No one tells you... 5 reasons why your Beverly Hills house isn't selling overpriced
Selling a home in Beverly hills is difficult enough by itself, but what about when your Beverly Hills house is not selling? It is a frustrating position to be in since you have probably spent months trying everything possible, and you are not alone.
In a perfect world, selling in a Beverly Hills home would be a linear, unpredictable process. You put your house on the market, you schedule multiple groups, and you get your offer. However, as anyone who has sold a home before knows, it doesn’t always work like this and many people are left wondering why their home isn’t selling — and what they can do about it.
If you live in Beverly Hills and are having trouble selling your house there may be a few reasons why. Houses in the area sit vacant for months or even years due to these 5 challenges:
Homes Are Overpriced
The overprice your home, the smaller the pool of available buyers. Likewise, homes that are priced well above the comps in their neighborhoods—without any distinguishable added value—are going to get passed over. Purchasing a home is a huge investment, and buyers want to make sure they’re getting the best deal possible. An overpriced home is not a good deal, and it’s not going to have much luck selling.
Beverly Hills homes are generally overpriced by almost $500,000. The median price of a two-bedroom, two-bathroom condo in Los Angeles’s Beverly Hills neighborhood is $2 million, according to Zillow. In the rest of Los Angeles, it is closer to $125 per square foot. The average price of a single-family Beverly Hills home is $6.9 million through September 2021. That’s a lot higher than the median price of a single-family house in Los Angeles County as a whole. Why are Beverly Hills homes so expensive? Beverly Hills is one of the wealthiest neighborhoods in Los Angeles County. Beverly Hills has a median family income of $150,000 +. That’s more than double what it is for all of California ($61,500) and almost triple what it is for the United States as a whole ($53,600).
The taxes are high, and Beverly Hills homeowners also see smaller tax deductions because they have fewer exemptions. Why do they have smaller deductions? To begin, Beverly Hills’ home values are typically higher than their West Hollywood counterparts.
Beverly Hills real estate owners can also expect to pay more in insurance premiums because areas of the city is considered a high fire risk area, which will drive up rates for homeowners and renters alike. These homes are considered to be in a high-risk area by insurance providers because Beverly Hills is a more expensive community to evacuate in an emergency.
Many of my clients are surprised by how much extra this adds to their monthly budget as well. I have multiple clients tell me stories about how they initially figured it would be around $400-$500 per month on top of what they were already paying in premiums for one unit with all the common area coverage included.
Home Needs Repairs
Beverly Hills has become so expensive that many buyers out there don’t want to even look at a Beverly Hills home if it needs work because they would rather buy new elsewhere! less than 30 days on market- If you have your house listed for sale and no one’s coming over after more than 30 days, then this might be why you are not getting any offers.
The types of repairs that keep buyers away are the water heater broke and flooded three bathrooms, a home was infested with fleas, another had rodents in it. Vacant and empty if you have an open house but no one is showing up then maybe your Beverly Hills home doesn’t look like someone lives there. Messy – not staged if your Beverly Hills house looks cluttered or poorly organized buyers will walk away because they feel that nobody has been taking care of the property and it would be too much work to fix it themselves. Poor marketing strategy – most people don’t realize how important market penetration can be when trying to sell a Beverly Hills home property!
Homes that need repair typically need a major price decrease. I recommend waiting until after you find a buyer to make any repairs or updates to the home since it will only devalue your property if done before selling.
- Repairs – if your Beverly Hills house requires repairs. The buyers will feel that they’ll need to spend more money on it than what it is worth. They might walk away from the deal altogether! Think about staging when selling your Beverly Hills house. If there are empty rooms in your Beverly Hills home or too much furniture inside of it, this could make potential Buyers feel overwhelmed and stressed out which can lead them to withdraw their offer entirely. My team will help with all those issues, and he has sold hundreds of homes successfully.
Beverly Hills homes in need of major repair are often only worth $200,000 or less. In Beverly Hills home needs to be very special and unique to sell for more than what it is currently valued at. The Beverly Hills market has become very competitive with so many houses on the market that buyers can afford to be selective when choosing their next dream home!
Rooms, a home was infested with fleas, another had rodents in it. Vacant, and empty if you have an open house but no one is showing up then maybe your Beverly Hills house does not look like someone lives there. Messy not staged if your Beverly Hills house looks cluttered or poorly organized buyers will walk away because they feel that nobody has been taking care of the property and it would be too much work to fix it themselves.
Your Home Isn’t Being Marketed in the Right Places
The methods that your real estate agent uses to market your Beverly Hills home matter a lot. Gone are the days of the glossy print listing being the gold standard for home marketing today’s buyers want tech.
44% of buyers look to the internet first when they are home shopping, versus just 17% who start the search process by contacting a realtor. For sellers, the tech tools that provide the highest quality leads are (1) social media, (2) MLS, and (3) brokerage websites and listing aggregator sites. And considering that 76% of all buyers find their home using a mobile device, it’s safe to say that relying on tech-based marketing isn’t just preferred, it’s required.
Old school realtors will remember a time when this wasn’t the case. It certainly would have been hard to predict that social media would outrank Multiple Listing Services (MLS). As the go-to digital hub for finding listings, buyers would be significantly more likely to start their searches on their own with the help of the internet instead of reaching out to a brokerage firm. As such, some realtors might be resistant to the changing tides, which could lead to outdated marketing practices that don’t meet buyers where they are at.
As a Realtor, it is a job to advocate for your listing and to make sure that every possible avenue for marketing is being explored, particularly the ones that are most likely to draw in buyers. It is also a good idea to engage with the marketing process yourself. Start sharing your listing with your social network and social-based real estate community groups. The more eyes you can get on your listing, the better chance you’ll have of speeding up the sale process.
If your home is sitting on the market and you’re ready to make a change, consider these steps to determine the route of the problem and the possible solutions to fix it.
The first step to correcting a problem is identifying it. As the expert on your home, there may be opportunities for improvement you will not notice because of your familiarity with the property, such as pet-related smells or household clutter. This makes unvarnished opinions your biggest tool to improve your home.
We recommend listening to your Beverly Hills listing agent’s advice on pricing your home, but if you’re concerned the price could be the barrier preventing a sale, it may be time for a price drop. Discuss your concerns with your agent and don’t be afraid to ask questions to understand why your home is priced a certain way.
If updating the listing and adjusting the price doesn’t help, it may mean you need to make changes to the home itself. While you might choose to make cosmetic or other changes, you won’t always get your money back in the sale, so you have to be creative and diligent to determine which changes are worth your time and money.
Erik Brown is a Realtor that can help you with any transaction, especially when you are putting so much money, time, and attention on the line. While providing an excellent marketing strategy for selling your Beverly Hills home fast!
Beverly Hills property market is very competitive, which means that houses are typically listed and sold within a few weeks of going live. If your house is not selling fast enough, it likely needs some attention from an expert who can help with marketing.
Erik Brown (email to: [email protected]) has extensive experience working with all kinds of buyers in Beverly Hills REALTOR & Luxury Home Specialist
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