selling process. So, if you think your price may be too high and it is causing trouble selling the property, consider lowering it to reflect the current market.
The Property Needs Work
Another frequent problem that can arise that can cause your trouble selling a property is that buyers are viewing the property as too much work to be worth their while. While there is absolutely a market for fixer-uppers, these types of properties do not always sell as quickly as move-in-ready homes.
Fortunately, buyers will often tell you if your property needs work when they come in for a viewing, so a lot of the guess work is taken away. However, solving this problem often comes with a price tag. One of the first things you can do is simply lower the price. Perhaps updating the property may be worth it to a buyer if they are spending $20,000-$50,000 less on the purchase. Alternatively, you can fix your trouble selling the property by going in and completing the work yourself before selling the property, but this will take a significant amount of time and money depending on the issues at hand.
Discover How To Stage A Home With This Step By Step Guide
The Listing is Poorly Done
Sometimes, the property listing can make or break the sale. While hot markets can see properties flying off the MLS (Multiple Listing Service) without as much as photos being uploaded of the homes, that is not always the case. If your listing does not make the property look desirable or properly describe the home, buyers are not going to be interested in putting an offer down. So, you need to make sure the listing is good.
Start by taking plenty of bright, clear photos of the property from all of its best angles. Highlight every single room to the best of your ability. If you exclude certain rooms from the photos, or worse yet do not include photos of the interior, people are going to assume there is a problem with the home that you are trying to hide.
Then, make sure the listing properly describes the home, its condition, and nearby amenities so that buyers know what to expect from the property. If you are struggling, try asking your listing agent for assistance or refer to other listings and follow their examples.
Worse yet sometimes you will have trouble selling because your listing is poorly optimized and does not appear in searches. People write listings in a certain style for a reason – it gets them seen.
The Market Has Slowed Down
Finally, one of the biggest reasons you may be having trouble selling and your property may not be seeing offers is that the market has cooled off and slowed down. Over the last two years the market has been insane with properties coming on and off the market in a matter of one to three days. However, the market has cooled and sometimes it may take a bit longer for offers to start coming in.
While you can wait to see if offers are going to come and you are just being impatient, there are other options. For example, you can always host open houses to encourage people to freely walk in and view the property. This eliminates some of the hesitancy buyers may have about booking showings by allowing them to decide to view a property at a moment’s notice. From there, you can have your realtor on-site helping to take offers or provide further information to help the property sell faster.
If You Are Selling to Buy More Property
If you are in the process of selling your current properties in order to expand your portfolio and buy more, let us help you here at LendCity. Our agents will gladly match you up with a lender to get you the mortgage product you need in order to complete the process. To make sure we get you the best product at the best rate, we take your application across our wide network of lenders and compare each option until we find the one best suited to your financial needs. To start today, visit us online at LendCity.ca or give us a call at 519-960-0370. Alternatively, click the link below to book a free strategy call today.