In today's market, a prudent agent would eduate their buyers that most properties are "on the maket" for 6 months or more due to the current economic conditions and that this is NOT necesarilly an indicator of poor condition (as in the previous market). Having said that, once u hit the 1.5 to 3 year mark, it is a clear indicator that u r "chasing the market" (i.e. price is continually above true market value) which most certainly will hurt the bottom line.
Francesca Patrizio, ePro, SRES
Coldwell Banker Residential Brokerage
Equity is cash after the sale. If there is equity (an amount based on accurate appraisal valuation vs any outstanding loans), the question is how motivated are you to sell sooner vs later. If sooner, you may need to adjust your price down if no offers are being presented in the first 3 months. If later, you can be less aggressive with any price reductions, and just be patient as you feel out the market for a longer period. If you have no equity and are in a short sale scenario with the loans outstanding, then I would say anything over 9 months (without an offer is very risky...) A short sale needs to be priced aggressively to generate an offer as quickly as possible. If you cannot get an offer in the first 3 months of a short sale, reduce the price in increments to 1) establish a price history and 2) get an offer. In all scenarios, you need to have a cost-benefit analysis done based on your goals and your specific situation to determine how long you stay "unsold" in the marketplace. The analysis will also reflect how much cash reserve you have to continue paying your other expenses and loans, and should show the economic affect on you for whatever decision you make. If you provide more information., I can be more specific. Tom Hinz http://www.shortsaletosell.com