Somewhat Confusing

 

 

Every week I have a number of clients that anxiously await the arrival of new listings on the market. That’s especially true so far in 2012 with the inventory being so amazingly low. Folks flock to open houses on new listings and multiple offer feeding frenzies occur quite frequently now a days. Sometimes places are in fantastic shape and sometimes they aren’t yet most of these new offerings sell quickly, and lately over the asking price. Yet, there’s still those homes that just sit there…and some sit there some more! What about those places? Why don’t they sell and are there opportunities for buyers there?

The market is so very focused on the first 2 weeks of a listing. If a seller is going to get multiple offers is almost a certainty that it’s going to happen in the first 10 to 14 days of a listing. Buyers rush out to see the new listings and if they aren’t struck by the place immediately they move on to something else. When I look at the MLS I see some homes that are just sitting there, and it seems like they’re never going to sell and I can’t help but winder why? Often the answer to that comes quickly…the price is too high (often WAY too high), the project it’s in is a disaster, it’s a short sale and buyers have backed out because the bank can’t get it’s act together and approve (or even look at the file) the loan. Sometimes the place has a difficult structural problem or a significant location challenge and sometimes the home just shows incredibly poorly.

In Foster City right now, there are 10 homes out of the 21 total listings in both single family and condo/townhouses that have been on the market for more that 21 days. 3 of them have been on for over 175 days. Most of them, to me, have understandable explanations. Still, it’s an interesting thing that folks will offer significant dollars over the asking price but not offer under asking on some of these places. Of course, it would certainly be a concern to me that my investment couldn’t sell in a market like this. The big question would be…why isn’t it selling and could I resolve the issue that keeps it from selling and improve my prospects for appreciation going forward. In many of these cases the answer is no or tentatively maybe. That doesn’t really encourage folks does it?

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