How long will a house stay on the market before the price is dropped?

Asked by NM, Moore, SC Sat Jun 11, 2011

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Shanna Rogers, Agent, Murrieta, CA
Sat Jun 11, 2011
BEST ANSWER
Hi NM,

That would depend on the seller's motivation for selling and if the property is priced right in the first place. To find out if the property is priced correctly, have your Realtor do a Comparative Market Analysis using Sold properties within a 1 mile radius (the closer, the better) of the property that have sold within the last 3 months. If the house is priced right, the seller may never lower the price and just leave it on the market as is or pull it off the market altogether. If the seller has to sell (i.e. work transfer, preforeclosure, etc.), they may lower the price. If they are facing foreclosure, they will lower the price sooner rather than later. However, if it is a Short Sale, you need to keep in mind the lender/invester who has to approved the Short Sale is going to order a BPO (similare to a Comparative Market Analysis) to find the market value of the property. If the property is pricing too much below market value (per the BPO), and you make an offer based on the list price, the lender/investor will most likely counteroffer your offer to bring the price up to market value.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
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Michael Emery, , Minneapolis, MN
Sat Jun 11, 2011
I've seen houses where the owners never dropped the price. They simply pulled it off the market.

It would depend on the motivation and ability of the sellers to lower the price. If they want to move, have to move and/or are not underwater on their mortgage, they would be more likely to lower the price.

If it's a bank owned home, then eventually the price will be lowered until the home is either sold or there is an offer. But there is no set schedule for price reductions.
0 votes
Sally Grenier, Agent, Boulder, CO
Sat Jun 11, 2011
Who knows? There is no clear cut answer to this question. There are so many factors involved. A lot depends on the seller's motivation and how the listing agent is dealing with that seller. Some agents say up front "If house doesn't sell in X weeks, then we should drop the price by XX." Sometimes the seller refuses to drop their price.

Why do you ask? If you're interested in a house and waiting for the price to drop, then you could wait a long time...or it could get bought up.

Make sure you have a good Realtor working for you as a buyer's agent who will be able to show you everything that's in your price range now.
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