What to do when a home isn't selling

Key takeaways

• Pricing a home at or just below market value generates the strongest buyer interest, and overpricing is the most common mistake sellers make.
• If a listing draws no offers or only a handful of showings within the first 10 to 14 days, it is time to reassess the price and the presentation.
• If the home is not selling through traditional channels, sellers have other options, including temporarily delisting, renting the property or marketing directly to home flippers and real estate investors.

A home that lingers on the market can be a scary scenario for sellers.

They must rethink their strategy. Here are a few things to consider when a home isn't selling — and how to prevent that scenario from happening in the first place.

Using market value as a benchmark for pricing a home can be useful for generating buyer interest and lead to selling, depending on your timeline and on local inventory, said Marc Blackwood, president of Real Property Management Pros in Fairfax, Virginia.

"In a seller’s market, slightly above market is fine if the home is turnkey. But if inventory is rising or buyer demand is soft, price just below market value to drive competition," he said. "The longer a home sits, the more leverage buyers gain, and the more likely you’ll need to cut.”

The best strategy is pricing right under the "sweet spot" where a sale will most likely happen, said Veronique Perrin, an agent at Coldwell Banker Warburg in New York.

"This will make for instant solid traction from qualified buyers or their agents who are actively looking and are ready to pounce," she said. "The worst thing you can do is price above market value because then it will be 'crickets' and you will end up chasing the market down."

The way an online listing presents curb appeal and staging can have a substantial impact on a listing price, Perrin said.

"That is why I always recommend my sellers address that before listing because people scroll past it if those pictures do not capture their interest," she said. "I am always amazed at how many buyers do almost all their shopping on their phone."

A seller should reassess list price if there are no offers, or at least a handful of showings, within the first 10 to 14 days, said Blackwood. "Market feedback is your best pricing tool," he said. "If buyers aren’t showing up or are walking away, a 2% to 3% reduction can restart momentum, but only if the home is properly staged and marketed.”

Buyers are getting savvier with all the information available online and basically expect an automatic price reduction after 30 days, Perrin said.

Lowering a listing price doesn't always mean "less," said Blackwood.

"I had a home several years back which sold for more than a previous listing price because it was priced in a way that was basically irresistible," he said. "It takes courage and it does not always work out the way you want, but it can work if market conditions dictate.”

Temporarily taking down a listing can help reset perception and strategy in most cases, said Blackwood. Delisting for a few weeks gives the seller space to review feedback and adjust marketing materials so they can re-enter with renewed visibility, he said. Don't delist without a plan to sell, though, he said.

Keep any withdrawal short, said McCormack. "I'm not a fan of taking the home off the market as there are new swimmers in the buyer pool every day," he said. "If you're not on the market, there's even less likelihood of finding a buyer."

You may think no one wants your house, but there’s a group who does: people who flip homes. Finding a dilapidated home where the investment works is extremely profitable — but it’s also very hard to find. 

You can call a “We Buy Houses” outfit from a street sign. But for a more personal experience, contact your local real estate investor’s club and list it on their website. 

Flippers welcome calls from people trying to sell their home, said Patrick Mirzayan, an agent with eXp Realty in Ashburn, Virginia. 

“As a flipper, it’s always better to speak to the homeowner directly,” Mirzayan said. “When dealing with the homeowner, you make a connection with them. Then they like and trust you cause you’re trying to solve their problem. Then you can take your time, ask the owner directly questions you want answered and it’s a more stress-free process.”

Changes to the home can motivate buyers, said Blackwood. Small but strategic updates like a fresh coat of neutral paint, modern fixtures and decluttering can dramatically change first impressions, he said.

Investing in a professional photographer is another tip, he said. "It's one of the most cost-effective ways to boost engagement online."

A seller who has lived in the home can lose their objectivity and should ask a trusted friend to give feedback, McCormack said. A home inspector could do a pre-listing inspection and identify any mechanical or structural issues that could thwart a sale, he said.

Pro tip: Sellers who aren’t in a hurry to move should consider renting the home if it’s not selling, said Blackwood. “We often work with sellers who make more income renting short-term than taking a lowball offer, especially in school zone neighborhoods or job-growth corridors,” he said.