Real estate is an excellent investment until you realize that no one is showing any interest despite having placed your apartment in listings for many months now. You can say that it is because of the economic downfall that the COVID-19 pandemic brought. Still, if this was the scenario even before the coronavirus hit your area, then something is probably wrong.
Apartments do not sell well under certain circumstances, which we will enumerate in this list. If your apartment is guilty of any of these common reasons, rethink your strategy.
5 Reasons Investors Do Not Buy Your Apartment
1. Your Asking Price Is Too Much
You need to earn a profit for your apartment, but you need to listen to the market if you want to sell successfully. One of the main reasons buyers could have ignored your apartment for so long is that it is way above people’s budgets. They could also see your price as somehow too high for the property you are selling.
If it has been a month since you posted your advertisement and no one has contacted you, then you should make certain adjustments. Make sure to conduct a competition-check every two weeks and see how they adapt to market demands.
If you think you cannot lower your price yet, consider selling your apartment some other time, but you need to beat competitive offers if you want to sell now. Consider dropping your price by a small percentage and see how much of a difference it makes.
2. Your Apartment Is Right Next to an Ongoing Construction Site
No one likes to stay in an apartment surrounded by construction dust and noises. You can either wait until the construction is over or make adjustments to make the place more liveable. For instance, you can invest in soundproofing, or you can lower your asking price. Once again, you need to meet the needs of the market to sell your property successfully.
3. The Maintenance Fee You Are Charging Is Too High
Some tenants look at standard charges like maintenance fees or utilities first before they make their decision. Most of the time, they get discouraged upon seeing the cost of maintenance. If you want to sell the property right away, think of creative ways to get around it. For example, you can offer a reduced total price, give discounts, or make incentives bundled with the property, such as paying up the maintenance fee for half the year.=
4. There Is a Strong Competition
Another possible reason is that there are too many apartments being sold in your neighborhood or your building. You need to keep track of your competition to figure out a strategy. By doing a competitive analysis, you can assess the typical cost in your area and make the proper price adjustments.
If you do not want to adjust the price, add more value to your property that competitors do not have. You can also give brokers incentives so they would recommend your apartment to potential homebuyers.
5. Your Broker Is Not Doing Anything
When you are a victim of this, make sure to raise your concern to their manager or director. However, make sure you have a basis for the claims you will report.
Conclusion
Selling a property is subject to the same rules as other products in the market. You need to highlight its good points. It would be best to make adjustments to capture the market more effectively or offer value buyers cannot resist. More importantly, it is essential to understand why your property is not selling so you can respond appropriately.
If you want to learn more about how to sell an apartment, reach out to us at Buying Apartment Buildings. We have helped many multi-family landlords sell properties quickly without any commission fees. If you want us to help you, give us a call at 1 888-799-7915.