Kim Mullan Blog
Stigmatized Properties...Who's At Risk & When
November 23rd 2017
Not all property listings are created equal.
Price point, area, floor plan, presentation, traffic patterns and privacy can significantly impact the sale cycle a particular property will experience.
There isn't a simple time formula that determines whether buyers will begin to avoid a property because of lack of consumer confidence. It's a recipe - a combination of factors specific to each property.
A very high end home may have a longer sale cycle due to it's niche audience based on price point and taste. It can be more difficult to determine when a price change is necessary or when a property has lost its audience.
It's much easier to assess risk with an average priced property in a familiar sub-division. Is it having lots of showings but no offers while similar properties are selling? If that's the case a price change needs to occur quickly to retain as much of the remaining audience as possible. Resisting the need to reposition will lead to a stigma that risks selling below market value. Buyers may not be certain the property was rejected on price point alone and want compensation in the way of further price reductions for the future risk they may be taking on purchasing these listings that have grown long in the tooth.
The best way to avoid becoming a stigmatized property is to understand the realistic sales cycle for your type of property.
If properties like yours are not selling it is likely a state of the market.
If properties like yours are selling and yours isn't it is likely the state of the property and should be addressed before it becomes stigmatized and requires further compensation for lack of consumer confidence.