should i be worried that something is wrong with that House?

Question

I have not seen the house personally.
its been on the market for sell since July.
It a very big house(the biggest one(square feet)in that area) and the biggest yard in the area too.
it looks beautiful on the pictures..thats why i don`t unterstand why its still for sale..... beeing on the market for so long do you think something is wrong with it?
DOES anyone know after how many month on the market they will reduce the price (usually)???
thanks

Answer 1

The market has changed in a lot of areas. NO BUBBLE THOUGH. the thing to remember is real estate is a local market. That being said, these are the reasons a house usually sits on the market: price, condition. If it has been on the market since July, relatively that is NOT really a long time, everyone just forgot what a normal market was like in the frenzy of the past few years. Now if everything else comparable is selling in a matter of weeks then again refer back to the two items above. Some sellers are just testing the market, some really don't understand that the market determines the value of their home, not them, and some thought appreciation was going to skyrocket forvever instead of normalizing and so kept pulling equity out when they shouldn't have. (that is a whole other story).

There is not standard formula for determining when someone will drop their price. Sellers are motivated by one of three things generally and which is their strongest determines their pricing strategy. Time, money, or hassle. Usually all sellers have all 3 motivations, but one is always the strongest. If they are being transferred and have to sell in a limited time frame, then they will price slightly below market value, if they want (or need) as much money as possible and have all the time in the world, they may decide to price high (and end up chasing the market usually).

So this house may be completely normal in days on market, it may be overrpriced, or it may be in bad shape, or the sellers could have all the time in the world to sell. Your agent (not the seller's, get your own) should help you by determining market value, based on recent comparable sales, advise you as to market conditons and overall look out for your best interests and try to get you the best deal possible. The listing agent's job is to do all that for the seller and they do not and cannot represent your best interests.

Generally the seller pays the buyer's agent commission (the purpose of the MLS is to offer compensation) so it usually doesn't cost you anything to have your own agent. I cannot stress this enough, GET YOUR OWN AGENT who will protect you and have a fiduciary duty to you! And get one that knows what they are doing, that you are comfortable with and that you trust. Their job is to advise you and help you through the entire process so you need to like working with them.

Answer 2

I assume this is an older home?? It is very difficult to answer your question without knowing the market in your area. Is it the only house that has been on the market that long? Maybe the asking price is just too high for the neighborhood and the type of buyer that would be interested in it. There might not be a thing wrong with it other than the price, or it might be a nightmare that will require a lot of work.

Call the real estate agent who has listed the house and go to view it. Then see what you think. Take someone with you who understands about structure, foundation, wiring, plumbing, etc., if you don't understand those things. Later, talk to some of the neighbors if they seem approachable.

In our area if a house has been on the market for a month, the price is then often reduced, but your area may be different.

I hope this helps.

Answer 3

In general, the largest house and yard in a neighborhood is a little more difficult to sell and will sell at less per square foot than the rest. The reason is simple. Say the average price in a neighborhood is $250k, and you find the largest house in the area and you can get it for $350k, there are options to move to better neighborhoods. Location, location, location.

Okay, so the house is beautiful. How's the rest of the neighborhood?

And so it's been on the market since July. Maybe there's nothing wrong with it, the price, or the location. Maybe the realtor isn't marketing it well. We bought our house at a good price because it had been on the market a year and no one really knew about it.

There's no rule of thumb on how long it sits before they'll reduce the price. A week, a year, who knows. Sellers are individuals. Generally, they'll consider a lower offer before they'll outright reduce the asking price, so....

Go look at it, get information, offer YOUR price. There is no rule that says you have to offer at least 90%. Your agent will probably encourage you to offer more, but here's what you tell them:

"I'm willing to offer X today. If you don't want to present the offer, I'll offer X when I find a realtor who will present it."

You can say that more nicely, but that's the message.

Answer 4

There's no law about when someone will reduce a price. The current owners may not need to sell, but will at the price the home is listed for. They may have a mortgage and they will have listing fees and closing costs. These things add up. Plus the owners have to go somewhere and that costs money too. It may be that the owners can't afford to lower the price. So it may be on the market for a very very long time.

Answer 5

The biggest house in the subdivision is a bad investment. That may be part of why it isn't selling. Could also be overpriced.

They'll drop the price (if they can) once they've been convinced that it's needed and that their house is really worth less than they'd thought.

Getting a seller to prep and list their home correctly is the most important job a listing agent has. A Realtor can market your house, have open houses (those are really for picking up buyers) and get lots of people to see it, but if it's overpriced and under prepared, IT WON'T SELL.

Answer 6

There's no way to know unless you look into it ( and at it) personally. You didn't mention the area of the country this house is in. It could be the owners are asking too much, the banks may not be willing to finance it, there could be structural damage inside, etc. Not to mention that the real estate market has been falling since February.

Answer 7

Get public liability insurance, that's what my husband has and he is a sole trader

Answer 8

It is over priced and the houseing bubble is droping prices like a rock. See how they made the bubble.

http://www.breakingbubble.com/index.htm