It's been a common question over the last couple of years among homeowners across the Bay of Plenty – why is my house not selling?

When the downturn hit the property market, many vendors were left high and dry. Previously houses had sold in a matter of weeks, but now they were taking months and months, or not selling at all. Happily, lower interest rates have contributed to a slight pick-up, just as spring hits for 2009. But irrespective of the market's ups and downs, two factors always hold true when selling a house; it's all about price, and promotion. In a market when property values are trending downwards – or even if they're stable – it's fair to say that being priced 10 per cent above market value means it probably won't get sold. So correct pricing is vital. Vendors need to know from their agent what other similar properties have sold for in their neighbourhood. Ideally, vendors should drive-by those houses and compare them with their own in an objective, unemotional fashion. It's easy to feel your house is so much better; you live in it, you love it, possibly you've made big improvements to it. But ultimately the other sales in your suburb tell the story. If you're overpriced, all you're doing is helping to sell the other properties in your neighbourhood. That's because buyers compare your home to the one down the road, which is correctly priced and choose that property over yours. The second principle, promotion, involves the way your home is marketed. You need an agent who knows your neighbourhood, has a high profile in the marketplace and can put together a personalised plan for your property. By personalised, here's an example; let's say your home looks unexceptional from the outside but has a beautiful, renovated interior. What you'd need is a large signboard with stunning interior photos, and a caption along the lines of ‘must be seen' or ‘surprises in store'. The print and internet ads would take the same line. It's essential that the virtues of your home are pitched correctly and to the right target market. So these two factors, price and promotion, work hand in hand. If handled correctly, you stand a very good chance of selling your house in a reasonable time frame.

Vern Rice sells real estate for Eves Realty in Tauranga.