Your Options When Your Home Isn't Selling

When you are struggling to sell your home after you listed it for sale and believe you've done the best you can it can affect other parts of your life.

Homeowners ask some real estate agents why their home isn't selling. Typically, there's many home owners who share common reasons. Sometimes your circumstances requires a specific course of action.

The following are some of the better options you can consider doing when your home is getting little interest from buyers.  They may involve compromise. They may be less than ideal.

1. Put off selling now.
Even though, you believe your home is in a desirable location in California, a more favorable time to sell your home could be the answer. You may be selling in the middle of the holiday season, when buyers are not preparing to move, or your seller's market may have abruptly hit a decline.

For example, homes in Porter Ranch and nearby have a major natural disaster with a methane gas leak. Some homes in Florida have canals that bring in green algae from the overflowing Lake Okeechobee in .  Once more buyers are satisfied the area is no longer suffering from the natural threats it will be a better time to sell.  Not only will homes sell faster, they will fetch for more money for you.

It’s always smart to speak with a local real estate agent to find out what time of the year is best for homebuyer demand. Anytime should not be their answer.  A good agent knows their details about the neighborhood.

2. Struggling to Make the Payment; Rent It Out
If your financial situation is immediate due to mortgage payments, consider leasing your home to help your situation. Sometimes even renting out a room or two for six to nine months can strengthen your financial situation.  It may not pay the whole mortgage, but it gets you closer, your credit is saved, and you put yourself in a better position to buy your next home.

If you rent out your entire home decide if will you do it yourself or hire a property manager to manage it for you. Some of the nicest and qualified tenants on paper can also become headaches.  Establish house rules and terms of lease termination, including eviction clauses.

3. Sell your home as Rent to own.
Offer your home as a Rent to own or lease option. These are a great way to attract buyers who are not committed to becoming a buyer. Generally, they can rent your home at a price above the normal market rent with an option to buy the home at an agreed upon price.

4. Maybe the problem is your real estate agent
Sometimes the issue with your home not being under contract is because of your agent. Some real estate agents are simply better than others.  It could be attributed to a lack of experience, they're a part-time agent with other daily obligations, or the agent and seller are just not a good fit.

Unfortunately, some real estate agents put very little extra effort into marketing a home. All they do is put your home in the multiple listing service, place a sign in the yard and wait. You signed a contract for them to earn 2.5-5-percent of the sales price for only that?  You might as well pay a discount broker a 1% MLS listing fee to that and if you're a very good marketer, then you do those extra duties.

However, a good real estate agent may get you a sales price above asking and get your home sold seamlessly in 30-45 days.

5. If you are relocating for work, inquire about a guaranteed purchase program.
If your company needs you to relocate, a guaranteed purchase program may be available. Many major companies in Orange County which require employees to transfer hire relocation companies to handle home sales exclusively.

6. Think about a home equity loan for cash.
For homeowners who are selling due to financial challenges, sometimes getting a second mortgage is the way to go when cash is needed quickly.  Another financing option is to refinance your first loan with some cash back.  Be sure to discuss with a financial adviser that has no interest in the sale of your home before you make a final decision.

7. Sell Your Home Under Market Value
Slashing the price by a lot can be only option you have when everything else is not working. Nobody wishes to sell their home for less than its worth, but sometimes it is best way to get it off your hands and accomplish your goal.

The other ways to sell it due to financial issues are a short sale or letting it go to foreclosure which messes up your credit for years.

OC Home Values 30 Years Ago

Trulia recently analyzed median home values from the period 1986 to 2016 of the 100 largest metro areas.

What was learned is that real estate in the Western U.S. (metropolitan areas in California, Oregon, Washington, and Hawaii) generated the highest return of investment, fetching nine spots in the top ten. Trulia determined that people's rising income in the region along with new housing developments were largely responsible for adding to the region's housing price appreciation.

In Orange County, CA  the historical statistics are
1986 median home value: $143,210
2016 median home value: $643,483
Gain: 349.3%

For new homes in the period ended Aug. 8, 2016, Orange County’s median selling price was $742,000, a decline of 7.2 percent from the prior year.

Reports from analysts at PropertyRadar and the California Association of Realtors showed.
1. Sales Decline: Californians purchased 37,823 single-family homes and condominiums in July, which is a decrease of 12.8 percent from July 2015. Year to date, home buyers have purchased 2 percent less from 2015.

The median price of a home in California was $438,000, an increase of 5 percent from 2015. The median-priced for a condo was $417,000, which is a rise of 4.3 percent from $400,000 in July 2015.

Less all-cash buyers in 2016: Does it mean there's less cash-rich buyers or just more people applying for and getting financing?  Not really, as there were 13 percent less buyers not obtaining mortgages in July compared to July 2015.  All-Cash purchases accounted for 18.1 percent of total purchases compared to 19.9 percent from July 2015, and 40 percent of all purchase transactions in August 2011.