- Priced high at first and have now lowered the price
-Seller decided to make repairs to improve property showings
- The house had a contract on it that fell through after many months
- Or the seller decided to temporarily take it off the market ( vacation or death in the family) and re listed. Some sites count those days in between as â€œon the marketâ€
400 days seems long in any market but the first question you should ask as a buyer is â€œwhat is considered a long time?â€ Every market varies from zip code to zip code. The first step is to find out the average DOM ( days on market) for your area of interest. Long and Foster provides monthly reports called Market Minute Reports.
You can get those reports and other useful home buying articles at our blog below
A thorough inspection should reveal the problems you may need to contend with. Be sure you have a healthy "repair limit" amount in your offer and a clearly stated escape clause should the repairs be excessive. One that states that your entire escrow deposit would be returned in the event of excessive problems.
There is a big difference between "cosmetic" repairs and big ticket items. Cleaning, painting, minor repairs, carpeting, planting etc. are acceptable. On the other hand, you should be careful of "big ticket" items, such as roof replacement, structural defects, HVAC, kitchen & bath upgrades etc. because they can be very costly.
Overpricing is the main reason good homes sit. Owners believe their home is the exception to the best advice of a good agent. They price it based on what they want or need to get rather than what the current market indicates its worth. Only over time will they start to reduce the price to where it may attract an offer, but often too late to maximize their value.
Location issues like next to a busy road, train tracks or an isolated area is difficult too and it takes time for the right buyer to come along.
If it's a good house, but no one can see that, the marketing may be all wrong. This could be the agent, photographer or the home owner not being willing to prepare the home or even show the home. I had a client once ask me to only allow seriously interested buyers schedule showings. I told her, they are seriously interested if the want to schedule a showing, let them all in. She had been refusing showings and that house never sold.
You are wise to consider what impact this may have on you when you decide to sell the home. Of the issues I raised, only the location is one that you can't make better decisions on. Figure out why it has taken so long and if it's an issue you can avoid, don't worry about it until you decide to sell. In the mean time, if itâ€™s a good home make an aggressive offer. Old inventory is often very anxious to get any offer and you may be in a good position to negotiate well.
Good luck to you!
Unwavering Commitment to Service - in New Jersey ;-)
Make sure your Realtor does a market analysis on it so you don't overpay.
Nowadays, most buyers are looking for houses in tip top shape, very often completely updated and upgraded. On the other hand investors (there are still some out there) are looking for a rock bottom price. This is why a lot of houses are still out there after 400 days. The asking price might be too high. Also the market status in you town has to be considered. You need an agent to represent you (from your question I don't know if you are working with an agent or contacted the listing agent). By having an agent of your own you'll able to get all the necessary information about the market in that area, the past sales of similar house, how long they were on the market, how much below the listing price they sold for, were they in the same condition, etc. It will be easier to make a decision after knowing all the facts. Your agent will help you with the terms of your offer.
You got nothing to lose. Make the offer you are comfortable with and go from there. The seller might accept it!
And don't forget HAVE A HOME INSPECTION. I hope I helped a little.
What you should be looking at is WHY it's been on the market for 400 days. Likely, it's overpriced. Perhaps there's some significant problem (mold, foundation issue) that's scared some people off. (The inspection should reveal that, and the listing agent should disclose any known problems.) Or, as you suggest, maybe it just doesn't show well. Figure out what the problems have been thus far, and whether--and to what extent--they're a concern of yours. Make sure that you're getting a good value, and that you have a good handle on what expenses you're likely to face.
Then go ahead--if it makes sense--and buy.
As for when you sell the home in the future: Past days on market don't matter. Really, they don't. Buyers will come in and they'll determine whether you're offering the home at a good price. Most will be concerned about the condition and the appearance. You say you're planning on fixing it up real nice. So buyers will walk in and they'll see a house competitively priced, in good condition, with good curb appeal and a nice, updated interior. That's what they'll care about. Not about whether a previous owner had the property on sale for 400+ days.
Hope that helps.
I like that you are looking ahead as you consider this purchase. You should size up a house for resale before buying.
If the current owner has an ugly duckling that you can make a swan, then you might be looking at a good deal. But there are more factors. Was the home overpriced to begin with and is only now a fair price? Is there something about the location that is unappealing? Does the home backup to a freeway?
Four hundred days is an eternity on the market if we're not talking about a custom home. And by the way, there are plenty of custom homes that have poor curb appeal and don't show well, but 400 days?
All of that said, your are smart to be very suspicious. In addition to the required inspection, I would pay a visit to the local planning department to see if there is any information on this neighborhood that needs to be known.
of Longmont, CO