A considerably long period of DOM (Days on Market) may be due to several factors.

These can include housing updates, a complex or difficult showing process, and an unbalanced market.

If your home had to stay on the market for a long time, you could have missed an excellent selling opportunity.

This article will cover some of the most common reasons a house stays on the market for a long time.

So Why Does a House Stay on the Market for a Long Time?

A home staying on the market for too long is a common dilemma many sellers face. Many sellers think they can sell their homes for absolute top dollar, but this may not be the case. Before pulling your home from the market, you need to consider the current market conditions and the reasons behind the long listing period. However, the most common reason homes remain on the market for too long is an inflated price. In this article I will discuss some issues relating to why a house stays on the market for a long time, including the following:

• Why A High DOM
• Housing updates
• A Difficult or Complex Showing Process  
• An Unbalanced Market
• Price Problems

Why A High DOM

A high DOM (Days on Market) usually results in an even higher DOM and can drastically reduce your chances of selling your house or it can at least make it where you have to reduce the price significantly to get it done.

Now, the main reason behind this is what I call the “herd mentality” and it can apply to more than just real estate, but for our purposes, I’m going to stick to how it affects DOM.

So, in its most basic sense, when people see a property that’s been on the market for a long time, they assume that a lot of other people have already looked at it and therefore there it must have too high a price or that somethings got to be wrong with it or it would have already been purchased.

I guess you could say the days on the market of a house are one way people gauge the desirability of a property.

One way people try to decrease the DOM of a house that stays on the market for a long time is to take it off the market and relist it or take it off, refurbish the house and then list it again.

This will reset the DOM and they think it could lead to a quick sale.

The issue with this strategy is that there could be significant costs incurred with the refurbishing, and if you accrue a high DOM again it could mean the same stalemate.

Also, lately, other than DOM there is a thing called CDOM (combined days on market), which tells everyone the length of time from when the property is first listed to when the property goes into its last pending status before finally being sold.

So, with CDOM it could defeat the purpose.

Although, I think experienced realtors may have a way to turn back the clock on the DOM & CDOM.

Housing updates

If A house is in need of being updated this can be another factor that can have it sitting on the market for a while.

When most people buy a house they want everything in it to be done with the newest materials & most up-to-date styles.

Especially, the kitchen and bathrooms!

Since, for the most part, the average people buying homes aren’t looking to buy a home improvement project.

Now, here’s a little tip, if you’re ever in a position where you’re going to be putting money into updating a house that you want to sell, if you want to get the biggest bang for your buck, most of the money should go into the kitchen & bathrooms.

A Difficult or Complex Showing Process

Another reason a house can stay on the market for so long is the difficulty of showing it. Some sellers make it difficult for prospective buyers to view the property or even cancel showings, which will lead to a longer selling process.

However, it’s not always their fault.

For instance, if they have a big family with a lot of young children, it’s almost impossible to keep the house in pristine condition, which is how most people want their house to appear when showing it.

As a result, some people will turn away prospective buyers because of this.

Now, I say, show it anyway.

The worst thing that will happen is they won’t make an offer, in which you’ll be no worse off than before you showed it.

Also, you never know, they might have been the people who would have given you your best offer.

Since, most people can look past a house that is only a little messy, with children’s toys & things.

Many sellers can also make it a complex process for realtors to show their homes, which will result in missed sales opportunities as well.

An Unbalanced Market

The housing industry is currently experiencing an unbalanced market. With low inventory and high demand, prices can skyrocket, which can sometimes create a housing bubble that will eventually burst.

Now, even though there are signs that precede housing bubbles, no one can predict exactly when the next one will hit.

So, one reason a house can stay on the market a while is that supply and demand are unbalanced. When the housing supply is low, and demand is high, it drives prices up.

Which, if it goes on too long, the effect will be that it can price most people out of the market.

Price Problems

Now, after telling you the other reasons that can contribute to houses staying on the market for a long time.

I’m going to tell you the number one reason houses stay on the market for days on end.

It really all boils down to one main issue, it’s overpriced.

Even with a difficult or complex showing process, an unbalanced market, or any other problems real or perceived, if you adjust the price low enough someone will buy it.

Think about it, if you saw a house in a decent area & in reasonable shape for sale for $100, would you buy it…of course, you would!

Now, I know that’s a pretty extreme example.

But I’m just demonstrating that if a house is priced low enough it won’t take long to sell it.

Another little tip, if people see that the price of a house has dropped many times, like with the high DOM, they can start to think that something must be wrong with the house as well.

So, I believe it’s far better to price your house lower than what would be the highest price the market will bear, rather than to have to go down the price-dropping road later on, which might turn people off.

Now, to Sum it Up

If your home is priced correctly, most other issues will be overlooked. However, the property's condition could also prevent some buyers from making an offer. If you have severe issues with the property, it may not sell. Also, if your home is not in the same condition & as up-to-date as the surrounding houses, you may want to market to an audience other than the usual home buyer. Finally, an unbalanced market & a difficult or complex showing process can also factor in when it comes to houses staying on the market for too long.