How long is that house on the market
... is probably the most often asked question in real estate. Well, maybe it's second to how much (little) can I offer but actually, the two questions go hand in hand.
So, does Days On Market (DOM) really matter.
And if so, how does it matter to buyers, sellers and real estate agents.
If a home has been sitting on the market a long time, buyers seem to think one of two things; either the home is overpriced or that something must be wrong with it because no one else wanted to buy it. Sellers understand that too and either fire their real estate agent and hire a new one to list their home thinking that a fresh start with a better agent and a new MLS number will make their home now sell. And some sellers choose to keep their current real estate agent but ask them about (or the agent might suggest) withdrawing the listing and refreshing it with a new Charleston MLS number.
Basically, when you withdraw and re list the home, you are "gaming the system" and folks, I've done it myself on the listing side of a transaction but please understand that my job as a listing agent is to sell the house.
As a buyers agent, I know that the history with the true time that a house is on the market is still available on the MLS and a home may have been on the market for 3 months, 6 months or even a year even though it may appear to the public to be a fresh new listing. In my opinion, DOM combined with the history indicating any previous price reductions gives me an insight into the motivation of the seller.
Buyer beware. If you call the listing agent directly as a self represented buyer or just because you don't know any better and ask the agent how long the home has been on the market, the agent can tell you in total honesty the date the listing came on the market. I'm not sure that if a follow up question like "has it been previously listed on the market?" would be asked but if it was, the agent could probably say he/she didn't know.
Now here's a problem. Yesterday, I posted the absorption rates throughout the Charleston real estate market by community. Included in the chart is the days on market. And with almost a 16 month absorption rate, why is the average days on market only about 105 days or 3 1/2 months.
The answer has to be that homes are listed, withdrawn, re listed and refreshed until the home is sold.
Bottom line, a house that is on the market a long time does not necessarily have anything wrong with it. And it doesn't mean that you can buy it for less because the seller might not be motivated. So stop worrying about how long the house has been on the market and figure out what the real value of that home may be and how you can negotiate the best possible price.
And for anyone considering selling their home in today's Charleston real estate market, price it right unless you want your home to sit unsold for months and months. And it has been shown that a house that is priced right from the start will achieve the highest proceeds. Real days on market does matter.