When Realtors Are Not Effective

Realtors Are Great Most Of The Time

Realtors are your best help in finding a perfect Buyer. That is, if your house is not over-financed, it's in a great condition, and you have all the time you need to wait, in most cases, selling through a Realtor will get you best price.

When Realtors Are Not Effective

Unfortunately, sometimes Realtors can't do the job effectively.

Low Equity

A lot of new homes are over-financed and have hardly any equity in them. Adding Realtors commission and closing costs to the loan balance makes the home over priced and causes it not to sell.

Poor Condition

Homes in need of repairs don't sell because that perfect Buyer is scared by the condition. Sometimes homes in bad condition can not be financed through banks. This will eliminate 99% of Buyers - pretty much all of them need financing.

Not Enough Time

Whenever there is short timing fuse it's a problem for a Realtor. For example, in pre-foreclosure, there is not enough time for a Realtor to find a bona-fide Buyer and wait for that Buyer to qualify.

Uncertainty Of Closing

Even when a Realtor finds a Buyer, there are still a lot of things that can go wrong: Buyer's remorse, loan not approved, appraisal or inspection does not pass, bad survey, bad title, etc. When Sellers needs a guarantee the money is coming by certain date they can't tolerate the uncertainty.

The Upfront Expense or Hassle Is Too Much

Some owners don't have funds or desire to complete necessary remodeling, or simply are not willing to go through a hassle of constantly keeping the house in a "ready to show" condition. This category is very common.

These and many other reasons sometimes make a sale through a Realtor less desirable.

Listing Casualties

Costly Myth About "Hot" Market

Unfortunately, there’s a common, costly (to homeowners), myth that the real estate brokerage community maintains at all costs: “the real estate market is hot, and all homes are selling”.

And this myth is easy to carry on too. Usually, at the time of the first meeting between the owners and an agent, (s)he presents a neatly prepared list of homes recently sold, currently under the contract pending closing, and those active listings.

Even though an agent does not say it, such list seems to imply that elusive Buyer is just around the corner. Life feels like better roses. Very few Realtors have guts (and honesty) to also show listings that expired without a sale, or were withdrawn after a long while.

Anybody Can Become A Casualty

Many owners come to find out that they are those withdrawn and expired
“casualties”. Nobody is totally immune to that. In fact, our company is no different. At this very moment we have 2 homes on the market which have not sold in about 6 months or so.

There’s nothing wrong with them: good areas, decent condition. There’s not a good explanation why it happens that way, it just does. We also have a couple of homes which sold in 2-5 days. Go figure.

Soon To Be Foreclosure Candidates

By the 2nd, or 3rd time around the owners may have already moved out and are making payments on an empty home. It's not uncommon to find homes like that going into foreclosure and being repossessed by banks.

If everything could be sold, there is no explanation for hundreds of home posted for the foreclosure auctions each month in local counties.

As if these were not enough, there are all kinds of Problems With Buyers that may cause you a lost sale and cancel your closing at the last minute, when you were ready to get your check.

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