What are the usual reasons a house would stay on the market for an extended period?

Question

And, pray explain each.

'Unmotivated seller' -- okay -- but, why would somebody go to the hassle of listing their house if they were quite so unmotivated?

'Overpriced' -- don't estate agents at least try to get their clients to settle on reasonable asking prices?

Etc, etc.

Answer 1

I'll try to explain my original reasons more detailed for you.

Sellers often times are "unrealistic" with regards to what the "true value" of their home is. Envision this if you can. Picture a beautiful castle in the Swiss Alps - that is the owner's perception of their home. Picture a very nice home in suburbia - that is the Realtor's perception (and accurate) perception of the same home. Picture a shack, in the middle of suburbia - that is the lender's perception of the same home. This is a not so funny way to describe the same home that I've often seen used in real estate publications when describing property values.


So, seriously - the "unmotivated" seller will not budge - regardless of all of the educating the Realtor has done, comparables, facts, etc. with the price and they will wait until they get their price - if ever - because they are unrealistic, thus not really willing to sell unless they get what THEY think there house is worth. They don't have to sell, they are considering a downsize but aren't sure, they may move to another area, but all in all - they have nothing compelling them to sell.

The overpriced seller is similar in that they may be testing the market, again against a Realtors facts, comparables, etc. because they have "upgraded" and they feel their home is worth the extra money. With this seller, depending on their reasons for selling - they will get realistic and get priced properly, or they will take the property off the market and wait.

I will walk away from a listing if they aren't willing to understand the market. Often times, I will allow them "their" price for 2 weeks and then, in the listing agreement, they agree to reduce to my recommended price if they haven't yielded an offer.

These are all reasons pertaining to the seller.

The list of other factors is endless and only someone in that area of Dallas would know for sure with specific properties.

In general, there could be environmental issues, construction issues, litigation issues, undesireable features to the home, the community, etc.

Please protect yourself and work with a professional.


All the best to you!

Answer 2

A house stays on the Market when it it priced at a cost the market will not bear. And when there is no market for the house.
That means, maybe the house is in an economically depressed area, people have no work, so there is no money to spend, no matter how nice the house is. Maybe there is a poor job being done marketing the house by the listing agent. Hence, with no marketing, no market. lastly, the house just plain isn't worth what the seller thinks it is. Some people blindly dig their feet in the ground , saying this is what I want and thats it. Some agents, usually hungry ones, take these blasted litings because even a fluke sale means a commission. O pro will say if thats your price, then I wish you luck with another agent. I won't take your listing at anything other than fair market value. (These are few and far between).
It's not hard to establish a true price. Any agent can print you off a competitive market analysis, and you can call an appraiser and pay 325.00 or so, to find out exactly what your house is would cost to rebuild, what to insure it for, and lastly what it is worth on the current market.
Of course, if you are waiting for the right buyer, the one who sees your house exactly as you do, he is there, he may come around, he may not. Thats why it takes a year, or years sometimes.

Answer 3

To my way of thinking, there is only one reason a house won't sell, and that's because it's overpriced. The real question is what makes a house overpriced? Sometimes, a seller will purposely overprice his house because he's not in a big hurry to sell (this happens frequently when someone is building a new home and has no place to go if his house sells. If some sucker is willing to overpay, then it's worth his while to find other lodging). Also, some sellers refuse to believe what their real estate agent is trying to tell them-their houses aren't the gems that they think they are. There are also real estate agents who purposely list the house too high because they've conned the sellers into thinking that they can get that price, just so the agent can get the listing (unscrupulous, but it does happen). Then, there are some people who are just clueless about what their house is really like compared to other sellers in their neighborhood. You'd be surprised how many houses still have avocado and harvest gold appliances in them!

Answer 4

Sure, over-priced or unmotivated seller may be a couple of reasons. Not so much the unmotivated seller because they make money if they sell. Never the less, over-priced and do consider the condition of the house. Buyers tend to dig into the quick and find all sorts of repairs needed on a potiential home that they try to get taken off the price of the house. Location is a big issue too. Location will either lower the price or raise it. Neighbors or surroundings will be considered and also schools have to be taken into account for a potential buyer.

Answer 5

Definitely, if it is overpriced. If a house is priced right it will sell even it needs repairs. One would have to make sure that the house is 'up to par' with the surrounding houses in the neighborhood. Does it need too many repairs compared to the other houses. Is it staged? Does it have curb appeal? Does it offer something that similar homes don't. If not, the house will sit.

Consider it this way: If you were a buyer wouldn't you want the most for your money with the least amount of repairs or a home which has some unique quality that you appreciate as a buyer.

Answer 6

The biggest reason is an undecided market- if the market is going down or stagnating, the seller may sit around waiting for a market increase and a high bid at some point. Its just like a gambler in Vegas waiting for that high roll.


It really depends on the appreciated value that the seller has already accrued. If, like here in CA, a seller has made 2x equity value, they'll probly want to sell quickly or remove from market. If there has been little to no appreciation, the seller may have to sit on it till the bid is higher than their own buying price to turn a profit.

Answer 7

People are coming up with good answers.

Another reason would be that it doesn't stack up well to other homes on the market in the same area. It may have many less desired features. Features that people seem to be going for these days are 3-car garages, full-basements, 4-bedrooms, multiple full bathrooms, walk in closets, etc... If most of the homes on the market in a neighborhood have these features and one home lacks many of them, it will likely be on the market longer and sell at a much lower price.

Answer 8

Run down and overpriced

Too much junk so that a buyer cannot see what their stuff would look like

Crappy looking yard

Looks like it has not been cared for and is dirty

Overpriced - means you are asking too much compared to the renos that neighbors have done, or the house needs updating or repair badly. Too much customization or disrepair that needs to be neutralized.

People often say they are motivated but they are just pride-invested and not related to reality. A true motivated seller HAS TO SELL because of something like moving for a job or to avert financial ruin. So they are willing to negotiate.

Answer 9

Overpriced listing is the #1 reason homes don't or never sell.

That's why they become expired, cancelled or withdrawn...

or an Idiot agent.

although if agents lie to the clients about overlisting a homes price well then they are idiots and doing a disservice to each client.

Price, Price, Price!!!!

Answer 10

Most over pricing is not due to unrealistic expiation's of a seller but due to the fact they are upside down or have cash out the equity, and there for have none.

Truth be told they just want to walk away with nothing and can not.

Also the housing market is correction from the bubble that was made.
http://www.breakingbubble.com/index.htm