How long is too long for a house to be on the market? (for sale, 2015)
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How long is too long for a house to be on the market?
As some of you may know, I have been arduously looking for house over the past few months. I am absolutely concerned about resale value. One of the things I've noticed is that numerous houses, many of which I became interested in, have been on the market for WAY too long. Seriously, like 50% of the houses on the market have been on the market for at least 90 days. This scares me, honestly. In the future, if I want to sell my house, I do NOT want to wait more than 2-3 months for it to sell. So, in this thread, I ask the following:
(1) How long is considered too long for a house to be on the market? Is there a rule of thumb?
(2) Should I even concern myself with this, or is it a non issue?
As some of you may know, I have been arduously looking for house over the past few months. I am absolutely concerned about resale value. One of the things I've noticed is that numerous houses, many of which I became interested in, have been on the market for WAY too long. Seriously, like 50% of the houses on the market have been on the market for at least 90 days. This scares me, honestly. In the future, if I want to sell my house, I do NOT want to wait more than 2-3 months for it to sell. So, in this thread, I ask the following:
(1) How long is considered too long for a house to be on the market? Is there a rule of thumb?
(2) Should I even concern myself with this, or is it a non issue?
LOL. Maybe I shouldnt put this thought in your head then. People can take their home off the market thats been on for 120 days and put it back on 4 weeks later and it will only show its been on the market for a few days. LOL ooops.
1) Ask your realtor what the inventory is. Do you expect 8 months of homes for sale with little demand to sell in less than 90 days? You better have a loooow price
2) If you're looking to flip or re-sell you better find a fixxer upper, grease your elbows, and get a great deal so you can price it low and sell quick but still come out ahead.
2a) Find another location(state) or wait until 2015 if you're worried about re-selling.
3) if you think you will be at that location for less then 2 years....just rent.
LOL. Maybe I shouldnt put this thought in your head then. People can take their home off the market thats been on for 120 days and put it back on 4 weeks later and it will only show its been on the market for a few days. LOL ooops.
1) Ask your realtor what the inventory is. Do you expect 8 months of homes for sale with little demand to sell in less than 90 days? You better have a loooow price
2) If you're looking to flip or re-sell you better find a fixxer upper, grease your elbows, and get a great deal so you can price it low and sell quick but still come out ahead.
2a) Find another location(state) or wait until 2015 if you're worried about re-selling.
3) if you think you will be at that location for less then 2 years....just rent.
Yes, I knew that about houses being relisted on the market and making it look like it's a new listing. If you keep up with the market/listings, it's easy to tell which listings are re-listed after already being on the market for months on end.
Well, I asked myself, how long would I be willing to have my house for sale on the market. The answer to that is 3 months, MAX. Sorry, but if something happens (e.g., job loss, relocation, etc.) I can't be trapped in the house for months and months. That's awful.
I sold my townhouse in 12 days in 2009. It was priced right and well marketed (I took very pro photos).
At the right price, homes sell quickly. At the wrong price, they sit. Many people are unrealistic these days. After 90 days, a stigma develops and buyers will think you are in a weak spot. More than 120 days is too long IMO.
If a house sits on the market it is over-priced. That's all there is too it. Doesn't mean it's a bad house. If you can get it at a more reasonable price it still may prove to be a good investment. Sometimes houses with "special" problems can sit on the market longer-- even if they are priced right. For example, there was a townhouse in our complex in Texas that was on a steep precipice. It looked scary-- It took 93 days to sell-- When my identical unit took 17. They did get only about 2.5% less than I did. You might argue that I could have got more for my unit...
If you like a place, even if its been on the market for a while, make an offer you're comfortable with. There's no guarantees about any investments. I think in the current financial situation, find a home you love and worry about investment potential as a secondary concern.
I sold my townhouse in 12 days in 2009. It was priced right and well marketed (I took very pro photos).
At the right price, homes sell quickly. At the wrong price, they sit. Many people are unrealistic these days.
BINGO
Quote:
Originally Posted by mlassoff
If a house sits on the market it is over-priced. That's all there is too it. .....
If you like a place, even if its been on the market for a while, make an offer you're comfortable with. There's no guarantees about any investments. I think in the current financial situation, find a home you love and worry about investment potential as a secondary concern.
YUP!
My buddy has his condo on the market for ............ 540 days.(1.5yrs)... He lowered it 4 times. Prestine condition...In desireaable Rye area. He put it on the market when he bought his house Spring 2010. and listed the condo at 2007 values. .
Meanwhile...sister in-law lists her condo and sells it within 1 month... Price, Price, Price.
Well, I asked myself, how long would I be willing to have my house for sale on the market. The answer to that is 3 months, MAX. Sorry, but if something happens (e.g., job loss, relocation, etc.) I can't be trapped in the house for months and months. That's awful.
As a buyer and seller there are two big things that YOU control. Timing and price. Since you don't know when you want to sell, the only thing you will be able to control will be price.
To ensure a '90 day' sale. you must be prepared to accept a low price, maybe a lot less than you like or 'have invested' especially when you add in fees, taxes, improvements, etc.
Maybe you should either rent or find a condo/townhouse at a bargain price. Since they are more a commodity, they may be able to be sold more easily by just keep lowering the price (for example maybe 5-10% every month until you sell). Houses, especially larger, more unique ones, often take longer since they appeal to narrower markets and comparables are more complex to see and compare.
With your criteria, and the other uncontrollable variables of property, market/timing, it will be all about price....there is no magic formula.
Now to answer your questions...I agree with the comments about price usually being the issue, but I have also noticed there is a lot more inventory these days which allows buyers to be choosier so a house that might be slightly outdated will sit longer today than it would have back in 07. I don't think you can base your future selling potential on what is happening in the market today, unless you have a crystal ball, no one can say for certain where the housing market will be in 5 years.
Also, you are not ready to buy a house. Continue to rent.
I remember back in 2007 we bought our house and it had been on the market 90 days. I thought "Hey, it's been on the market awhile, huh? We can get a good deal." We did end up getting it for 20k under asking, but I look back and laugh at the idea that 90 days is a long time for something to be on the market.
I have to agree with the others, it is all about price. Many of those homes were bought at the eight of the market with little down payment so there is no equity in them. The owners are struggling to get as much of their money back as possible. Look carefully at the comparable homes that have sold in the area and you will see what the true value of the properties are. Jay
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and listed the condo at 2007 values. 
