Days On Market-Does It Matter?

By
Real Estate Agent with Coldwell Banker D'Ann Harper REALTORS® TX License #0566780

Days On Market-Does It Matter?

Days on market is a statistic or data point available on our MLS. Buyers usually ask how long a property has been on the market. I know as a negotiating strategy, we maybe a bit more aggressive in a pricing offer if the property has been on the market awhile.

Days on Market-Don't OveranalyzeI encourage buyers to avoid getting hung up on the number of days a house has been on the market. The real issue should be, is this the house for you and can we structure an offer that will work for the buyer and the seller?

What seems to happen in cases where the house has been on the market a short period of time is buyers does not want to act too quickly. There maybe something else out there better than this one and if we wait awhile, the price on the house in question maybe reduced. Wrong strategy if you like this house. Better to make an offer, with a reasonable price now than to wait. If you like the house, chances are someone else will snap this one up before the price is reduced.

Now for the houses that have been on the market awhile, the buyer's concern that maybe something is wrong with the house and that's why it is still on the market. I find that in many cases houses are on the market for extended periods because the market does not agree with the owners price. The inventory of available homes is high enough that buyers, in many cases, are not making offers on houses deemed to be overpriced.

Its been my experience over the past year that most houses on the market for extended periods of time are unsold becasue the market does not agree with the owner's price. So if you like the house, make a reasonable offer, based on what other homes are selling for in the area, regardless the number of days its been on the market. Obviously the Seller's Disclosure and Inspection will be used to help you come to a final decision on the property.

Don't let the "Days On Market" be the over arching statistic used to determine if this is a good deal or not. If you like the house, make an offer.


Looking for a good Realtor® in San Antonio? Let me Google that for you.  

                                         Coldwell Banker D'Ann Harper logo
    
Wayne Johnson                                   
18756 Stone Oak Parkway                   
Suite 101                                
San Antonio, Texas 78258 

 

e-mail: wjohnson@cbharper.com
Tel:      210.483.6329
Website:www.Wayne-Johnson.com

Texas Real Estate License #0566780

Texas Law requires all real estate licensees to provide the following information about brokerage services:

http://www.trec.state.tx.us/pdf/contracts/OP-K.pdf

 

The information, opinions, suggestions, and ideas contained in this blog are mine, and are not necessarily those of Coldwell Banker, Coldwell Banker D'Ann Harper Realtors. Information contained herein is deemed reliable but should be verified before acting upon.
 

©December 2010 By Wayne Johnson All Rights Reserved *Days On Market-Does It Matter*


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Re-Blogged 6 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 12/19/2010 06:45 AM
  2. Tony Marriott 12/19/2010 07:40 AM
  3. Judi K Barrett 12/19/2010 05:37 PM
  4. Gabe Sanders 12/20/2010 09:17 AM
  5. Karen Kruschka 12/20/2010 12:33 PM
  6. Sharon Alters 12/20/2010 12:40 PM
Location:
Texas Bexar County San Antonio The Vineyards
Groups:
All Thing's Texas
Texas Real Estate
Tags:
days on market
over priced houses
reasonable offer

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Rainmaker
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Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

Very good posts, and something I try to talk to my clients about.  There is a lot to the DOM -- and it's up to us to find out what.  Was it a Pending, but buyer couldn't get financing?  Or the price, or ??  Always good to look these things up, and investigate. 

Dec 19, 2010 06:06 PM #21
Rainmaker
574,273
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Rita-Yes, Buyers have many theories regarding pricing and how if the number of days on market is high they should make a low offer and it will be accepted. Thanks for your comment.

Tom-That's the ticket. DOM, be it high or low,  and offer price are separate issues. Thanks for stopping.

Debbie-I agree, the big calculation is what are other buyers paying for similar properties in the area. Thank for you comment.

Lenn-The Buyer's agent should review the listing history and from time-to-time maybe the Seller's agent will share a bit of information that helps one figure out the motivation for selling. Thanks for your input.

 

Dec 19, 2010 06:28 PM #22
Rainmaker
574,273
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Gabe-Sometimes experience is the best teacher. Thanks.

Tony and Suzanne-Yes, I can see that as not an issue in Short Sales. Thanks.

Mike-WOW, yes over thinking on the part of Buyers and drama on the part of Seller, gets in the way of lots of things.

Barbara-Jo-Yes, we all want to connect the dots, so to speak, but sometimes the dots are truly independent of each other and to connect them is to miss the opportunity. Thanks for your input.

Lyn-That is persistence, on the part of you and the Seller.That sounds like you had some real challenges. Congratulations.

Bill-Thanks, stay warm and dry over there.

Judi-Be thankful for a stable market. As consumers I guess we all look for the thing that will turn a negotiation in our favor. But in many cases DOM is not the lever that will halp a Buyer get the best deal. Sometimes it is, but what others are paying for similar properties in the area is a better tool. Thanks for your comment.

Maureen-That is to the point. Agreed. Thanks.

Tammie-That's the best approach.

Randy-Yes, do the best you can to find reasons, and if you want it make an offer. It's a three step. process for me if they want the house:

  1. Make the offer and get acceptance
  2. Get the inspection and review results
  3. Final negotiation on repairs, then both parties accept of reject

Carla-Agree since we can examine some aspects of this via the MLS Listing History, it really helps in painting a picture for the Buyer of what has happened regarding this house. Thanks.

 

 

Dec 19, 2010 06:48 PM #23
Rainmaker
544,974
Cynthia Larsen
Safe Haven Realty - Cotati, CA
Independent Broker Serving Sonoma County, CA

Your best words (for me) are: If you like the house, make an offer. Exactly! I agree, DOM is overrated.

Dec 19, 2010 08:11 PM #24
Rainer
20,312
Melinda Ball
Coldwell Banker - Winchester, VA
Licensed Realtor in Virginia and West Virginia

100% agree, thanks for the post

Dec 19, 2010 09:01 PM #25
Rainmaker
333,171
Judy Jennings
508-209-5000 - Plymouth, MA
Sales Director

Wayne - You make some excellent points here. I agree that in many instances, there is too much emphasis placed on the DOM statistic.

Dec 19, 2010 09:59 PM #26
Rainmaker
105,433
Deborah Wilson
Cutler Real Estate - Canton, OH
Stark County OH Real Estate

I agree Buyers get hung up on DOM.

Dec 19, 2010 10:20 PM #27
Rainer
26,846
Leah Henderson
Asset Realty, Inc - Columbia, SC
Hi Wayne, That is a good point. This is a nice overview. Thanks for sharing Best, Leah
Dec 20, 2010 12:27 AM #28
Rainer
11,068
Jessica Harwick
Howard Hanna Smythe Cramer - Wadsworth, OH

I am going through this very thing today. I have sellers who have been on the mkt for a long time. They have a very unique century home and started out much higher than they are now. They feel the days on market are hurting them and are considering a bit of time off the market to reset the numbers. They understand this won't be fooling any agents. Their hope is to not appear as if something is wrong to the new buyers. However, your point that some buyers avoid new to the market homes in an effort to get a better price, is so right on! It is an interesting topic to think about, as frustrating as it is. Thanks for the post!

Dec 20, 2010 12:35 AM #29
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1,104,096
Bryan Robertson
Catarra Real Estate, Inc - Los Altos, CA
Broker, Author, Speaker

In Silicon Valley, and Los Altos specifically, a home that has been on the market for 30 days or more has something wrong - usually price.  The exception is the beginning of the high-end market at around $2.5 million.  I always talk to the agent to get a sense of how much activity they've had and if it's clear he/she has interest but not enough to really write a serious offer, then I know price is an issue.

If a home has been on the market for 60-90 days then price is a huge issue regardless of any other factor.  The location could be terrible, etc but it all comes down to price.

If I had a listing on the market for 3-4 months with no offers, I'd be very concerned.  Of course, I would have had a conversation with the seller back at the end of Week 2 indicating that we need a new price or marketing strategy.

Dec 20, 2010 12:43 AM #30
Rainmaker
1,177,018
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566

Wayne, one thing that I do notice is that the fresh, new inventory, just under 20 days, can have some awesome homes.

Dec 20, 2010 07:18 AM #31
Rainmaker
1,177,018
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566

That is a really cool photo on the side of your blog. Is that in your area? I had to come back and take a peek at it.

Dec 20, 2010 07:19 AM #32
Rainmaker
1,018,859
Michael J. Perry
RE/MAX Associates of Lancaster, PA. - Lancaster, PA
Lancaster Relo Specialist

I think it's also important as a Seller counseling tool . Do they want to duplicate the mistakes of the other sellers in their market who are languishing on the market ? 

Dec 20, 2010 09:09 AM #33
Rainmaker
1,014,173
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

Good houses, priced right don't last, so it is better to make an offer regardless of DOM. I think DOM after last price change may be a worthwhile consideration.

Dec 20, 2010 09:21 AM #34
Anonymous
Anonymous
Anonymous

I agree completely.  It's good to have an answer to this question because we get it all the time.  Good post.

Dec 20, 2010 09:26 AM #35
Rainmaker
1,706,482
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Good morning Wayne,

Great post and congrats on the feature. I agree if the house appears to be priced right chances are other buyers will feel the same and they will make an offer beating you to the punch! Homes that have been on the market past the average days on market for your area and appear to be over priced will invariably get low offers! Always better to price it right in the beginning!

Dec 20, 2010 09:26 AM #36
Rainmaker
515,397
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

Good post today, I enjoyed the read.   Yes, I too agree with what you've said in the post.  Lots of good comments as well.

Patricia/Seacoast NH & ME

Dec 20, 2010 11:18 AM #37
Rainmaker
515,397
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

Good post today, I enjoyed the read.   Yes, I too agree with what you've said in the post.  Lots of good comments as well.

Patricia/Seacoast NH & ME

Dec 20, 2010 11:18 AM #38
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Karen Kruschka
RE/MAX Real Estate Connections - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Wayne  You have explained this very professionally - buyers should base an offer on comparables in the area

Dec 20, 2010 12:27 PM #39
Rainmaker
979,453
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Wayne, this is a great post explaining the REAL reason why many homes have long Days On Market. Once they get the price where it should be, they get an offer. However, with the lon DOM, savvy buyers want to lowball...

Dec 20, 2010 12:36 PM #40
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Wayne Johnson

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