Every market has gainers and losers and there are certainly factors that make or break a deal. Naturally, experienced and knowledge is king and gives the edge over the other market players. Efforts at selling your property can be a fruitless undertaking, without the help of knowledgeable market participants. You may see cash changing hands but not with you. Here are six reasons why this happens, it is not exhaustive but it is a starting point to analyze why your property sale may flop.
1. Not setting a realistic price
In the business of buying and selling, ultimately the buyer decides what price the seller gets. It’s no less a fact in real estate markets. As a property owner, you are bound to have a higher estimate of the value of your property which may go beyond the objective criteria. Perhaps due to historical experiences with the house/neighborhood which create emotional attachments. As a result, you may factor in these into the price subconsciously thereby overstating it. The market is less likely to get excited. That is why it is advisable to seek a professional’s opinion on the value of the property before putting it out for sale.
2. Not disclosing the property’s defects
It is human nature in a give and take transaction, to want to be the one tipping the balance, or to gain the upper hand. This is especially true when one party has more knowledge about the object of exchange than the other. Economists sometimes refer to this as asymmetric information. The same inclination may cause a seller, keen on getting the highest possible price off a property, to bypass disclosure disclosure requirements about the state of the property. Foreseeing such a possibility, buyers acting in their own interest proceed to carry out their due diligence, making the sellers ‘gesture’ of none effect. Unless the buyer is on a house flipping mission, there is only one way and that is to play by the rules.
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3. Not Getting the timing right
Timing is everything, and markets are not independent animals. They are influenced by sentiments, seasons, key events, economic cycles et cetera., all of which are anchored on time. A simple mistake like putting the property out in the market during school opening time when people are preoccupied with their children’s education may lead to a lot of discouragement on your part, if you expected a quick sale. Buyers may have even saved the money for home buying but circumstances may dim their spending mood, and they could shy away from making such significant purchases at the time.
4. Not making a good presentation
Even if you have the newest property in the neighbourhood, making a bad impression will ultimately reduce your chances of selling. In the era of listings and digital marketing, the list you can do is to take high quality photos of the property and provide appropriate details. The aim is to capture the buyer’s attention the first time and to keep them fully informed shortly thereafter (this includes putting the property in the right condition for a site visit). You do not want the potential client to flip over your listings because of a poor first impression. The other shortfall is not listing your property on a visible platform. The internet is full of thousands of such platforms, thus the probability of your property getting noticed is really marginal.
Also Read; How to Build a Profitable Property Portfolio
5. Not getting the right agent
Most agents are local market experts. It’s part of their job to gather information on aspects such as supply and demand, and to know who needs what type of property and who’s selling. They are also experts of the transaction process. Yet there are good and not so good agents, which is why you need to be selective when selecting your agent. It may make the difference between whether you property stays on the market for one month or three months, while you choke economically for lack of cash flow.
6. Not knowing why you are not selling
This can be a most frustrating event. Knowing that there is a problem while not knowing the cause of the problem, can be an exhausting and helpless situation. It can lead you to give up on selling the property or to abandon things to chance. It is best to seek answers with the help of professionals in the market. It could be one of the above reasons or it could be something totally unrelated, but the sooner you find it the higher the chances of making amends.