Dear Olivia,
I’ve noticed some of the same homes on the market month after month after month. What are some common reasons these homes aren’t selling more quickly?
Sincerely,
Wondering About Real Estate
This is a great question, but a complex one to answer!
There are many, many factors that might result in a home sitting on the market longer than other properties. A home might simply not show well, with outdated decor, clutter, or poor curb appeal turning buyers off. The current market conditions have something to do with it, too. For example, we’ve seen a higher days on market (DOM) in recent years than we did at the height of the pandemic.
But in terms of broad-based reasons for homes sitting on the market, there are three I see more often than anything else…
Homes Sit on the Market Because of the Wrong Price
Far and away, the top reasons why homes sit on the market is because they’re priced too high. Pricing is a really complex process that takes many factors into account. It’s not an exact science, but it isn’t a guessing game, either. When pricing a home, real estate agents rely on information about the current market, comparable sold properties, and the condition of the home as part of a comparative market analysis (CMA).
For example, if you have a three-bed, two-bath home on a half-acre lot, its value is determined in part by what similar homes have sold for. If three comps have sold for an average price of $350,000, but your home is priced at $450,000, expect it to sit on the market until a price adjustment is done!
If It Isn’t Price, It’s the Condition of the Property Holding Back a Sale
If a home sits on the market for a long time and the price isn’t the problem, there is a very good chance that the condition of the property is the culprit. Maybe there’s some deferred maintenance like rotted boards on the deck, roof damage, or HVAC systems in need of repair that turn buyers off. Or, perhaps the home hasn’t been updated in some time, and needs fresh flooring or paint.
Even smells can cause a home to linger on the market. Homes with pets and homes in which people smoke can make potential buyers leery of the work required to rid the home of odors. A home that’s dirty or cluttered can also cause it to sit on the market. Sometimes, a thorough decluttering and cleaning session can make all the difference in a home sitting on the market and selling for asking price!
The Time of Year Matters When Listing a Home for Sale
Homes usually sell faster in the spring and summer months. This is true nationwide, not just in Fremont County. The warmer weather alone gets more buyers out and about looking for a new property. But the promise of getting into a new home before summer starts or before the new school year begins in the fall also compels more people to look for homes this time of year.
Sellers who miss out on the spring and summer rush might find their home sitting on the market a little longer. Homes listed around the holidays in November and December are perfect examples of this. With colder weather and holiday gatherings, fewer people are interested in buying a home, let alone moving!
Like I said earlier, though, there are all sorts of reasons why a home might sit on the market. If you’re ready to list your home for sale, work closely with your real estate agent to get your home prepped for the market. Take their advice regarding pricing, too – a clean, inviting home that’s priced right seldom lingers on the market!
If you have more questions about real estate, don’t hesitate to reach out to me at 307-856-3999!
~Olivia