Today is a great time to be a residential sales agent or a home seller. Yet, perhaps you've noticed some homes in your neighborhood aren't selling. Here are the five key reasons why, even in the current hot market:

1 - THE HOME IS OVERPRICED. This is the primary reason some homes don't sell. Buyers are not dummies. After spending a week or two in the local home sales marketplace, they usually can spot an overpriced (or under priced) home. If a home is overpriced, buyers often won't make purchase offers. And their buyer's agents usually won't even show them such homes.

If a home doesn't sell within 90 days, unless local economic conditions are bad or the home has another serious drawback, such as a railroad track in the backyard, the residence is probably overpriced.

Market values of homes depend on recent sales (not asking) prices of nearby, comparable homes. For this reason, sellers need to keep up-to-date on actual sales prices of neighborhood homes like theirs.

At the time of listing a home for sale, smart sellers interview at least three agents who sell homes in the vicinity. Each agent should prepare a written comparative market analysis (CMA) for the seller.

The CMA shows (1) recent sales prices of similar nearby homes, (2) asking prices of comparable neighborhood homes (the competition), and (3) asking prices of recently expired competitive listings that didn't sell.

Only after receiving this CMA information from at least three agents is the seller, with the help of the interviewed agents, in a position to set a reasonable asking price (and select the best agent). Before listing a house or condo for sale, sellers should compare CMAs submitted by the agents interviewed to see if those agents used the same "comps" to arrive at their suggested asking prices.

2 - THE CONDITION OF THE RESIDENCE. Smart sellers get their residences into tip-top "red-ribbon deal" condition before exposing them to the market. That doesn't mean making extravagant improvements. Most residences usually just need a fresh coat of paint inside and outside, serious cleaning and repairing, new carpeting, and perhaps minor fix-up, such as new light fixtures and landscaping "refreshment."

If the home is hopelessly outdated, take that into consideration when setting the asking price. But let the buyer remodel to his or her taste. Surprisingly, there are many buyers looking for fixer-upper homes for sale at bargain prices.

3 - THE HOME HAS INCURABLE DEFECTS. "There's a buyer for every home, but at the buyer's price" is an old but very true real estate motto. Some residences have incurable defects that cannot be corrected, and these defects must be considered when setting the asking price.

For example, a few days ago at a local coffee shop, I met an old friend who finally bought his first home -- a small condo. He told me what a bargain he got. But then I asked, "Where is it located?" He gave me the address. Even though it's right next to a busy freeway, he's very happy. His purchase price obviously took into consideration the condo's incurable noisy location defect.

Too often, sellers don't consider the incurable drawbacks of their residences because they have become immune to them. But buyers instantly spot such drawbacks, called "functional obsolescence" by appraisers. Examples include a very bad floor plan, location in a high-crime area, and unattractive amenities, such as a tiny yard or small rooms.