Long sales would describe homes listed for sale that are priced considerably higher than market conditions would indicate are possible to obtain. Long sales are generally created when a seller makes an error in their opinion of value and finds an agent who is willing to go along with the error. This list contains a few of the errors that help create long sales.
- Sellers wish to test the market
- Sellers need to realize a certain amount of profit
- Seller is in no hurry to sell
- Agent does not know the market
- Agent wants a listing, any listing
- Agent and seller believe that magical thinking will help sell an overpriced home
A home that is on the market as a long sale has less chance of selling than its counterpart, the short sale. Long sales will languish on the market for months where a short sale will be viewed as an opportunity to buy a home at or below market value and attract multiple buyers. Long sales tend to have no real motivating factors except the motivation of price. Short sales will typically have numerous motivating factors including the desire of the homeowner to reduce credit damage and the desire of the lender to reduce financial loss.
When given the choice between listing an unmotivated over priced home or a home with a short sale contingency, agents will find that short sales may be the better choice.
Related Florida real estate views:
Appraisal problems add to the frustration
Buying a home subject to financing
I am not going to give my home away!
- Greg Staker - Watson Realty Corp. - 407-304-0255
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