What Do You Think About Houses On The Market For Months?

 We had an interesting discussion at a sales meeting today, about what people think when they see a home that has been for sale for a very long time?  Or one that has been reduced in price over and over again?  The consensus answer was that it depends, of course.  

If you are a sophisticated buyer, and you look at the property on Zillow, you can see the history of listings and sales.  People who discover price change after price change often assume that the property was very overpriced, or that there is something really wrong with it. Other homebuyers, especially those who are not as internet-dependent, may never see the history; however, those people may also forget about the house completely, unless it gets brought to their attention by way of advertising a price change.

Sometimes a tortured listing history does mean that is was overpriced.  Because the listing agent is not always known, it could be a reduction due to listing with a new firm.  Sometimes, there is something wrong with a property, although usually a real problem leads in the end to lowered price.  The point is that we don't actually know why the price kept changing, or why the property didn't sell quickly, but we all draw our own conclusions.

Sellers sometimes take properties off the market and relist them, so buyers can see them again at the new price.  That doesn't always work though, thanks to the aforementioned price history.  So what's the answer?  Don't overprice to begin with, because a quick sale is always better.  And the first few weeks are the best time to sell.  And the first offer is often the best.  Need we say more?

Not Enough to Sell

This week, we've spent some time at every office meeting, going over our list of active listings.  It looks like a list done in a poor market, in the dead of winter.  There aren't enough new listings, not enough listings in towns and neighborhoods where we are getting calls, not enough listings in certain price ranges, and way too many listings with a "story" of some kind attached to them.  The stories can range from something badly wrong with the house, a bad location, a short sale with bank approval needed and seemingly withheld for no reason, or the most popular--overpriced.  We have taken listings all over the place, as agents tend to do when listings are thin on the ground, and we've let sellers dictate prices. 

Now we are entering the traditional time for the spring market, when typical buyers look for homes on which they can go into contract in the spring, and move into in the summer.  We simply don't have the inventory to show all the buyers stacked up (waiting for the snow to stop) what they want to see.  Some sellers are paralyzed by weather, and this is somewhere we can all empathize. This is particularly true of older owners, who may be fearful of trying to clear their walkways and driveways for showings.  It also tends to be true of owners who are out of town, as it can be harder, and more expensive, for them to keep pathways clear.  In some cases, people may feel that their houses won't show as well with muddy floors, or ice dams (true).  It may be hard to get necessary repairs made in cold and snowy weather. 

All of this needs to be weighed against the need to give buyers what they want, when they want it.  Suppose you were selling Christmas candy, but thought that your product would look or taste more attractive in January?  Or you grew flowers for Valentine's Day, but got them ready in March?  It behooves sellers to get their homes prepared for sale right away, and to anticipate that all kinds of issues can slow that process down.  It's not so easy to call a repair or landscaping service on the first nice day, and go right to the top of the list.  Even if you have to go back and do some cleanup work in the springtime, it's still better to get the bulk of the work done now.  Also, it's important to remember that your chances of selling are greater when the supply of available properties is smaller. We have more than forty relocation buyers from other places, just waiting for homes they can view. Act now!  Get your homes ready, and get a jump on the spring market!  Buyers are waiting!

Spring Inventory

I ran our Wallingford Regional office meeting this morning. We went through the list of every listing we have in that office, and, as usual these days, we thought almost 90% of them were not going to sell at their current price. Sometimes it's not because of what we would consider inherent overpricing, but rather that something about the layout, the condition, the price range, or the location is causing it not to sell; in the end, though, often the only way to fix the problem is by--you guessed it--lowering the price.

At the same meeting, however, we discussed properties that went quickly and with multiple offers. We therefore concluded that, since much of our inventory was going to sit for the foreseeable future, we were short on listings for the spring market. We need more of the homes that people want to buy, in neighborhoods where they want to live.

Before deciding what to do as a seller, then, you need to consider this bifurcated market, and figure out where your home will fall. If you live in an area where employment is stable and newcomers are entering, this is a great time to list. And do it quickly, before the rush begins. There's always something to fix, or clean, or de-clutter, and you don't want to miss the spring market.