How Long Has That House Been on the Market?

Topping the heap as one of the most popular questions for homebuyers everywhere -- "How Long Has That House Been on the Market?" has numerous implications.

Upon hearing that a home has been on the market for a lengthy period of time, most people make one or more of the following assumptions:

• There's something wrong with the house.
• The price is too high.
• The sellers are willing to negotiate.
• The sellers don't really want to move.
  
• There's something else we don't know (about the home, the neighborhood, the sellers)
  

Typically, when a home is on the market for a significant amount of time, over and above the average time on market in a given area, that's a strong indication that the home is overpriced.  Many sellers do themselves an injustice by overpricing their home for sale at the beginning. 

There may be several reasons why sellers overprice their homes:

1. Ego -- they want to clear as much or more than their neighbor did when they sold.
2. Improper Guidance -- somebody told them they could sell the house for that much.
3. Unrealistic Expectations -- the sellers don't realize nor follow the ups and downs of the market.
4. Testing the Market -- the sellers lack real motivation to move, but will for "their price."
5. Built in Negotiating Cushion -- instead of pricing right and getting a sale, the sellers believe that they need to price the home high to leave room for negotiating down.

For realistic advice on pricing your Northern Virginia or D.C. home, CLICK HERE FOR A PRELIMINARY MARKET ANALYSIS OF YOUR HOME'S VALUE.

As a buyer seeking property either for your residence or as investment, you will most likely find that homes that have been on the market a long time rarely have anything truly wrong with them, except the price.  Properly motivated sellers will likely be much more willing to negotiate on price and other terms when there home has languished on the market for months.  You should start by researching the average amount of time that homes spend on the market in the community that you wish to buy.  For example, take a look at this article about Alexandria, Virginia: How long does it take to Sell a Home in Alexandria, Virginia?

When you look at homes that have spend an above-average amount of time on the market, you are likely to be able to find and negotiate a good deal.

Currently, the average time on market varies throughout different parts of Northern Virginia, but generally ranges from about 3 months to 5 months, depending where you look.

As of the end of January 2008, there are 117 homes within Alexandria, Arlington, and Fairfax County that have been on the market for over a full year.  Of these homes on the market for 365 days or more, 50 are priced in the million dollar plus range.  However, there are homes ranging in price from $195,000 to $14 million that have spent this much time on the market.

Perhaps you can get a great deal on one of these:

                                                                      LIST PRICE                  DAYS ON MARKET

FAIRFAX STATION HOME        5 BR  4.5 BA            $848,967                     511

MCLEAN TOWNHOUSE               3 BR  3.55 BA         $850,000                     590

ALEXANDRIA COLONIAL        5 BR   4.5 BA           $930,000                     511

MCLEAN HOME                            4 BR   4.5 BA          $1,649,000                   394

FAIRFAX HOME                         5 BR   5.555 BA      $1,798,777                   499 

GREAT FALLS ESTATE              5 BR  7.55 BA          $3,095,000                   391

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