A home that lingers on the market can be a scary scenario for sellers.
They must rethink their strategy about pricing, or consider making upgrades or even delisting the property. 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.
Take time to price the property right
To avoid having a home that sits on the market, make sure it's priced right to begin with.
Using market value as a benchmark for pricing a home can be useful to 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 Brooklyn, 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."
Drop price when response is low
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 expect an automatic price reduction after 30 days.
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 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.”
Delist the home
Temporarily taking down a listing can help reset perception and strategy in most cases. Delisting for a few weeks gives the seller space to review feedback and adjust marketing materials so they can reenter with renewed visibility. Don't delist without a plan to sell, though.
Keep any withdrawal short, McCormack suggested. "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."
Seek a new agent
Giving the listing a fresh start with a new agent is another option for dissatisfied sellers. There are some pitfalls, though. A seller could owe a termination fee to cover the costs of the work the agent has already performed, such as photography, according to Ramsey Solutions, a company whose chief executive officer is personal finance expert Dave Ramsey. A listing agreement might require a seller to wait until the end of the contract period before working with another agent.
Consider other ways to boost interest
Changes to the home can often motivate buyers. Small but strategic updates like a fresh coat of neutral paint, modern fixtures and decluttering can dramatically shift first impressions.
Investing in a professional photographer is another tip, one of the most cost-effective ways to boost engagement online.
A seller who has lived in the home can lose objectivity and should ask a trusted friend to give feedback. A home inspector could do a pre-listing inspection and identify any mechanical or structural issues that could thwart a sale.
Pro tip: Sellers who aren’t in a hurry to move should consider renting the home if it’s not selling, Blackwood suggested. “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.