Thursday, May 10, 2012

Leawood, Kansas home does not sell with 1 year - What should we do? Leawood, KS. Real Estate

Question: Our Leawood house has been listed for over a year with no showings other than the ones we show ourselves at open houses we hold! Our Realtor has offered no guidance on what we can do to prepare our home and buyers at our open houses say the home is spotless and looks great. Other homes in the area are selling within 90 days and our home is now priced below them. Our current REALTOR is our second REALTOR, both are from large are brokerages. It does not seem both REALTORS did much to market our home. Both relied on their companies name and offered no samples of marketing when requested. What else can we do? We are located close to schools in a wonderful subdivision and have great parks nearby. The house is two years old, has granite countertops, stainless steel appliances, a large custom deck, and a spacious finished basement with a media room. Our yard is professionally landscaped and the backyard is fenced. We hold open houses at least three weeks a month. What should we do now? 
Kenneth R. from Leawood, Kansas

Answer: Thanks for your question, Kenneth. I tried to look up your home on the MLS to offer some advice but I was not able to find your home, so I will be kind of generic on my advice.

First, you are experiencing what we call in the real estate community as "Worn". When a nice home is on the market for a long period of time and it doesn't sell, home buyers think that their is something wrong with the home. Although pricing is the number 1 reason for homes to not sell, home buyers figure that homes that have been on the market for a long period of time is probably because there is a structural, cosmetic or mechanical issue. 

Typically, homes that are listed to high will eventually sell, but at a much lower priced than if they were listed at the correct price at the beginning.

I would suggest having a Salablity Checklist preformed on your home; as well as, an updated pricing analysis. We do this on all pf our listings. The 500 websites we choose to market our listings will not be effective if we have listed the home at the wrong price and have staged the home incorrectly.

Here is a copy of our Salability Checklist. This is why our listings sell for Top Dollar in 30 days.

Saleability Checklist

Perils Of Overpricing
When selling a home, the price you set is a critical factor in the return you'll receive. The correct price is determined by the size, condition and location of your home, what comparable homes are selling for at the time you list your home, and the balance of supply and demand in your area.
Overpricing your home is one of the biggest mistakes you could make. If you know what your home is truly worth, you should set your price no more than 5% higher. That gives you plenty of room for negotiation.
There are several reasons why overpricing won't work to your advantage, namely:
- Limits Buyers
Prospective buyers that you want to attract won't see your house because they are only looking at homes within their price range. Other buyers who may see your house realize that they can get more for their money elsewhere.
- Limits Showings
Other real estate agents may be reluctant to show your property if it is overpriced.
- Sells The Competition
Agents may use this home to sell against other homes that are more attractively priced. If your home is the highest priced in the area, it may sit unsold until all the similar homes have sold. Because new homes keep coming on the market, this could continue until you reduce your price.
- Lose The '30-Day' Advantage
A home sells best the first 30 days after it goes on the market. There is typically a backlog of buyers waiting to look at homes as they first come on the market. If your home is initially overpriced, you'll lose these buyers and the 30-day advantage.
- Listing Gets Stale
When a home is on the market beyond the average selling time, buyers may think that there's something wrong with the property.
- Difficult To Finance
Even if a buyer is willing to pay the high price, an appraisal at that price may be difficult to get and lenders may not be able to provide a loan.
- Lower Price
To eventually sell the home, you may have to reduce the price, sometimes, several times. In the end you lose twice, a lower sales price and a slower sale.

If 25 of the 33 criteria are checked it is almost certain that your property will sell.

  1. Priced below the estimated home value [ ] Yes [ ] No
  2. Priced below the Zillow Estimate [ ] Yes [ ] No
  3. Priced below the Yahoo Real Estate Estimate [ ] Yes [ ] No
  4. Priced below within the RPR estimate [ ] Yes [ ] No
  5. Priced below the average square foot pricing [ ] Yes [ ] No
  6. Priced below average for area [ ] Yes [ ] No
  7. Priced below county tax appraisal [ ] Yes [ ] No
  8. Condition of home is above average excluding distressed homes [ ] Yes [ ] No
  9. Owner financing is available [ ] Yes [ ] No
  10. Special financing available [ ] Yes [ ] No
  11. Seller to pay buyer normal buyers closing cost [ ] Yes [ ] No
  12. Postdated price reduction [ ] Yes [ ] No
  13. Even sales price [ ] Yes [ ] No
  14. Above average DOM listing agreement [ ] Yes [ ] No
  15. Above market commission [ ] Yes [ ] No
  16. Easy access to property- Go and Show [ ] Yes [ ] No
  17. Yard sign in front of home [ ] Yes [ ] No
  18. Immediate possession available [ ] Yes [ ] No
  19. Matching stainless steel appliances [ ] Yes [ ] No
  20. Refrigerator included [ ] Yes [ ] No
  21. Home has granite counter tops [ ] Yes [ ] No
  22. Home features a 2 story entry [ ] Yes [ ] No
  23. Home sits on a desirable cul-de-sac lot or similar lot [ ] Yes [ ] No
  24. Home has a finished basement [ ] Yes [ ] No
  25. Home has a walkout basement [ ] Yes [ ] No
  26. Home has neutral matching d├ęcor [ ] Yes [ ] No
  27. Home has great curb appeal [ ] Yes [ ] No
  28. Seller has pre-ordered an appraisal [ ] Yes [ ] No
  29. Seller has pre-ordered an inspection [ ] Yes [ ] No
  30. Seller is offering a Home Protection Plan [ ] Yes [ ] No
  31. No required contingencies are involved [ ] Yes [ ] No
  32. Seller will complete obvious repairs [ ] Yes [ ] No
  33. Seller has signed the Saleability Checklist [ ] Yes [ ] No
We just listed a ranch home in Olathe, Kansas that had been on the market for over a year with several real estate agents. After doing the Salability Checklist and sharing with the seller, we got an accepted contract within 30 days.

RE/MAX sells more homes than any other real estate company.
For a reason...should we talk?

Another blog post written by:
The Real Estate Wizard of Kansas City

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