Why won't my house sell?

Q: Why won't my house sell?

A: There may be several reasons why, but let's consider what has to happen for a house to sell. Selling a house is like putting the pieces of a puzzle in place. All pieces have to fit correctly.

First of all, the house has to be attractive and appealing to buyers. If it's not, forget it.

The biggest mistake many sellers make is pricing their house too high. A buyer who might be interested in the house may skip making an offer on it or may make a low offer. Maybe buyer and seller can meet in the middle. After negotiating back and forth, if there's still no deal, nothing is accomplished.

Even when buyer and seller agree on price, if the buyer is getting a mortgage loan the lender will order an appraisal. If the appraisal comes in lower than the agreed upon price, the seller may have to lower the price to make the deal work.

The mortgage lender will determine the buyer's ability to repay the loan, or whether it's too great a risk to let that buyer have the money. In most cases the loan application must receive final approval by an underwriter, or there's no deal.

So, the seller, the buyer, the appraiser, the loan originator and the underwriter must agree before the seller is able to sell the house. A Realtor tries to get everyone on the same page and make it happen.


 

Does it matter who you list your house with?

Q: Does it matter who you list your house with?
A: It can make a difference to the Seller at the time of sale.  (The buyer doesn’t care who it’s listed with.)  In the following examples, assume that the house sells for the full price of $150,000.

1.  Seller lists house with Company ABC at a price of $150,000 with a sales commission of 6% of the selling price.  Seller sells house.  Pays a commission of $9,000.  Seller saves $00.00.

2. Seller lists house with Michael Dixon Realty, same price, same commission. Seller sells house.  Buyer comes through Michael Dixon Realty, not a second company.  Commission reduced to 4%.  Seller saves $3,000.    

3. Seller is a member of the Chamber of Commerce.  Lists house with Michael Dixon Realty, same price, same commission.  Buyer comes through Michael Dixon Realty.  Commission reduced to 3%. Seller saves $4,500.