Home Is Not Selling? Raise The Price!

Posted by Joe Manausa on Wednesday, July 17th, 2013 at 10:12am.

Here's a new technique if your home is not selling ... how about raising the price!

Anybody who has followed the Tallahassee Real Estate Blog for any time knows that I do not pull punches when it comes to some of the shenanigans pulled by "professionals" in our industry.

Well today I'll do my quick mini-rant on behalf of all those home sellers who are getting horrible advice from real estate agents who have recommended that they raise their price.

Why Your Home Is Not Selling

First of all, you have to wonder why your home is not selling. Perhaps buyers think it is too good of a deal, and maybe if you raise your price they will think it is more fair that way. {Sarcasm}

Or maybe everybody looking for a home like yours would have never thought to look in a lower price range. {Sarcasm}

More likely, your home is not selling because it does not compare favorably with other homes being marketed at the same price.

See, that's really it. When they look at a list of homes for sale all priced like yours, they like the other ones better. Yours is over-priced and must be reduced (or you need to wait for the market to catch up to your price). So why on earth would you raise the price and make it compare even less-favorably than it already does?

What To Do When Your Home Is Not Selling

House Is Not SellingIf a real estate agent recommends you raise your price, you have to ask them why? If you've added a pool since you first listed it or perhaps added onto the home during the listing, maybe that could make sense (but who does these types of things when they are trying to move?).

If you get a crazy answer like "let's shake up the market," fire your agent. Immediately.

If you get an answer like "supply is running low, you can get more" then ask them why you are not getting offers (showings?) at your current price. When you don't like their answer, fire your agent. Immediately.

If you are interviewing agents for the job of selling your home, after having been on the market with a previous agent, don't let them price it higher. They most likely are doing that to "win the business" and then will encourage you to reduce the price so that it can sell.

Any time a home is not selling, you only have to ensure that it was exposed to the full market before deciding upon price as the culprit. If the real estate company you chose does a poor job marketing the home on the internet, then maybe you missed a substantial pool of homebuyers. But I suspect you will find it is the market rejecting your price.

The NAR did a survey of home sellers and found that 64% hired the first agent with whom they interviewed ... shame on them. Take the time to hire the best agent you can get, you'll end up putting more money in your pocket then you will hiring one who is not the best.

If you would like more information on selling a house in 2013, just drop me a note and we can schedule a time to review your personal situation and ensure you won't wonder why your home is not selling.

Joe Manausa, MBA is a 27 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.

3 Responses to "Home Is Not Selling? Raise The Price!"

Robin wrote: Sounds like good info but personally I would look for an agent who markets in print as well as on the internet. Yes, there are a lot of people researching on-line but there are also still a lot of people picking up the newspaper and Homes and Land.

Posted on Monday, July 22nd, 2013 at 11:48am.

Joe Manausa, MBA wrote: I would probably say the same thing too Robin if I worked for a newspaper .. :) But I'll go with the metrics that tell us 94% of homebuyers are online. A better ROI requires a bigger online spend to get in front of those 94%.

Posted on Monday, July 22nd, 2013 at 12:08pm.

Nikky wrote: Great COMMON SENSE advice Joe! When I shop for a dress, I might not buy dress A for a $100 because I like dress B better for the same price. But if dress A is priced at $75, suddenly I like it a lot more because I know it's a good deal.

Robin, I agree with Joe. If I am selling my home, I want it to sell FAST. It's been my experience that properties in print medias like H&L are often overpriced and/or no longer available. Buyers are getting smarter. The Internet provides more detailed up-to-date information. Plus for buyers relocating, guaranteed they are surfing the Internet for their new home, not shopping in their new grocery store 100s of miles away for the latest and greatest H&L publication (sarcasm!). Even the Tallahassee Democrat points their buyers and sellers to the Internet!

Posted on Monday, July 22nd, 2013 at 1:02pm.

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