Seven of the Top Reasons Many Homes Don’t Sell
Let’s face it, some homes take a long time to sell if they ever sell at all. For many individuals trying to sell a home, they just can’t wait that long. Whether you’re in foreclosure, inherited a property you don’t want to keep or are facing a divorce, if you need to sell your property quickly, contact We Buy Houses Cash KC. We work with Kansas City area clients to purchase homes for cash with a quick closing timeframe. We also buy homes for cash in Independence, Raytown, Grandview & Overland Park and Kansas City, Ks.
When working with a traditional real estate agent, selling your home can take months. Most real estate agent agreements allow for six months to sell a home. Not only that, but before your home is even listed, the agent will offer suggestions for improvements to be made, then photos must be taken and marketing materials prepared. Once you finally receive an offer, the standard closing time is between 30 and 45 days. The process is long and not everyone has that kind of time to waste.
Many different factors influence the amount of time it takes to sell your home. If you’re worried about the timeframe to sell or the condition of your home, we’re here to help.
Common Reasons Many Homes Don’t Sell
1 – The Condition of the Home
One of the main reasons a home may not sell is that it’s not in good condition. Most real estate agents will want you to make repairs and clean your home before it is listed. Homes with damaged exteriors, like roofs, siding, broken windows, damaged landscaping and more, just don’t offer the curb appeal needed to find a buyer.
Even if a buyer is located, if your home can’t pass inspection, the mortgage lender may not provide financing unless repairs are made. The condition inside your home, like worn carpet, old appliances, damaged walls or water damage, don’t appeal to many buyers. Not only that, but when major systems like the HVAC unit is old or broken, most buyers don’t want to spend the money for repairs.
2 – Bad Location
The location of your home greatly impacts the value of your home. A well-kept home in a bad location won’t have the same value of the exact home in a good location. Many different factors can impact the value of the location. Proximity to railroad tracks, major roads, manufacturing facilities, oil rigs and other disruptive or unsightly features, lowers your home’s value.
Oftentimes, inherited properties may have been in a good location when they were first purchased, but over the years the state of the community shifted reducing the appeal of the neighborhood. This change can make selling the property difficult.
- The State of the Real Estate Market
Another factor outside of the owner’s control is the current state of the real estate market. The real estate market fluctuates. Housing prices aren’t set and may change depending on many factors. One factor that influences home prices and the real estate market overall are interest rates. When interest rates increase, finding financing for buyers becomes more difficult. Higher interest rates mean higher monthly payments, which can disqualify some buyers for financing. In a slow market, houses sit on the market for longer time periods.
4 – Your Home is Listed for the Wrong Price
If you home is priced too high, whether based on location, market conditions or the condition of your home, it won’t sell quickly. In fact, it may never sell until the price is lowered. Houses have to be priced to compete with the competition.
Also, for financing, the appraised value of the property must be greater than the purchase price. Mortgage companies will not approve lending for more than the appraised value of the home. It is critical to price your property accurately if you want it to sell quickly.
5 – Unqualified Real Estate Agent
Like with any other profession, not all real estate agents are good at their job. An unqualified or bad real estate agent may negatively impact the time your home sits on the market. It’s the job of the realtor to promote and find buyers for your home. If they do a poor job on marketing, your home may not sell.
It’s important to read reviews and ask for references before you hire a real estate agent. Remember, your real estate agent will take around 6% of the purchase price of your home for commission. You want to make sure you’re getting your money’s worth.
6 – Too Much Competition
Another factor outside of your control is too much competition. This may happen when a neighborhood experiences shifts in home values. Oftentimes when the market is hot after a cool period, homeowners that have waited for prices to increase all list their homes at the same time. When this happens, the market may become saturated. If your home is not in top shape, it may not be able to beat out the competition for buyers.
7 – Buyers Can’t Get Financing
We touched on this in some of the other points, but most homebuyers are dependent on mortgage financing to purchase a home. Even if a buyer is preapproved, it doesn’t guarantee that financing will come through. This process can mean that your house goes under contract and then the deal falls through.
Mortgage financing must meet many specific requirements, including appraised value, passing inspection, buyer’s financial state and more. Waiting on mortgage approval can be a frustrating process. Also, even under the best conditions, it takes up to 45 days to close once an offer is made. Selling a house to a buyer that must finance the home takes longer.
Sell Your Home Without the Hassle
If you need to sell your home quickly, contact We Buy Houses Cash KC. Our job is to locate houses for real estate investment deals that we then pay cash for. The timeframe to sell a home to us is usually two to three weeks. While some real estate investors promise a closing time of less than a week, we want to be honest from the start. The timeframe is mostly dependent on the title company researching to ensure the home is clear of any liens or judgements. However, our timeframe is much quicker than the traditional real estate process.
Contact us today with questions or to schedule a consultation. We Buy Houses Cash KC prides ourselves on honesty and integrity to help you sell your home quickly.