When you shop for clothes or even a new car, do you worry about how long they’ve been for sale? If you liked them, you’d probably go through with their purchase without wondering who didn’t want them before you or how long they’d been available to buy.
But what about real estate? If you found a great home that fits your needs, does the number of days that house has been for sale make a difference to you? While buying clothes or a car isn’t the same as purchasing a home, many of the same reasons you wouldn’t pass up that sweater because it’s been on the shelf for too long can apply when choosing a home.
Some people believe a property that has been on the market for a while must have serious problems. Others believe that a house on the market for a long period means that the seller is desperate and will accept a low offer.
A Texas realtor can help explain why certain homes have spent a lot of time on the market. Excluding overpricing, which is the most common reason a home will linger on the market, there are several reasons a quality piece of property may not sell quickly:
The status hasn’t been updated properly. The statistic days on market (DOM) is the number of days a property listing has an active status in a listing service. Normally, the property’s status is changed to pending during the period between the seller’s acceptance of an offer and the actual closing. The DOM will reset if a contract falls through, but if the agent fails to update the status, the DOM continue to rise, even though the home was ostensibly off the market. This happens and, through no fault of the homeowner, the property may now have a deceptively high DOM.
The house isn’t ready to sell. Some houses are listed before they’re totally ready to sell – perhaps the seller put the house on the market despite the fact that it’s undergoing remodeling or repairs. In this case, the home was listed too early and probably won’t show well. The days on market will go up, but after renovations it looks different and it will show better.
The seller isn’t motivated. There are also situations in which the sellers are not particularly motivated. Maybe they don’t need to sell and are just testing the market. Perhaps they’ve got a price in mind and are willing to wait for the market to catch up with that number.
The house doesn’t stand out during a search. A number of properties simply go unnoticed, which is obviously a roadblock to a successful and timely sale. Maybe the listing price is $205,000 and the seller is missing buyers whose searches range from $150,000-$200,000. Some homes may be occupied by tenants, while others may not be marketed well.
Just like any statistic, DOM may be useful for overall market analysis, but it may not matter much when it comes to whether you should buy. Regardless of the state of the real estate market, there are many reasons a property may linger. Remember, all that really matters is what you think.
For more information about buying or selling real estate or to find a Texas realtor, visit TexasRealEstate.com.
For your real estate needs, please contact Waymond Lightfoot (RE/MAX Genesis) at 210-386-5201.