A home languishing on any real estate market is one of life’s more frustrating ordeals, particularly if it’s in a destination location like Los Cabos. It’s especially hard if you’ve owned the home for some time, there’s that emotional attachment that tells you, “Hey, this is an incredible house. It should sell really fast!”
There are several common reasons that homes don’t sell and one of these may just be the solution to your problem.
1. The home is overpriced
The most common reason a home in Los Cabos sits on the market is that it’s overpriced. Asking too much for the home could be a result of you ignoring your real estate agent’s pricing advice, an error on the part of your real estate agent in pricing the home or because the market prices corrected and your agent hasn’t caught up to the change.
Regardless of the reason why dropping your price will renew interest in it and will help get it sold.
In a nutshell, homes sell for what buyers are willing to pay, not what sellers hope to get. The only way to know what a buyer is willing to pay for a home like yours is to check the sale prices (not the asking price of active listings) of homes similar to yours.
Your agent should be presenting sales information about comparable homes to yours and recommending pricing that will drive interest and result in showings. If your agent did this and you ignored their recommendation and chose a higher price, chances are that is the reason your home hasn’t sold. If you are priced right then there may be other reasons.
2. Your home needs work
Homes that sell the fastest are priced right and they’re in good condition. What do we mean by “good?” They have curb appeal – the exterior reflects pride of ownership, not necessarily opulence. The home and trim painting are fresh, roof, decks, and patios are in good condition and the landscaping is tidy.
Inside, the paint is fresh, the floors are clean, the house is neat and furniture is tasteful and in good shape. The buyer has the impression that they can move right in and not have to work to make the home livable. Buyers coming to Los Cabos are looking for move in ready! Few if any are on for a fixer-upper.
Many people tend to be so fond of their home that they notice their flaws. The ideal way to get feedback on its condition is 1) have your agent advise you on preparation and staging before listing and take action before the home is photographed and 2) have your agent solicit feedback from the buyers’ agents who’ve brought their clients to the home.
3. Real estate marketing
Your real estate agent’s primary job is to market your home. If it’s priced right and in good condition, the next biggest reason it’s not selling could be because you have an agent who isn’t marketing your home.
Get together with your agent and find out what is being done to market the home. If the only marketing that’s been done is an MLS listing, cell phone photos and, perhaps, a blurb on some freebie websites, chances are your realtor doesn’t believe the price you want will generate interest and won’t put the effort into marketing to bring potential buyers through the door. A big reason for a realtor’s meager effort and lack of investment in a marketing campaign has to do with failing to price your home right.
If you are priced right then you should expect your agent will get professional photos taken and put a solid marketing plan into motion. If not then you should consider a realtor that is prepared to put a marketing plan together to go with that competitive price.
Professional photos are a real key! If a home looks great online, it will get people in the door and this is the only way to get offers coming in.
If you are convinced your agent is doing a stellar job, ask yourself if you’re flexible enough in showing the home. One of the biggest challenges for sellers living in the home is having to keep it in model-home condition despite life continuing to happen – kids, pets, guests and all of that.
Lastly, even in the hottest sellers’ markets anywhere there are slow periods, so if you’ve done all you can to ensure that your home is competitive, relax and give it more time. Summer in Cabo (June to October) is typically slow so hold tight and wait for high season in November!!