Why Some Houses Sit On The Market

Why Some Houses Sit On The Market

Have you seen a house sitting on the market and wondered why it hasn’t sold? Even when most houses are selling quickly, some remain on the market. When a house doesn’t sell, it’s usually because it’s priced higher than the market will bear. Here are some reasons why sellers overprice their homes and options you have if you want to buy one of them.

Sellers With Unreasonable Expectations

Some sellers who overprice their homes have data on comparable sales but don’t accept the data as a good guide when it comes to their home. They may be overly optimistic about the value buyers place on small improvements they’ve made. Or they may believe that minor differences between their home and some of the comparable sales have a larger effect on value than is really the case.

Selling Soon After Purchasing

Homeowners who unexpectedly need to sell within a year or two after buying may also be tempted to overprice. In our area, when someone sells soon after buying, any rise in prices since their purchase isn’t likely to make up for the costs incurred in buying and selling, and those sellers tend to lose money. The impulse to overprice in this situation can be strong, with some homes remaining on the market for an extended period before prices are reduced and the homes are sold.

Unmotivated Sellers

Some homeowners decide to list their home intending to sell only if they receive a high offer. These are some of the least motivated sellers, and many price their homes too high. These homes tend to stay on the market and often do not sell.

What Can Buyers Do?

If you’ve seen a home you want to buy but have determined it is overpriced, one option is to wait and see whether the price comes down. When sellers reduce their price, it lessens the gulf between the asking price and a realistic selling price and increases the chance you can negotiate a price acceptable to you. This may be a good strategy if you aren’t under pressure to buy a home quickly.

Another option is to make an offer without waiting, even though the asking price may be far above what you would pay. If you choose this option, bear in mind that the chances may be low that the sellers will come down to a price acceptable to you when the price gap is large. Unless it is the home of your dreams, you may want to avoid the frustration of dealing with unrealistic sellers, continuing your search instead and making an offer on a more competitively priced home.

Read more of Annette’s real estate articles for the latest real estate advice. What real estate topics would you like to see covered? Send your ideas to annette@preferredhomes.com

If you’re planning to buy or sell a home, contact Annette Nelson at (610) 247-7892 or annette@preferredhomes.com

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