Why Your Listing With a Great Price and Fantastic Curb Appeal Isn’t Getting Offers
Your listing is part of an HOA community with really high fees. The home shows well, has awesome upgrades, and is the lowest priced. The problem? Zero offers.
Your listing isn’t getting any offers but it has great curb appeal, it’s priced low (and is getting tons of showings) but it has really high HOAs. Which of the following do you have the ability to improve?
a. The look
b. The price
c. The HOA fees
I know this looks like a trick question. And yes, it’s one of those questions where you have to pick the best answer. So with that said, there is only one thing that you can change: B. Price.
And no, it’s not ideal but you’re getting tons of showings so clearly the home looks great. I don’t care how good of a negotiator you are, you can’t reduce the HOA fees. Sorry. The only thing you have to leverage is the price. Sounds like bad news, right? It doesn’t have to be.
It starts with transparency. Don’t let your clients believe that you aren’t doing your job! The reality is that you are marketing the home, it has curb appeal, potential buyers are looking at it but they aren’t writing any offers.
Every time the home has a showing, you need to let your clients know. You also have to follow that information with… “and unfortunately, it doesn’t look like they are going to write an offer.”
Use Your Ammo
Luckily you also have a set of tools to back you up.
TOOL #1: Research
Research the average listing to pending days for a home in your particular neighborhood. If the house that you are listing fall within those days then keep doing what you’re doing. But if it’s not, then you need to communicate that to your seller.
TOOL #2: Communicate
Explain to your sellers that the home has been on the market longer than the average home in the area. Tell them what the average days are from listing to pending. And then let them know this fact leads you to believe that the home is priced too high (even if it is the lowest priced… it can still be priced too high). Follow this up by explaining that the most likely reason is that HOA fees are affecting the buyer’s decisions.
TOOL #3: Feedback
Get more all the information by calling the buyer’s agents and asking why the buyer didn’t write an offer. That data and feedback is going to help you when you talk to your seller.
TOOL #4: Calculate
Call your lender and have them help you figure out what a buyer can get for the cost of the mortgage plus HOA fees. Then calculate the price of the home so you can capture buyers who are in a lower price bracket—these buyers might be willing to make an offer even though the HOA fees are really high.
I know it feels uncomfortable to tell your client “bad” news but all you are doing is delivering the facts. Ultimately, lowering the price is their decision to make. You are doing your due diligence when you thoroughly communicate and provide all the details. It’s not just something nice. It’s not going above and beyond— it’s your obligation!
And remember, if you’re doing your job then it’s not your fault. It’s the market. You’re getting people in the door. The fact that those people aren’t writing an offer is not a reflection of your hard work. And while you can’t control the market, it’s your responsibility to verbalize the market.
Be smart, be transparent, and overcommunicate.