Should You Buy a Home that’s Been on the Market for a Long Time?

| Buying

Home buyers will stumble across some basic “truths” when researching the types of properties they should avoid. However, not all red flags apply 100% of the time. So where do homes that have been lingering on the market for a long time sit? Let’s take a look at when stale listings become a red flag to avoid and when they’re a hidden opportunity.

What is Considered a “Long Time” on the Market?

On average, a home takes between 14 and 30 days to sell. When a high-demand property in a desirable neighbourhood is priced right, it can sell in as little as 14 days, while the average home is closer to 30. Depending on the average days-on-market (DOM), listings beyond 45 days are usually considered stale.

Whether you’re buying, selling, or doing both at the same time, here are some posts around timing you might find interesting: 

Why Do Some Homes Sell Faster?

Highly desirable properties in charming micro neighbourhoods like “The Pocket” in East York, Wychwood in the St. Clair West area, or Seaton Village in the Annex simply sell faster. Combined with a smart pricing and marketing strategy, buyers will snatch up those houses and likely drive a bidding war, even in a challenged market.

Learn more about Toronto’s most exclusive neighbourhoods.

Common Reasons Listings Become Stale

So what are the reasons a listing might sit on the market for too long? Here are the common culprits.

Poor pricing strategy

Whether it’s an agent who is shooting too high or a homeowner refusing to listen to their agent’s advice, a poor pricing strategy is a sure-fire way to see a home sit on the market longer than it should.

High inventory

When the market is doing relatively well, but the area is saturated, the high inventory can cause less desirable or overpriced homes to sit on the market longer. The home type can also impact desirability, such as a high number of condos.

Poor marketing strategy

A poor marketing strategy that reduces visibility can keep buyers from finding the listing.

Learn about The Christine Cowern Team’s approach to luxury real estate marketing to see it done right!

Poor presentation

An appropriate price, a good neighbourhood, and a balanced market are not enough to sell a home with poor presentation. Homes that aren’t staged, professionally cleaned, decluttered, and depersonalized tend to sit on the market beyond their “best before date.” These diamonds in the rough also require buyers to “proceed with caution” and confirm the home is structurally sound.

Not listening to the agent

All of the above red flags can result from an uninspired real estate team lacking the experience or “chutzpah” to create an effective selling strategy. An experienced agent who follows all the right steps can also face roadblocks when their client refuses to listen to their advice.

What happens if you clash too much with your Realtor? Can you walk away if it’s not working out? Check out our post: How to Fire Your Realtor® to find out.

Failed inspections

A home that appears fine might also miss out on offers when it fails the inspection process. Buyers tend to withdraw their offers if the findings are risky and the seller is unwilling to reduce the price or rectify the issue. So, unless you’re willing to take a risk, you should avoid these properties.

Inspectors can only spot so many things, which leaves a lot of possibilities for hidden issues.

Slow market

Of course, there are also market influences that lead to longer days on the market. In these cases, the agent might do everything right but face challenges in a high-inventory market where buyers are sparse.

Economy/interest rates

Often behind a slow market, factors such as high interest rates and an unsettled economy can also lead to longer days on the market, even for the best listings.

There are so many factors when it comes to the timing around buying and selling. Read these posts next to learn more:

When to Snatch Up Stale Listings

A good agent will recognize pricing issues and help you put in an offer that the sellers are likely to consider. They’re also pretty good at sniffing out sellers who were not smart enough to listen to their agents and are starting to see the error of their ways. As long as the home passes the inspection, the longer it has sat on the market, the more likely it is that you can get a good deal. A high inventory or small market scenario is usually a good opportunity to find an exceptional home at a good price, especially when the home exceeds the average number of days-on-market (DOM). If your agent is savvy enough to suss out listings that have suffered due to a poor marketing strategy, the sellers might be waiting for a reasonable offer, even if it’s a little below asking. In a poor economy or when interest rates are higher, if you’re financially secure, you can absolutely take advantage of the market and get a good deal.

In other words, an amazing real estate team like us will help you identify problems and protect your interests. Get in touch today by calling or emailing us directly.