Case Study: Houses that are Especially Tough to Sell in Today’s Market

In this market, only the most desirable homes priced correctly will get top dollar. If there are any aspects of your home that are viewed negatively by buyers, your home will rapidly move down their list of favorites. Recognizing that your home may be a tough sell is often half the battle.

A house I listed about a year and a half ago is a good example of this. It’s a nice home but needed a few upgrades inside. The kitchen had old vinyl flooring, there were 4 bedrooms but only one bathroom, and one of the bedrooms had flooring that looked suspiciously like asbestos tile.

It was also located adjacent to train tracks. Active train tracks. Upon which trains roll at all hours of the day and night.

Finally, the house had some issues with the city inspectors because of lead paint. The owner dutifully and honestly disclosed in the condition report that he had knowledge of lead-based paint in the home. Most likely, the lead paint situation was remedied. However, the stigma of something like that can remain for years. When the eventual new owner of the home wants to sell, they may need to disclose the lead paint issue, which may scare off potential buyers years from now.

In the current market, a house like this is going to feel the pain more than one that does not have these “issues.” As I said, I listed the home about 18 months ago. The seller then decided to list with full service, full-price company. They have reduced the price by about 20% since it was listed with me, but at this time it still has not sold.

I’m not trying to be mean to the seller or slag down his home. I’m analyzing this purely from an economic viewpoint. Why would someone buy this house I have described above when there are so many others on the market in the same price range that don’t have these issues? Why would someone risk lead paint or asbestos, lower resale value, plus listen to trains rattle your windows at 3 am? The only possible answers are:

1. Because they fell in love with the house, or
2. Because they got a great deal on it.

The owner has tried to make the best of his situation. His home does have some great qualities, and he insisted on writing the meticulous narrative description. He is trying to make someone fall in love with the home, which is a good course of action. Sometimes you get lucky and that happens. Sometimes you need to make your house a great deal.

The take-home point from this case study is this: Before you list your home for sale, make it as flawless as you can. Eliminate opportunities for people to haggle you down on price wherever you can. Have your home pre-inspected and make the repairs or improvements suggested by the inspector. Do your staging, clean up the yard, take great pictures on a bright sunny day, and make the home accessible to agents by using a lockbox and web-based showing scheduling.
 

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