It is Tough to Sell a Home in Austin. I Can Help.
Michael Jordan’s Unsold Residence, Highland Park, IL
In the summer of 2024, it’s tough to sell an Austin home. Some sellers are delisting. Patiently, they and their agents have endured long. Others are leasing. Such decisions feel defeating. Dreams and plans are put on hold and a persistent dread settles in like morning fog: “Maybe we're stuck here. What can we do?”
Even the rich and famous – you know, the ones who wear success like a custom-tailored suit are struggling. Take Michael Jordan, winner of six NBA championships who owns the “Air Jordan” brand and possessed majority ownership in the Charlotte Hornets – which he sold a year ago for $3 billion. And while he easily sold his franchise, he’s had a heck of a time selling his house. It's been on the market for 12 years. He listed his Chicago residence in 2012 for $21 million. Later that year, he dropped the price to $16 million, a 24% price reduction. In 2015, another price improvement to $14.8 million. The 56,000-square-foot house sits on 7 acres and has received extensive, custom renovations.
I am confident that every detail I’ll present here has been addressed by Mr. Jordan and his agent. In contrast, throughout my seventeen-year career, I’ve seen gut-wrenching examples of why sellers could not find a buyer. And – I might add, I’ve conducted tense conversations with sellers who refused to believe my professional advice. My response? They are the owners. I work for them. We will both live with their decisions. And I will exert all my time and energy to serve them well.
In the first of my two blogs, I will identify the first three reasons why houses fail to sell.
#1 Reason: Some Homes are Priced to Sit. Some are Priced to Sell.
There are three price points sellers must consider.
The price they want.
The price they need.
The price they can get.
In 2020 and 2021, Austin sellers asked for the sun, the moon, and the stars. Buyers paid it. To make sure their offers were accepted, they threw in Venus and Mars. Well, mostly. I vividly recall an appointment with a homeowner in Dripping Springs. Built in the mid-90s, her house featured the original dark green carpet and honey oak cabinets. The exterior needed painting and the roof was iffy. The overgrown vegetation dominated the exterior. During the conversation, she bluntly stated she wanted a specific price – no negotiating. When I asked, “How did you arrive at this number?” She replied, “A developer is building new homes a mile or so away from here. You passed them on your way here. The houses lack personality, and the lots are small. My house is worth more than those cracker boxes.” Before I left, I encouraged her to seek a different Realtor.
Invariably, during my conversation with prospective sellers, the same subject always comes up: “I believe my home is worth…” Their reasons vary.
“My neighbor sold their home last year for the same amount.” (When I accessed the listing, I found the neighbor’s house was completely updated).
“Zillow’s Zestimate tool told me it was worth that much.” (I explain that Texas is a non-disclosure state and that companies like Realtor.Com, Homes.Com, etc. do not know with certainty what your home is worth. I also explain that these companies provide information to hook you into using one of their “approved” agents who pay exorbitant fees in return for the favor.
In contrast with former neighbors and national corporations, I furnish a current, comprehensive market analysis (CMA) report. Within it, I provide detailed comparisons with similar houses sold or currently on the market within their local region. As a licensed professional, I have access to all the recorded details within the MLS (Multiple Listing Service) for Travis, Williamson, and Hays County.
In the end, only one number counts - the amount a buyer is willing to pay. Just ask Jordan.
#2 Reason: First Impressions Matter Much, Lasting Impressions Matter More
Two numbers are often cited when measuring the time it takes to form a first impression: 7 and 30. As in seconds.
First Impressions: When I take prospective buyers on home tours, time is of the essence – especially when they have flown into town for a few days. I’ve lost count of the times buyers have pulled up and starkly said, “Let’s press on. I don’t think we need to see the rest.” When sellers ask, “Ivy, if I were to invest a few dollars into improving my home, what would you suggest?” Unless their front yard jumps and their entry sparkles, I always reply, “Your front yard. We call it ‘curb appeal’ and your appeal needs some pizzazz.”
A modest Pflugerville home I listed after improving its curb appeal.
The second step in first impressions happens when a buyer crosses the threshold. What grabs their attention? Is there a wow factor that causes a pleasant “hmmm…” or a yawning, “huh”?
Lasting Impressions: Buyers will recall the good, the bad, and the ugly.
“I liked the natural wood cabinets.”
“Did you notice the cracked tile in the first bathroom? I wonder if there are foundation issues?”
“Are you talking about the bathroom with the leaky faucet?”
“I really liked the beam over the fireplace. It added a rustic look to the living room.”
“I did too. But overall, the entire space seemed dim.”
“Well, if you opened the dusty drapes and painted the room white, it would help. They were obviously into grays.”
“I loved the laundry room! There was a dedicated sink and storage space galore.”
“Yeah, but the litter box was a little much. I about gagged.”
“Well, did you smell the dog dander? Especially upstairs in the boy’s bedroom?”
“It certainly did not help that the house was so hot. I wonder if there is an issue with the AC?”
“If the house is eight years old, it’s probably the original unit.”
So was this conversation caught on an owner’s home security system.
#3 Reason: Some Sellers Are Too Biased for Their Own Good.
I am resolved to gain feedback from buyer’s agents. “What did your clients think of the home? What stood out the most? Do they have questions or concerns? What do they think about the price?”
Almost all of my sellers welcome input. They want to address anything that could hinder the sale of the home.
In contrast, some sellers seem more interested in defending their house than selling it.
What’s dog dander?
“What do they mean dog dander? I’m offended. My dog is as clean as any human.”
“What’s wrong with gray? I think it is universally appealing and it certainly beats tan, brown, or beige. Am I right?”
“What do they mean my house is too dark? I enjoy my privacy. There is no way I’m opening drapes for some nosy neighbor peering in on me and my things.”
“This house is not too warm. Why waste hard-earned money on AC when nobody is around? I pay the utilities. They don’t.”
“I paid good money to an interior designer. She selected mustard yellow and purple paint. I’m not about to change a thing. Buyers can take it or leave it.”
“Everything works fine. I’ve lived in this house for eight years and never had a problem. I’ve not even had to change the furnace filters.”
Right now, it is tough to sell a home in Austin but our attitude can make a huge difference. I pledge to do all I can to serve my sellers. I bring every ounce of energy, and every professional skill, every single day, to every one of my clients. When buyers tell me their thoughts, I want to marshall all our resources to address their concerns. Here is the new harsh reality. Buyers are more exacting than ever. Their demands may seem obtrusive, but such is the current climate. My goal is singular: do all I can to bring my sellers to closing.
In my next blog, I will delve into greater details on what I provide my sellers before we list and, just as importantly, what I do after we list.