One of the Most Asked Buyer Question...
…is “How long has the home been on the market?”
Here are some of the many reasons for asking, especially on homes with extended market times.
- Generally, the longer a home has been on the market, the less confident the buyer is about the home’s value and the less attention it gets. In contrast, a newer listing garners lots of interest from buyers and their agents.
Some listing reps relist the property to appear as a new listing to revive interest. A buy’s rep can easily check the property’s history for time on the market.
- Buyers may suspect that something may be wrong with the house.
- Buyers shop and might view the price as too high compared to similar homes for sale and sold. This causes the home to loiter on the market.
- If a buyer questions the seller’s motivation due to price and time on the market, he might consider going to the trouble of making an offer a waste of time.
- At times a buyer is willing to test the seller’s motivation with an offer that may be low or at least appear low to the seller.
There’s times when a seller is unwilling to drop the price but informs the representative that he/she is prepared to negotiate. “Just bring me an offer,” they’ll declare. Yet few if any buyers view the home because they see it as overpriced. More often the seller has to adjust the price to attract buyer interest.
- A home’s uniqueness can make it difficult to compare. This too can result in a selling time that is longer than market averages. Yet in due time, the buyer who appreciates the home and understands will come along. Custom homes and high end homes fall into this category.
- Some sellers owe a lot on the house because of too much equity takeout. They price their home too high and it sits.
- If a home was purchased in a seller’s market and may currently be worth less. If possible, sellers should keep the home for a longer period of time. Understandably these sellers don’t want to lose money and overprice the home which makes it languish on the market.
Today, depending on where you are in the Niagara Region, on average a home may take from about 60 to 110 plus days to sell. Homes that sell within average market times are typically competitively priced.
A seller’s motivation on listings with long market times is best determined if the price has been reduced one or more times.