What's New: Q1-2008 Market Results Released

Has your lawn grown up around that "For Sale" sign? Have the wasps moved into the lock box on your front door? Did you just receive an invitation to your real estate agent's retirement party? If so, chances are your home sale fizzled. Here are the six most-common reasons why homes don't sell and what you can do about it.

1- Your home is overpriced. Optimistic home sellers love to parrot the old adage, "There's a buyer for every home." But they often leave off the qualifier: "at the buyer's price." The fact is that buyers, not sellers, ultimately determine the market value of a home. You can ask for the moon and set your listing price well above comparable properties in your neighborhood, but at some point it will be up to you, the seller, to accept what the buyer thinks your home is worth. Overpricing is the most common reason homes don't sell. When you ask an unrealistic price, it sets in motion a process that often works against you.

2- Your home doesn't 'show' well. Your home is competing against shiny new houses in those pristine subdivisions out in the suburbs with their attractive prices, incentives and community amenities. Face it: Even the best old house needs a little makeover if it hopes to attract a qualified buyer.The good news is most of the work will be cosmetic and relatively inexpensive: a new coat of paint, a few attractive window boxes, a thorough cleaning of floors and carpets. Voila! The place may look good enough to reconsider.

3- You're in a bad location. Nothing has a greater effect on your home's value than its location. The point is, location rules in real estate. If your home's location is less than desirable, your options are somewhat limited. The best way to compensate for a poor location is to reduce your asking price or offer attractive incentives such as seller financing or a lease option with rent credit.

4- You have a lousy listing agent. Yep, they exist: Real estate agents who mislead, misfire and misbehave. Their bad advice can cost you plenty in time, money and the sheer hassle of keeping the place show-ready 24/7.

5- You are battling competition or market conditions. We've all heard the terms "buyer's market" and "seller's market." In real estate, market conditions are affected by any number of external forces, some of them predictable (the weather, sort of), some of them unpredictable (the local economy, interest rates, public optimism or pessimism). In a "hot" or seller's market, homes go fast. Inventory (homes on the market) may be low, meaning less competition for you. Chances are better that you will get your asking price in a hot market; in fact, it is not uncommon to even be offered more than your listing price. But in a "flat," "cold" or buyer's market, sales slow to a trickle, inventories grow and buyers can find bargains, especially when they know the seller is motivated (i.e., paying on two mortgages). If you're trying to sell in a flat market, you're not only competing against all that vacant new construction, but against rentals as well. In this case, be prepared to settle for less than top dollar, or wait to sell until the pendulum swings once again in your favor.

6- You have ineffective marketing. Launch a multilevel marketing plan that includes: newspaper, TV ads, weekend open houses, listing fliers, specialized real estate reputable website such as Youppy.com and placements in local real estate publications.

source: Bankrate.com