Within the real estate industry, this is known as Days on Market (DOM) and this time span can spell doom for any hope of receiving the original asking price for the property.
As they say, “time is money,” and that is nowhere more truly the case than for the home seller whose property is languishing on the market with no buyer interest to show for the effort. Within the real estate industry, this is known as Days on Market (DOM) and this time span can spell doom for any hope of receiving the original asking price for the property.
Making a good appearance is always important, and that is always true of a new property listing in a given real estate market, but if sellers place that offering at too high of a price to excite interest, that property’s reputation will soon begin to suffer in the minds of buyers who keep seeing the same advertisement for 90, 100, 110, or 120 days without enticing a bite from an interested buyer.
As a seller, you understand that presentation is everything, and that is why you put the effort in on staging a successful open house each weekend. While it is easy to understand “curb appeal” in this content, we often forget about the curb appeal we lose as our property sits on the market for week after week and month after month.
A savvy buyer pursuing the listings for any length of time will soon come to wonder why that particular house has not moved and will quickly assume that there is something deficient about the property. When finally forced to respond to this lack of buyer interest, the seller will end up having to lower their asking price by thousands or tens of thousands of dollars.
What might be passed over an overpriced offering on day one of a listing quickly builds a negative connotation in the buyer’s mind as that listing continues to languish day after day, week after week, and month after month.
Typically, rather than an inherent deficiency in the property, the reason for slow movement is usually related to listing it at a price that greatly exceeds the market value. While it’s perfectly acceptable to test the market’s limits with an incremental increase of five to ten percent of the existing average price, pushing those boundaries too far can have a boomerang effect that will quickly come back to hit the unsuspecting seller.
As such, when looking at pricing your new listing on the market, be cognizant of what the market will bear so that your property does not take on the air of an abandoned building that can’t seem to be sold at any price.
Working with a knowledgeable real estate agent who is familiar with the area is critical when it comes to finding the sweet spot on pricing for your home.
The last thing you want to do is to establish a selling price that is likely to turn away buyers, and guaranteed to keep your property in the real estate listings for month after month. A seasoned local real estate professional can help you establish the pricing parameters you need that will move your house off the DOM list quickly.
Have Questions? Ask George!
George A Tallabas III