NEW YORK (CNN/Money) -
The phrase "hot housing market" makes you burn ... with resentment.
Other homes are being snatched up left and right. But not yours. And you're baffled.
You shouldn't be, experts say. There are usually clear reasons why a home won't sell -- and often it's the price.
Get the price right
Frustrated home sellers commonly suffer from a costly malady, said Ray Brown, a seasoned real estate broker in San Franciso. He calls it "selective hearing." A broker tells potential clients what their houses can sell for and the clients brush off the advice, don't hire the broker and add $50,000 to the sticker price.
After all, what does the broker know? They've renovated. Homes have appreciated. And besides, the clients think, theirs is the best little house. The right buyer will certainly appreciate that.
Then their house sits on the market for months. The seller gets nervous and lowers the price ... a little. Too little, Brown said. Indeed, he advises, "If you've been aggressively marketing your property for six weeks and if you don't have a bloated dead cow in your front yard, your house is probably priced 10 percent over fair market value."
If that 10 percent drop seems too steep, consider what a lesser discount will cost you. "Toe-dip" price drops may actually prolong the prospect of a sale. If something is overpriced, whether by a little or a lot, it's still not going to budge.
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Brown cited the example of a San Franciso property that originally priced for $995,000 a few years ago and after a bidding frenzy sold for $1.45 million. The new owners made several high-end renovations and due to the collapse of their business put it on the market in January 2002 for $1.63 million. After awhile, with no serious buyers on the radar, they reduced the price to $1.58 million, but nothing happened. The house was still on the market at the end of August, for $1.39 million.
Pay competitive commissions
While price is the biggest bugaboo, there may be other factors delaying sale.
Hesitance to pay a broker's fee, which often is as high as 6 percent of the sales price, can also backfire. Selling a home on your own can be a boon to your bottom line, but it's a lot of work and if you don't do it right you may give up and go with a commissioned real estate agent anyway.
Likewise, negotiating a below-market rate for a broker's commission may not work to your advantage if your home is on a multiple listing, said certified financial planner Barbara Steinmetz, a former real estate broker. Since brokers who show your home will be splitting the commission with the selling agent, they may be more inclined to show prospective buyers comparable homes that pay a higher commission.
Pay attention to the little things
If you think your house is fairly priced, and you're offering a competitive commission, then there may be something about your house that is not equal to others that have sold in your neighborhood. "There's a reason why houses don't sell," Steinmetz said. "(You need to) reevaluate what you're selling."
Consider whether it makes sense to hold more open houses either for prospective buyers or brokers. And ask your agent why he or she thinks buyers aren't biting. The turn-off could be something large, such as structural problems or location. But it also could be something cosmetic, such as the lack of a finished look in the basement, which might be easily remedied by installing inexpensive but good quality carpeting.
Whatever you do, be careful not to overimprove. "Don't try to second-guess what a new buyer would want. You'll guess wrong nine times out of 10," Brown said. "It's better to let the price reflect that you have an older kitchen or bathroom."
And never underestimate the power of charm. Flowers in your entryway, the smell of apple cinnamon wafting from the kitchen, organized closets -- all go a long way toward seducing a potential buyer.
Never forget, Steinmetz said, when you're selling a house, "you're merchandising it."
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