Sometimes properties take longer than normal to sell for a variety of reasons. If your house has not sold, you may have other options rather than adjusting the price. Common issues are:
- Time or exposure to market
- Functional obsolescence
If we study the list of issues some are seen to be curable while others are not.Location is one issue which is not entirely curable with little that can mitigate its effect. For example if you side onto a busy thoroughfare or active rail line, you could construct a berm or sound wall which can mitigate some of the effect of a poor location but usually locational issues are never fixed. If location cannot be mitigated the only action is to adjust the price or provide more time to market in the hopes of obtaining a buyer which does not find the locational issue negative (the romance of the train in your back-yard…) Examples of this are other cultures which find busy locations normal and even soothing and do not discount their value as much.
Condition of the property is one of that can usually be remedied unless the condition is so poor as to render the efforts useless. Usually this is obvious prior to listing the property, but sometimes we obtain feedback from prospective buyers and other agents that uncovers issues the Seller or Listing real estate agent may have missed. Sometimes a repair as simple as a paint job will fix this issue, but if the condition is extremely poor the best option is to adjust the price.
Time on market is fairly straight-forward. Your real estate agent can provide you with average times on market and if you should allow for at least this length of time in your marketing efforts. Related to time on market is exposure and you need to ensure that your real estate agent is achieving maximum exposure during the time on market. Understand exactly how your real estate agent plans to expose your property to the market before you list your home for sale and ask to obtain marketing reports during the marketing period to account for their progress during the listing. If the time required to sell your home is outside your constraints, then you should adjust the price.
Functional obsolescence are issues such as tiny closets or many small rooms in old homes, old gravity furnaces with coal chutes or uninsulated homes. Issued such as insulation and modernizing can often be performed at a cost but if you are living in the property opening up walls may not be an option. Again in these cases you can either provide for an increase in time on market or an adjustment in price to move the property.
As you can see, some issues are repairable while others are simply not. The best marketing plan will identify issues to the Seller that should be repaired prior to selling and those which should be left alone or adjusted for in the price, and outline a reasonable time on market to achieve your goals. Having an open conversation with your real estate agent about these issues will make it easier for them to give you the best advice on how to achieve your best price within the time frame you have allowed. Sano Stante Real Estate has over three decades of experience in Calgary Real Estate. We can help. Call us