Real Estate Market Time: Part 1

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Real estate market time represents the length of time – measured in the number of days – a property has been exposed to the general public. Exposure may be with a real estate sign on the property, an advertisement in a real estate publication, or a listing in the area real estate Multiple Listing Service. More sophisticated approaches to marketing a property for sale could include WEB site exposure, syndication through various real estate Internet sites, networking a Property Report to local brokers and/or brokers handling similar property types, and direct mail. With the advances in technology, new modes of exposure are being created regularly.

Market time means different things to different people. Market time can also mean different things to any one person, depending on if they are selling a property, or in the market to purchase a property. For example, a real estate agent is likely to view a property quite differently if they are the listing agent marketing the property for sale than if they were representing a prospective buyer interested in purchasing the same property.

To the common buyer, the length of time a property has been on the market is often given little consideration. To the seasoned buyer, and seasoned buyer’s agent, longer marketing times are perceived as a tool for leveraging a lower selling price – a sign of impending desperation. Marketing time for the seasoned agent or buyer can be viewed as leverage when the active market time for a property noticeably exceeds the average or median market time for the specific area in which the property is located.

Generally, savvy real estate professionals representing a property will keep an eye on lengthy market times in an attempt to avoid a property becoming stigmatized; the perception a property is overpriced or simply not desired by the current market of real estate buyers. When a property is initially offered at a price exceeding market expectations, or the property is riddled with issues (i.e. debris, access problems, structural defects, GHOSTS, etc.), local agents and neighbors make note and hold in judgment that the property is a poor value. Furthermore, those who believe they are in the know about the property are typically not shy about sharing their knowledge. Consequently, when a commonly held opinion about a property does not support the offering price, the property will be ignored. When interest is expressed by a buyer not in the know, their interest is often quashed by prevailing local opinion in the early stages of investigating the listing. Stigmatization of a property can be a very expensive condition to remedy.

Real Estate Market Time Part 2