In real estate, there is this saying:
Any property can be sold.
Everyday I drive by this house. Days passed. Weeks passed. A couple of months passed. Many years later, the house has still not been sold. Time not only passed, but the house has also aged with time.
I wonder how true is that saying. Hence, we should be asking, “Why is your property not selling?” Or rather, “Why is your property taking so long to sell?”
You’re pricing your house, out of the market.
There was an owner, Paul (not his real name), who wanted to sell his house. He checked online on the property portals; only to discover that his neighbours are also selling theirs at $1,000,000. Paul too wanted to sell his house at $1,000,000.
Herd mentality kicked in.
However, upon further research, Paul learnt that the recent transactions were at $600,000, averagely. The prices advertised on the property portals may be the “market” price, but the real market price is the transacted prices. Transacted prices are the prices at which the house was sold and the property ownership was transferred from the seller to the buyer.
When buying a property, it is about Location, Location, Location. It’s the same when selling a property.
Mr Lang put his house for sale. It’s been many months since he had put it up for sale. Lang’s house was next to a negative element. Examples of negative elements are:
- Fronting the main road,
- Next to a sewerage plant or electricity substation,
- On a steep slope and built on stilts,
Located along the main road, means there is a lot of traffic, noise, and pollution just outside the house. It is tiresome to reverse in and out of the house, as you’ve to constantly watch for oncoming traffic. Then because of the constant cars driving by, honking, and sirens from the emergency vehicles; it can be noisy to get a peaceful and quiet rest.
Next to a sewerage plant or electricity substation raises concern of pollution and radiation. There is the risk of getting cancer and illnesses because of radiations from the high tension towers and electricity substations. Then just stepping out of your house is no pleasant experience, because of the sewerage plant next door.
At $5/month or $50/year, get unlimited, ad-free access to all the stories on Medium. Every week, writers publish thousands of new stories for members on Medium. Stories range across a wide spectrum: personal development, travel, finance, technology, politics, business, real estate, and more. When you read a story for members, a portion of your membership fee directly supports the author through the Medium Partner Program.