Market Time and Price Reductions
“How long has it been on the market”? This is a question many buyers ask. The thought behind it is often one of two things. Either there’s something wrong with the home or the price is too high. Both of these notions may need clarification. Let me deal with the first thought.
Consumers need to know that under the closest scrutiny one could argue that there is something “wrong” with every home. The real question here is:- does the price reflect what is being offered? In this case what is “wrong” with a home may be exactly what makes it right for some one who appreciates the opportunity and the reflected price.
Regarding the thought of overpricing, it must be considered that where a home is extremely unique, a long marketing time may be necessary in order to obtain market value while pursuing a buyer with the same unique interest. On the contrary, with atypical homes, a long period of time on the market may point toward inferior marketing but mostly toward an overpriced listing for that market regardless of what is “right or wrong” with the home. However, sometimes when homes are reduced and buyers ask “how long has it been listed” the proper response is “at that price only…weeks”. By illustration and a bit of exaggeration to make the point, suppose a home is on the market for 2 years at $300,000 and the seller reduces it to $250,000. Then, while the buyer is asking “how long has it been listed”, there are 5 offers being presented, followed by the hollow apology “Sorry it’s sold”.
It is obvious then that both notions for time on the market may be incorrect. While you can always make an offer, it’s always best to ask yourself “does the price reflect what is being offered” to avoid disappointment.