What's Wrong with that House? It's Still on the Market after 39 days!
This is a great post by an agent/broker/lender down in Austin, TX.
Key points:
1. Don't fight and get into a bidding war with 2-3 other buyers over a house you'll end up paying too much money for!
2. Look paste the negatives and see what you can do with the money you are saving not buying that over-priced house down the street.
3. Be creative! Don't let paint or even walls prevent you from a dream home in the making. Walls can be repainted and even taken down... (or put up!).
4. Diamonds in the Rough/Deals for the making! Many of the owners of homes that are on the market for a while are just waiting for somebody to make any offer! That is when the negotiations begin. No offer = no counter-offer!
"What's wrong with that house? It's been on the market 39 days and hasn't sold yet?".
Or 45 days or 72 days or?
In the Austin, Texas real estate market, about half the homes sell within the first 2 weeks. Many of those go under contract in the first 24-48 hours. But the average days on market (DOM) of all homes metro wide is about 52 days.
So many Austin homes get multiple offers and sell quickly for full price or higher. Others gather dust on the shelf. These "high" DOM homes are often owned by sellers willing to negotiate. Those sellers watch the "model home" across the street fly off the market, while their home languishes. Sure, some are dogs. Some are just overpriced even in this heated market.
But sometimes they are just hard to show, messy, need cosmetic updates or stink from Fido's years of refusing to be housebroken. So they sit on the market, in the best of times.
I say, maybe we should have a look. Paint that orange bedroom or replace those tired formica countertops. "Knock down that wall" Mr. Grobachev, open this place up, and rip out that blue carpet. With a little extra cash, vision and time, that home could really shine. I've remodeled a lot of houses. I have a pretty good idea what paint and hardwood floors cost--or a new front door. So let's run some numbers and use some imagination!
Buyers, don't be afraid of listings with 68 DOM. You can pay a premium and battle 5 other buyers for the perfect new listing, or you can have a look at a home with a bump and a bruise that you might get at a much better price to make up for its needed investment. And--you can make it your own--to reflect your taste.
Some homes spend months on the market for a very good reason that's not easy to overcome. Frankly I don't encourage my buyer clients to waste time looking at those.
But, listing inventory is very low. Buyers should consider all the possibilities!
Jeff Harris, Broker
(512)-917-8142 direct
Jeff Harris
Realtor/ Broker/ Mortgage Banker
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