This is a huge question that many home sellers end up asking their realtors. In truth there is no iron clad answer but rather a group of possibilities that could be factors in the situation. Most sellers when confronted with such a situation are hesitant to make the necessary changes due to the fact that these changes can cut into their profit margin. The things that they have to remember is that if the home does not sell, there is no profit. Let's have a look at a few of the "usual suspects" when a home has little or no action on the market.
Overpriced - Much of the time if a home is not selling then chances are it is overpriced. When a realtor or agent does a CMA it gives a good indication of what home in the area are selling for. Now, this does not decide the selling price, that can only be done by the seller with advice from their agent. Sometimes home sellers tend to price their home with emotion, not logic. They try to put a price on the feelings, events, and memories that exist in the home and that is simply not possible. Buyers will not see the value in paying for someone else's memories. A home should be priced strictly on the comps (comparable homes in the area either listed or recently sold) and the other major assets that the home possesses.
Dirty - Home buyers are a finicky lot and they don't want to see the seller's mess. Bits of clutter and personal belongings hanging about can easily ruin someone's impression of a home. If the home is too cluttered people will not be able to view the home properly and if they cannot view properly there is little chance that they will buy.
CRAZY NEIGHBORS! - This is more about location and not the relative sanity of the people next door. That being said; if the neighbors have a horrible botch of a home with unkempt property, cars rotting in the front yard and there are constant loud parties or some such event it can be difficult to help the average buyer overcome their hesitation. Unfortunately there is not much that can be done about this kind of situation.
Reputation - One unfortunate result of a home being on the market for a length of time is that fact that it gains a reputation amongst the home buying & selling community. Homes that are listed for a long time sometimes become known as un-sellable. The seller is then left with the responsibility to make the necessary changes in order to garner a positive buzz about the home.
This is not by any stretch of the imagination a comprehensive list of reasons why a home is not selling. If you are in this situation, talk to your agent and see if there are any things that need doing in order to rectify the problem. Make whatever changes are necessary and maybe drop the price a bit. It's costing you every day the home does not sell.
