When browsing potential properties, you'll find a lot of information in the listings. One piece of information including in most listings is the length of time the property has been on the market. This is referred to as the "days on market" or "time on market."
You may encounter properties that have been on the market for weeks or even months. Here's what you need to know about purchasing a property that's for sale for an extended period.
1. Properties Available for Extended Period Might Have an Underlying Issue
A property that's been on the market for a long period may have some issue that explains the longer than average days on the market. This problem may not be with the property itself; rather, there might be an issue with the pricing or the seller's expectations.
The property might have a defect that's detected during the home inspection. If the seller refuses to fix the problem or won't budge on the price, any buyers may be backing out of the purchase.
Homes that are overpriced take longer to sell, and they may not sell at all until there's a price adjustment or changes in the market. Your real estate agent can offer guidance as to whether a property is reasonably priced.
Some sellers expect buyers to cater to their schedule (only scheduling showings when it's convenient for them), have unrealistic expectations for an offer, or are just difficult to work with. All these things make it harder to locate a suitable buyer and close on the sale of the home.
2. Some Properties on the Market a While Are Good Deals
There are some properties on the market for a long time that are simply the products of bad luck. Property deals can fall through for a number of reasons, and a lot of these reasons have little to do with the property or seller.
The buyer may have backed out of the deal due to an inability to secure a loan or for personal reasons. Many homebuyers are leery of homes that have been available for a long time. Thoroughly research the property, but if it's fairly priced and fits your needs, don't hesitate to make an offer.
3. There's a Way to Shorten the Days on Market Figure in the Listing
When a home has been available for a while, some real estate agents will pull the home's listing and relist it. This results in the days on the market figure to appear shorter than it actually is.
Experienced realtors are usually able to tell when a property is a new listing and when it's been relisted. For more information regarding properties for sale, contact a real estate agent.Share