Black Diamond Real Estate

Because we are a small firm by design, we are personally involved in every step of the buying and selling process, from listings to showings and from contracts to closings. When you have any questions, you deal directly with us.

Why Homes Don’t Sell

The primary reasons why a home doesn’t sell are location, condition, financing, marketing, and price.  

Location is the only factor in which no one has any control over since it cannot be changed.  For example, if a home is located on a busy street or near railroad tracks, this detracts from its value (unless zoning permits it for commercial use in which case it’s highest and best use is most likely not residential property).  On the other hand, if a home is located on a golf course or lake, for example, there are always buyers who are willing to pay more for these unique locations. Of all the determining factors of value, location is the most important.

Another factor that determines a home’s ability is its condition.  If a seller wants to get top dollar for their home, it must be in top condition.  If the home is not in good condition and the seller is not in a position to make repairs it should be priced accordingly.  Common examples that adversely affect a home’s condition are an old roof, old HVAC systems, damp crawl spaces, old windows, and exterior and interior deferred maintenance.

Financing involves a buyer’s ability to obtain a mortgage loan.  This is self-explanatory in that a buyer will need to come up with a larger down payment and have more income to buy an executive type home.  In the $200,000 +/- price range the down payment is less of a factor with FHA loans being prevalent and income playing a larger factor in obtaining a mortgage loan.     

About fifteen years or so ago, in order for buyers to find out about homes for sale in the market area they were looking in, they needed to engage a Realtor to find out about them.  Today when a Realtor markets a home for sale, it is inputted in the Multiple Listing Service (MLS) which streams to a service called ListHub that disseminates the listings to a number of real estate websites such as Realtor.com and the like.  So generally speaking, if your Realtor is a member of MLS, then a seller’s home will be exposed on-line for buyers to see without having to contact a Realtor.  If a buyer is interested in finding out more about this property they will either call the listing agent directly or contact a Realtor friend. This is how the majority of homes are bought and sold.  As a result, Realtors who are members of the local MLS are able to market homes to the public at large like never before. A final word about marketing is that all the marketing in the world won’t sell an overpriced listing, it will just let more people know it is overpriced.

Price is another factor in which a seller has control over it since it is not the Realtor’s job to set the listing price.  The Realtor’s job is to help the seller come up with a list price by performing a Broker’s Price Opinion (BPO) but the seller ultimately determines how much to ask for their home.  Only once a home is listed and exposed on the market will a seller find out what their home is worth.  Based on the number of showings, showing feedback, and offers or lack of offers will a seller get a realistic picture of what buyers are willing or not willing to pay for their home.  Price is primarily a function of time. If a seller is in no hurry to move or can’t or won’t move unless they can get a certain price, they will have to wait longer and hope that the market improves.  If a seller has been relocated, chances are they will need to sell their home relatively quickly and they will either price their home to sell from the onset or reduce the price accordingly to sell at market value.  At the end of the day, a home priced properly overcomes all buyer objections.

Of course, there are other conditions that affect the salability of a home such as the number of bedrooms and bathrooms, upgrades/finishes, the functionality of the home, and the seller’s motivation or reason in wanting to sell.  The purpose of this article was to address the primary factors of why some homes don’t end up selling. 

If you are ready to buy or sell, call  Mary Staton or Bert Ward - they’ll be happy to answer any questions.

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You Can’t Sell A House If Your Spouse Doesn’t Sign

One morning when I was first getting started in real estate sales, I received a call from an older retired man looking to get his home appraised.  I asked what the purpose of the appraisal was for since there are different types of appraisal assignments that can affect an appraiser’s opinion of value.  He advised that he was interested in an appraisal for sale purpose. I let him know I could help sell his home, but if I did, I would not be able to appraise it since it would be a conflict of interest.  The owner decided that since I was an appraiser, a Comparable Market Analysis (CMA) performed by me would serve his interest just as well as an appraisal since he wanted to sell.  

After pulling and reviewing copies of the tax record and deed, a listing appointment was scheduled and I went out the next day to meet with him.  Upon arriving I covered Working With Agents with him and he proceeded to let me know why he wanted to sell.  As it turned out, he had purchased the home for his son to live in while the son looked after him.  The only problem was his son didn’t want to move back to Burlington so my client was moving to Texas to live with him.  He further explained that he was tired of living alone after his wife took him for half of everything he owned. I listened with empathy and promised I would do everything I could to help him sell his home for the best possible price so he could make the move to Texas and be with his son.  

After the second week his home was on the market, it was placed under contract with a financially qualified young couple.  Approximately four weeks later we met the buyers for the first time at the closing table. The first question out of the attorney’s mouth to my seller was, are you still married?  I was thinking this was just a formality and how could this man be married after explicitly telling me about how he had been taken for half of everything he owned? Then he replied yes he was still married.  

After hearing his answer my jaw dropped and I looked across the table at the young couple and their agent, looking at me as if they had just seen a ghost.  We were all taken aback and speechless, except for the attorney. The attorney asked if his wife was still in town to which the seller replied she was. He then asked if he had her phone number and that if he called her, did he see any reason why she would object to coming in to sign the deed?  To which he replied I don’t think so. As good luck and fate would have it, the attorney was able to reach his wife and fifteen minutes later she came in to sign the deed.  

After the closing successfully ended, I asked the attorney how he knew my seller was still married since the public records showed that my seller was the sole owner of record.  The attorney said that he handled the closing of the home when my seller bought it and knew he was married. My seller assumed that since he bought the home without his wife, that it was his to sell without her.  After hearing my seller’s sad story about being left by his wife and that he was the sole owner of record, It never crossed my mind to ask the magic question of whether or not he was still married. After this close encounter, I no longer assume that someone isn’t married just because they have settled up and parted ways.

If you have any questions about what you will need for a home closing, please feel free to reach out to Mary Staton or Bert Ward.

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