When a home sits on the market for more than 60 days, it typically suggests several important things about the property and its pricing:
1. Pricing Signal
The extended time on the market strongly indicates that the home is likely overpriced relative to its actual market value. Buyers and their agents are essentially "voting" with their absence, suggesting that the seller's price expectations are not aligned with current market conditions.
2. Potential Reasons Sellers Don't Lower Price
Sellers might resist lowering the price due to several psychological and financial reasons:
Emotional Attachment: Sellers often have an emotional connection to their home and struggle to accept that it's worth less than they believe
Original Investment: They may have invested significant money in renovations or improvements
Mortgage Considerations: If they owe more on the mortgage than the current market value, lowering the price could mean taking a financial loss
Market Misunderstanding: Some sellers misinterpret market dynamics or have unrealistic expectations based on past peak prices
Hope for the "Right" Buyer: They might believe a unique buyer will eventually see the home's full value
3. Market Implications
A home sitting unsold for over 60 days typically:
Becomes "stale" in real estate terms
Attracts less interest from potential buyers
May signal potential issues with the property beyond pricing
Can lead buyers to assume something is wrong with the home
The most rational strategy is usually to adjust the price to reflect current market conditions, as continuing to overprice will likely result in an even longer sale process and potentially a lower final selling price.
Here's a link to homes that have been on the market for over 60 days.
Comments