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What, Home Seller in Michigan

how long should one keep a listing on the market before potential buyers begin to question why it has been on the market so long?

Asked by What, Michigan Tue Jan 24, 2012

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If you're asking that, then you realize that you've got a problem:
If a house has been on the market too long, 98% of the time it is because of price.
You may argue that you just haven't found the right buyer, or that your Realtor hasn't done a good enough job of marketing, or that you don't have it staged correctly, but
It's PRICE.

Good luck and may God bless
0 votes Thank Flag Link Wed Jan 25, 2012
The duration of the listing is not as important as your objectives. Be very aware, your situation, the parameters you provided your real estate professional, as will as your motivation and time requirement of your move is critical.

Add to this the attributes of your home. You may have a log home atop a snow capped mountain deep in the Sherwood Forest with a view of the ocean. This unique property will stay on the market until the 'fall in love' buyer appears. Of course, you can place your equity on the alter of convenience (or time compelled urgency) and perpetually lower the price until a shelter seeker buys your home for a bargain.

What you must know, and your agent can provide this information, is "What is the comparable market doing?"
Only when you have this data can you determine if your home is receiving proper marketing which results in the appropriate number of showings. Your agent has already shared with the the typical number of showings needed before a offer materializes.

If your home is receiving the proper level of traffic, you are still in the game. Based on the buyer profile you have, collaborate with your agent, and address the issues frequently expressed by this profile group. (This is not actual buyer feedback, but market profiling)

Do not become a victim of 'knee-jerk' responses to lower the price unless you are aware you padded the price. If your home is priced right, as the STATISTICS show, it will sell within the appropriate expectations. Just make certain you are not in a state of denial about the real value of your home. Such owners have great difficulty hearing or seeing the statistics and are prone to using 'Yah but,' quite often.

'Why has it been on the market so long?" and "What did the owner pay for the home?" share the same objective when asked by an active buyer. An experienced agent will recognize the buyers arrival to this stage of the process and will begin removing the obstacles. This is where your preparation regarding the 'buyer profile' enable the buyers agent to address these obstacles and advance the process to negotiations.

There is more to helping an owner sell their home than sticking a sign in the yard. There must be a multi-faceted strategy that no only promotes your home, but enable co-operating agents to negate common obstacles.

Best of success in selling your Michigan home,
Annette Lawrence
Broker/associate
ReMax Realtec Group
Palm Harbor, Fl
727. 420. 4041
Web Reference: http://www.MyDunedin.com
0 votes Thank Flag Link Wed Jan 25, 2012
It really depends. It depends on your market and it depends on the type and price of your property. For example, around where I am a comparatively inexpensive (perhaps $300,000) home nicely located might reasonably sell in 45 days. An expensive home (perhaps $900,000) a bit farther out might take 180 days. Where you are, your price levels are different, as are your average days on market.

I'm just making this up, but ask your Realtor what the average days on market is for your type/price property. Let's say the average is 80 days. If I were the average potential buyer and knew that 80 days was average, I'd begin to question its situation at some point past 80 days. (Remember: At 80 days, about half have sold and half haven't.) Statistically, it'd probably make sense to identify a point at which 75% or so of comparable properties have sold. More practically, increase the average DOM by 25% or so, which in our example would come out to 100 days.

Realistically, different buyers will have different approaches. They won't go through the detailed math above. But if they know, generally, that the average house takes 80 days to sell, then if you're much beyond that 80 day mark they'll probably start questioning why it's been on the market so long.

And to answer a question you didn't ask, the reasons for long days on market come down to pricing, appearance/staging, and marketing. The most likely problem is pricing. The second most likely is the home's appearance or condition. Also significant, but usually following those two, is marketing. I'm assuming you've got a home for sale, it hasn't sold yet, and you're concerned about the reaction of potential buyers. If that's the case, ask your agent to do a new CMA. Consider hiring a home stager for an initial consultation (probably a few hundred dollars but well worth it). And review with your Realtor his/her marketing program for your home.

And, in some areas of the country (including, from what I understand, Michigan), the market is just very slow. That'll be reflected in the average days on market. You can improve your chances with aggressive pricing and a good-appearing house, but it's not going to change an overall cool market into a red-hot one.

Hope that helps.
0 votes Thank Flag Link Tue Jan 24, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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I don't think it's possible to give one answer for that. It is very dependent upon the market in which you live, and how the home compares to other typical homes within that area.

You need to look at average market times for wherever you live and get guidance from your REALTOR about pricing to determine what you might expect.
0 votes Thank Flag Link Tue Jan 24, 2012
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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