The hot real estate market marches on. Property values are soaring, sales records are constantly being broken in various regions, and demand far outweighs the current housing inventory.
As of the end of February 2022, there's only a 1.7-month supply of housing nationally, per the National Association of Realtors (NAR). This means it will take a little more than a month to sell the current supply of housing at the current rate.
But what if it's already been months and your property hasn't gotten any offers? There could be any number of reasons buyers aren't falling for its charms. Here are some of the top ones.
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1. Unique features limit the pool of buyers
One-of-a-kind features, such as custom-built furniture that limits the use of a room, can certainly make a home stand out amid others on the market -- unless buyers don't know what to do with or how to live with those features. If this applies to your home, you could be turning away buyers.
This often happens in the luxury real estate market. A musician might have an on-site recording studio -- which is kind of awesome, for the record (pun intended) -- but unless they sell to another musically inclined buyer, that property might not be as enticing to other buyers.
If your property has a feature that simply won't be a hit with the wide majority of buyers, it could pay to alter it or remove it so that the new owners can put their own stamp on the space.
2. There's too much work needed
When inventory is as tight as it's been, it's not surprising that there are a great number of houses being sold as is, meaning that the buyer must accept the house in its current condition. Some buyers have the funds and the time for a gut renovation, or else they want to live in that particular location so badly they'll make it work. But if your home has too many obvious or major defects -- foundation issues, bad roof, etc. -- even the most eager buyers will summon the patience to wait for a property that needs less TLC.
Remember, a move-in ready house is just that -- it's ready for a new owner to move in and start living there. Even if you've decided to forgo any upgrades or other aesthetic enhancements, if everything is in working order, it's move-in ready. This means making sure plumbing and electricity are sound, doors and windows are secure, and the structure is up to code. In other words, the place should be liveable if you want buyers to take an interest, even if you don't have the brand-new granite kitchen they're hoping for.
3. Too many other homes are listed in your immediate area
The ongoing seller's market has emboldened some homeowners who previously hadn't intended on moving to list their homes "just to see" what they can get. Sometimes, this results in numerous For Sale signs going up in front yards on the same block -- which could be bad news for your listing, unless you live in a highly desirable neighborhood.
Supply outweighing demand also happens in condo and co-op buildings. It's normally not an issue if, say, 4A goes up for sale at the same time 3C does, assuming they have different layouts. But if numerous A or C units featuring the same layout, the same square footage, and the same views are all available, it essentially puts the ball in the buyer's court.
If you're in this situation, unless you need to move, it might be worth it to remove your listing until the other identical units sell.
4. It's overpriced
You can't truly predict a bidding war for your property, much less force one. But a home going for well above asking price is the not-so-secret wish of many sellers. If your home's asking price is far above the comparable properties in your town, expect buyers to wait you out -- especially now, as mortgage rates are on the rise. It can be disheartening to drop the price of your home, but if months have gone by without any interest, it might be time to do just that.
It can be difficult to time the real estate market without the benefit of psychic powers. There are news stories of literal burnt-out shells being snapped up by buyers, and there are homes that are far more liveable yet linger on the market. Real estate investing is always a risk, but with a little patience and a good strategy, sellers can still be rewarded in the current market.
