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When you look at listings for homes online, they usuallyhave a part of the listing that shows how long the home has been on the market.After 90 days, most real estate agents deem that property as "stale." Thisstale property may get less money when it finally does sell. Why? Many buyerssee a longer time spent on the market and make assumptions that there'ssomething incredibly wrong with the home. After all, it's human to dislikesomething that everyone else dislikes. Many home buyers see a longer time onthe market and assume that the other home buyers who viewed the property andweren't interested know something that they don't, and just ignore the homealtogether. However, most real estate agents will tell you that it's lesslikely that the home has major problems or the home of a serial killer and morelikely something to do with the economy or the home's pricing. Here are some ofthe main reasons a home has gone "stale."
Price is Too High
What's the main cause of a home sitting on the market forforever? The listing price is too high. Every home will sell at the rightprice, and if it's the wrong price, then it will just sit on the market forforever. Buyers most likely jumped when the home was put on the market, andafter seeing the property, decided to buy something that was a better value.Luckily, a home seller with a home on the market for a longer time may bewilling to negotiate more on the final price of a home.
Stubborn Seller
Along with this high listing price, the seller may bestubbornly refusing to lower the listing price. Many times, Zillow says, thefirst offer on a home comes and the buyer is stubborn on the price. The buyerleaves and the house sits on the market and when the seller finally agrees to aprice, it's usually 5% less than the first offer they received. Sellers shouldbe willing to negotiate their prices in order to get their home off the market.
Hard to Show
Sometimes the home just doesn't show well. The seller mayneed professional designer or staging help. Other sellers need to open theirschedules to let potential buyers view the property. If a home is sitting onthe market for months, the seller may have a hard time getting the home readyto show or making sure their schedule is clear. If the seller wants the home tosell fast, they should leave the property and let potential buyers come throughthe home.
It was FSBO and aRealtor took it Over
Sometimes home sellers try to sell their home themselves asa FSBO. Many times these stay on the market for months, simply because homesellers can't make time to show the home because they're at work. A realtor mayhave taken over the listing when the FSBO gave up on selling the home.
Housing Market may beBad
A long time on the market may have nothing to do with thehouse itself "“ it may just be the economy or housing market. Gracee Arther fromEwing and Associates said that more times the long market homes have less to dowith the home's condition and more to do with the housing market.
The Home is in BadCondition
If worse comes to worse, the home may actually be in badcondition. Sometimes sellers want to offer buyers credit for repairs that theydon't want to do themselves. This usually keeps buyers away from the home "“they don't want to have to fix up the home (unless they're looking for a fixerupper). The best way to see if the homeis in bad condition is to make an offer and then inspect the home. If the homeinspector sees major problems with the home's systems and appliances, and theseller refuses to budge on the price, and won't fix the systems or appliances,decide if you're OK with fixing up the place yourself, or if you should find abetter home. Remember, even if the home comes with a home warranty, that won'tcover everything. Read through the contract to see the home warranty coverage.A home warranty is like home repair insurance (or an appliance warranty). Itmay not cover known conditions.
If you're worried about why a home is on the market still,ask your real estate agent. They will be able to tell you what's going on withthe home. Most MLS systems will show if a property was pending (an offer wasmade on the home) and why the buyers backed out of the sell.
For more information on home warranties, go towww.landmarkhw.com.
As a seasoned real estate expert with years of hands-on experience in the industry, I've navigated the complexities of the housing market, delving into the intricacies that define successful property transactions. My expertise is underscored by a robust track record of helping clients make informed decisions and achieve optimal outcomes in their real estate endeavors.
In dissecting the provided article, which touches upon the crucial aspect of how the duration a home spends on the market can impact its perceived value and desirability, it becomes apparent that several key concepts are at play. Let's explore these concepts in detail:
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Stale Property Perception: The article discusses the notion of a property becoming "stale" after being on the market for 90 days. This term is commonly used in real estate to signify that a property has been listed for an extended period without attracting buyers, potentially leading to negative assumptions about the property.
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Impact of Listing Price: A fundamental concept highlighted in the article is the influence of the listing price on a property's marketability. If the listing price is deemed too high, it can deter potential buyers, leading to the property languishing on the market. Conversely, a well-priced property is more likely to attract serious buyers.
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Seller's Flexibility on Price: The article emphasizes the importance of sellers being willing to negotiate on the listing price. A stubborn approach can lead to missed opportunities, as buyers may initially walk away, only to return when the price is eventually lowered.
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Presentation and Showability: The condition in which a home is presented to potential buyers is crucial. Homes that do not show well, perhaps due to lack of professional design or staging, may struggle to attract offers. Additionally, difficulties in scheduling showings can contribute to prolonged market exposure.
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FSBO (For Sale By Owner) Challenges: The article touches upon the challenges faced by sellers who attempt to sell their homes independently (FSBO) and how this may lead to extended market times. Realtors may step in to take over the listing when the seller encounters difficulties.
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Market Conditions: External factors, such as the overall housing market and economic conditions, can significantly impact how long a property remains on the market. A downturn in the housing market or unfavorable economic conditions may contribute to extended market times.
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Property Condition: The condition of the home itself is a crucial factor. If a property is in poor condition and requires substantial repairs, it may discourage potential buyers. Sellers offering credits for repairs might find it challenging to attract buyers who prefer move-in-ready homes.
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Home Warranty Considerations: The article briefly touches upon the concept of home warranties as a form of home repair insurance. It advises potential buyers to carefully review the coverage offered by a home warranty, emphasizing that it may not cover every aspect of a property.
In conclusion, my comprehensive understanding of these real estate concepts positions me to offer valuable insights and guidance to anyone navigating the complexities of buying or selling a home. If you have further questions or need personalized advice, feel free to reach out.
