When looking at homes buyers first question is usually how long has this home been on the market? It is a good question to ask no doubt since a home that has been sitting on the market are homes that buyers feel they can negotiate more. Some buyers won’t even consider a home that has been on the market a long time which they feel do I want to buy a home nobody else wants? What is wrong with it?
I think important question’s to ask are, what is the status history of the home? Meaning how many times the price has been lowered, what is the difference in the original list price and the current list price, how long has the home been on the market at its current price.
A home could have been sitting on the market for 300 days at a price that was not market value and now is at or even below market value with a price change. In most cases in homes that have high (adom) average days on the market typically you will see the price dropped several times.
So buyers just because a home has been on the market for a long time don’t assume nobody wants it or there is something wrong with it, weigh all the factors I have explained and you may just find yourself a real nice home.
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Dan, great post. This is a topic that has become more and more relevant over the last year. We have the same problem here in East Tennessee. Having said that, I make it a point that when ever I have a listing presentation I stand pretty firm on what I believe the listing price should be according to the comps. If the sellers want to list it higher with the idea of coming down if we have to, I pass. Properly and competitively priced homes sell. More important now than ever.
Hi Annie, Yes great point regarding listing price it is by far the most important factor in selling a home especially nowadays. We work with a lot of buyers and still find homes way overpriced but it has been a lot better lately with homes being priced accordingly to the market conditions.
This is one of reasons I try and convince buyers not to list too high to start off with. Because even though I try to tell my buyers the difference between a house that has been listed for 250 days at the same price vs a house that was just reduced by 20k last week but also has a 250 dom, many buyers see the stat of 250 days on market and will keep walking.
This is a great post! Sometimes there are some diamonds in the rough that were mishandled and lead them to be left stagnet on the market. These are potential great buys as you say since the owner is getting tired of waiting for the home to sell.
Good post Dan, I think that people need to understand that there is more to the picture than just the length of time the home has been on the market. Thank you for bringing up the more critical points as to the listing history of a home. You should also add to this the number of different listings there are many listing agents will completly reload a listing so it shows fresh again
When a buyer asks me that question I answer it but then I follow up with how long it has been on the market at the current asking price. The home could have been on the market for 250 days. However, if the home was originally listed for $450,000 and was recently lowered to $350,000 two weeks ago then it tells them that it only has been listed at this new price for a short period of time
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Another thing to add is it may be realistic for a $500,000 home to sit on the market for 6 to 8 months. To the uninformed buyer this may seem like a long time but in reality it is simply consistent with that market segment.
I bought my house 2 years ago, and there are 2 homes on our agency, that feature been for agreement the full time.One has been reduced from 180,000 to 135,000. The another has been reduced from 115,000 to 85,000. I am in Tennessee. (rattling cheap to live here…caretaker flashy). When i bought my accommodation it was 100,000. It in 2 life has gained 25,000 in equity…but theres 0 possibility of a sucessful agreement(which is dustlike, because we wouldn’t require to transact it anyways lol). These are homes on an dominion of get 2 miles off the ordinal largest lake in the dos!!! Works not commercialism. It’s a bit distracted. The basic habitation I mentioned, is over 4000sqft, 6 br, 3ba, with a multilevel bedeck off the creation haphazard phenomenon in marketing anymore. G’hazard!! I was sensing at homes in Detroit(true bad areas I change? Dunno haven’t e’er been there) They were commercialism for less than 1000 bucks! Granted the homes weren’t habitable or anything (not to me anyways), but I was noneffervescent baffeled. An investor could come in and rightful buy and buldose all the homes and remain the people…alter trillions formerly everything stabalizes….anyways, enough blabbing. G’hazard with your business.
If the property has been sitting on the market for a long time and you lost any hope to sell it with hundreds of days on the market it’s a good idea to take it off the market for a month or so. When we relist it again in our database the ADOM becomes ZERO again after a month. Then I would recommend Sellers to listen to their Realtors and list the property at a competitive price so they would sell it quickly and hopefully with profit. Sometimes when you price the property lower you can get multiple offers and sell it even for more than the list price was.
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