Sep 28
When Your Home Doesn’t Sell
It’s a common question facing many homeowners in today’s market: When your home isn’t selling, what should you do? You can get the word out, improve your curb appeal, update your advertising… but at the end of the day, a bad market is a bad market.
Your basic options are simple: (1) Keep waiting, possibly lowering the price (2) Take your home off the market & rent it instead or (3) Give up.
Option #1. Keep Waiting
Even in the face of plunging home values and an abundance of listed for-sale homes, many homeowners today remain blithely unaware of the realities. Of course, it’s always possible that the right buyer will come along. But leaving a property listed at a too-high price (too high = not similar to competition) means almost certain failure.
One of the smartest ways to grab buyers’ interest is to lower your home price. Let’s face it: buyers are just as worried about losing money by buying your home as you are in selling it. They are aware of the market’s leanings, so they’re not easily swayed into a big purchase. Knocking your price way down may be the best (if not only) way to get their attention.
Leaving your price as it is, waiting for the right buyer, may mean waiting for a very, very long time. Especially as many of today’s experts don’t expect home values to return to normal before 2010.
Option #2: Rent Instead
The obvious negative with this scenario is that you still own a property that may continue to decrease in value. Additionally, you’ll have renters to manage, and any problems/damages will be yours to deal with.
But there are also big positives: Renters can often compensate for your monthly mortgage payments, if applicable. They also can cover all utilities, meaning bills you will be freed from, at least while they live there. In a rough housing market, people will still need places to live, and, if people aren’t buying, they’re certainly renting. This is a good option if you’re looking to ride out the market and recap some of your losses. When things pan out, you can try selling again.
Option #3: Give Up
If you don’t have to move, you can keep living in your home while you wait to determine your next move. You could wait a year or two and try to sell again, or you could just decide to forgo moving altogether. Sometimes, realizing buyers don’t love your home as much as you do can make you want to keep it.
Whatever you decide, it’s important to weigh all the factors together carefully. Being informed about the market is the best way to equip yourself to make a wise decision.
