Have you ever wondered how much the term "Days on the Market"
can affect the dynamics of buying or selling a home. Well, the short
answer is a lot. I've had the pleasure of working with several sellers
this year and the one consistent question by buyers has been "How many
days has this home been on the market?"
It's definitely a
legitimate and well deserved question. One of the obvious psychological
theories is the longer a home home been on the market, the greater the
seller is willing to negotiate in terms of price reduction. But alas,
Ive found this to not always be true. Sometimes, the seller has
dropped that price to their "rock bottom" and they will hold hard and
fast to that reduced price. Sometimes, the seller doesn't have to sell.
The home could also be overpriced and the seller simply wants to
determine what their home might bring..... GIVEN THE RIGHT PRICE, that
is....... Like everything there's generally a flip side to the coin.
flip side would be for a home that has "Just Hit" the market. In this
case, you as a buyer, should keep in mind that if the home has only been
on the market 1-2 days, the seller is probably anticipating a nice offer. Why would the seller accept the first offer that comes along if its not exactly what they want? The seller has all the time in world to sell, right?
Be aware though, there are exceptions. I watched a beautiful home
continue up and up on days on the market. No fanfare, no offers, in what
was a sellers market. I found out later that the home at one point had
been under contract. The deal fell through and it was BACK on the market
starting at "day one" as a new listing. What was the problem? The
previous home inspection had reveled mold, foundation and water
mitigation issues, meaning thousand of dollars in repairs. Yes, it was
priced okay. Yes, it hadn't been on the market long but given the cost
and amount of repair work I watched buyers consistently pass it by while other sellers were receiving multiple offers.
of the best ways to figure out where the seller stands in terms of
price negotiations/days on the market is to have your agent ask. The
seller might not always disclose to you their reasons for "Days on the
Market" but the old adage is true, you never know til you ask. One of
the most important factors is to have your agent run an accurate
Comparative Market Analysis. The analysis is of benefit not just in
terms of home value but it will also give you an detailed average of "Days on
the Market" for that specific neighborhood. Another suggestion is to perhaps
conduct an inspection on the forefront PRIOR to making an offer. If the
deal doesn't work out, yes you would be out the money for the home
inspection, but it would at least give you a piece of mind in terms of
long term issues.
Author:Lanna Smith Phone: 615-477-1667 Dated: June 22nd 2014 Views: 1,821 About Lanna: ...
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