In Red-Hot Real Estate Markets, Why Do Certain Homes Just Not Sell?
In competitive real estate markets, properties often sell rapidly, often for above the asking price. Thus, when a home lingers unsold for an extended period, it raises eyebrows and questions about its desirability.
Consider a case from a sought-after city, where a three-bedroom house listed for $370,000 stood unsold for 144 days, noticeably below the median listing price of $425,000 for the area. This scenario prompts investigation into the potential reasons behind its extended stay on the market.
The property, as explained by listing agent Zyel Silva, encountered a series of unfortunate events rather than issues with the house itself. Initially listed at $340,000 and quickly going under contract above asking price, the sale fell through when the buyer unexpectedly passed away. Subsequently, another offer fell apart due to the buyer becoming a victim of financial fraud. Despite these setbacks and raising the price to $370,000, the house finally seemed to find a buyer, illustrating that homes with extended market times might not necessarily reflect on their quality or value.
[INSERT_image]
Stale listings can offer potential buyers a unique opportunity. Realtor.com data analyst Hannah Jones and Silva both suggest that prolonged market listings might present a chance for buyers to negotiate deals below market rate as sellers become more motivated to sell. It’s a scenario that challenges the common belief that a lengthy listing period is a red flag.
The reasons a home might not sell quickly often revolve around its price or condition. However, other factors like liens or unpermitted renovations can also deter buyers. For example, a Brooklyn home struggled to find a buyer for eight years due to over $100,000 in building violations from unpermitted basement renovations, drastically reducing its selling price compared to its initial $2 million listing.
Even without legal or structural issues, an outdated design or poor presentation can hinder a sale. Cara Ameer, a real estate agent, shares her experience with a property that took six years to sell because its formal, dated layout deterred contemporary buyers. Similarly, a cluttered Miami Beach condo languished on the market until staging and decluttering transformed it into a sought-after property.
For those looking to buy, a stale listing may offer negotiating leverage and a less pressured purchasing process. Cedric Stewart, a real estate agent, encourages buyers to consider these properties as opportunities for a mutually beneficial negotiation rather than a competition driven by overbidding.
In conclusion, while long-standing listings require due diligence and a keen eye for potential issues, they can represent hidden gems in the real estate market. Buyers willing to explore these options might find themselves in a favorable position to negotiate a deal that meets their needs and budget, proving that sometimes patience and persistence can pay off.
It’s essential for potential buyers to perform thorough inspections and assessments to ensure that a property’s extended market presence is not due to serious, unaddressed problems. Through diligent research and negotiation, buyers may uncover valuable opportunities in homes that have been overlooked by others, potentially securing their dream home at a more advantageous price.
