Here’s what happens if your for-sale house just sits on the market.
Does it really matter how long your house spends on the market? How does days on market affect a listing? Today I’ll break down the answers to these questions.
As Realtors, we want to get you the best bang for your buck, but we also want to get it for you in the shortest amount of time. Often, I’ll give clients an accurate valuation of their home, only for them to tell me that they want to get more for it and ask to list it higher.
The seller does have the ultimate say on price, but there are a couple of things to consider:
1. What if the home doesn’t appraise for the listing price? If it doesn’t, then you’re back to square one.
2. What if you missed your target demographic in terms of who can afford the home? By pricing your home above the market, you could be shrinking your buying pool and pushing out potentially qualified and motivated buyers.
What typically happens is your house stays on the market longer than is necessary. As your house continues to stagnate on the market, your days on market turn into weeks on market, possibly extending into months on market. Keep in mind that while your home is listed for sale, you’ll still have to maintain the property and pay taxes on it. In theory, it could cost you more to start with a high price than to price it properly in the beginning.
Homes that spend too long on the market become stigmatized. When buyers see homes like that, they tend to assume that something is wrong with them, causing them to bid on different properties instead.
It’s important to list your home at the right price. Your Realtor will tell you about the comps, or comparable homes that have sold in your area, which can be used to set a reasonable price.
If you have questions about pricing your property or you’ve been thinking about buying or selling real estate, feel free to give us a call or send an email. We’d love to help you.