Why is my house not selling? It is hard to imagine a more stressful situation than your home won’t sell. Perhaps you have purchased another property that is closing soon, and you require the capital/equity from your current home to close on the next house. It’s quite a predicament to be in.
Another option is that you may be selling to offload what has been an investment for a period of time, but it is now the time to let it go and move on to other opportunities, maybe even to leave the city for greener pastures.
So, your question of Why Is My House Not Selling? It’s simple. There are a few reasons. As much as it may be stressful, frustrating and downright time-consuming, there is one overarching reason with factors contributing to it. Please take a deep breath and be open to what we’re about to disclose.
The Toronto real estate market has been correcting to favour the buyers in recent months. With this in mind, it further complicates the predicted value of a house or condo in the city. Buyers are less likely to pay the previous Spring market prices, while many sellers may be holding out for the high point of values of February 2022. The market has been on a downward value trend. This makes it more difficult to price a home. That being said, it is possible. It’s a matter of managing expectations and accepting today’s market reality and the opportunities that exist today.
The reason is simple: your home is overpriced… now what?
Your Home Is Over Priced
If the marketing and sales strategy is appropriate for your home, homes in Toronto will sell like hotcakes in this market. Period. Seriously, it’s that simple. Despite what you may be reading in media headlines and your home not selling right now, Toronto has a strong housing market. If you are overpriced, the appropriate buyers will not view your property because they believe it is above their budget.
Those who can afford the advertised asking price of your home will pass over it as they know that they can get another house, better finishings, and a different neighbourhood for that same price. That leaves you with no buyers. Maybe, just maybe, you are lucky enough for a wise realtor to show up with an appropriately priced offer which is below the asking price. Still, if you don’t know and are unwilling to accept the reality of the market value, you may decline what is potentially the best offer you will see.
But let me be crystal clear: You will not get an acceptable offer to purchase your home because it is not being marketed appropriately. It is likely that as more and more time passes, you will get an offer that is far too low, and you may have to accept it to move on to your next home, thereby leaving money on the table.
➤ Every good investment needs a well-planned strategy. Start preparing with the following:
- Are Condos A Good Investment?
- How To Submit A Winning Offer On A Home
- The Most Undervalued Condos In Toronto
- Condo vs. House Investment
- Why Parents Should Invest In Toronto Condos For Their Children
- Millennial Home Buying Trends
Reasons Why Your Home May Be Overpriced:
1. Wrong Comparable Sales Being Used
Perhaps houses from finer neighbourhoods were presented to you as “good comparable” sales? Perhaps homes with more upgrades were used as comparables? The list can go on and on. The reality is that if your home does not match buyer’s expectations for that price, they won’t pay your asking price.
2. Home Staging Is Required
Staging is essential in today’s marketplace. With the popularity of home shows, social media and magazines featuring the nicest interiors and exteriors, you must accept that people’s expectations are now high. The fresher, brighter, and more modern-looking you can make a space, the more accessible the buyers can picture themselves in your home. Staging may be the difference maker for selling your home at the current asking price.
3. Not Hiring The Best Professional Photographer
I’m shocked that this is not commonplace. The amount of realtors taking their own pictures with an iPhone or, worse, their ancient BlackBerry continues to shock me. Humans are visual. Again, see the above points regarding social media and TV shows. Remember the adage, a picture says a thousand words. An image triggers so many thoughts, feelings, memories and ideals within the brain. It’s impossible to know just how many neuropathways are engaged. The hope is that your images are excellent so that those neuropathways that are triggered are of positive association!
4. Is The Home Being Marketed Properly?
The human factor is that perhaps the listing is not showing up in the correct region of the city. Maybe the asking price has an extra zero…Yes, I have seen this! Perhaps the body copy is not inspirational or lifestyle-oriented, or worse yet, none. The details matter. The details are essential! Perhaps there is NO marketing plan at all!? That is a topic for another day. It simply is not acceptable.
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We have just sold a house (in 3 days!) in a small town in Eastern Ontario. Our realtors helped us set a reasonable but good price and then staged it to the nth degree. While I think staging looks unrealistic we realized that, as you say, it is expected. They also took excellent photos including shots from above. There was also a floor plan with measurements. I am now looking for a condo in Toronto & find many of the photos very poor and few have floor plans.
There are certainly exceptions these days, congrats!