What Kind of Homes Don't Sell Over 90 days?

 


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What Kind of Homes Don't Sell Over 90 Days?


Introduction: Homes Taking Over 90 Days to Sell

What kind of homes take longer than 90 days to sell in the Silicon Valley? It does happen. Let's talk about that as well. Your bank-owned property of the week, Cupertino house of the week mountain view home of the week,k and 40-daily report timely, because here's something you need to understand.
These homes are right here. And there's more, there's a lot of homes that actually take a long time to sell. There are 54 right now that are for sale and have been on the market for over 90 days. 



Analyzing Overpriced Homes

And I can tell you that there are a hundred different reasons why, but 99 percent of the time, it's because the house is overpriced.

People get home sellers, talk to the agent, and say, my Zillow report says it's worth it. 
2.3 million. Okay. But we're going into the winter season and people are a little more conscious of price. 






Case Study: Palmia House

And this house is nice. This is in Palmia.

If you know where Palmia is, it's right down the street from me. There's no reason that this house should not be sold already, but let's take a quick look at it. The stairwell, let me open this up so you can get a better look at it.

Okay, the stairwell, that's not how the original stairwell looked. This was drywall, standard steps, and it went 90 degrees to turn on it. Then they put this funky brass and glass railing in it. Does it look modern? Sure. But not for this style of house. And that's one of the problems.

This all-white tile is also another problem. I sold this model before, and this isn't a dining room. It's actually a nook, but they opened it up to make it look more roomy.

It's far too modern looking and

Inexpensive upgrades, you look at the cabinets and it's the foil cabinets. It's all modern-looking. And for this neighborhood, it's overbuilt, right? This should not be here. I don't know why they have this here. Maybe at one time. I don't know.

And this is just one example, but here's the thing. Price sensitivity is one of the most important reasons why your house doesn't sell. There are other reasons too, Like foundation issues, nondisclosure, families fighting together or they're just not responsive. 




Case Study: Norcrest Drive House

This house is right here, with four bedrooms, one bath, and 1500 square feet.

It's been on the market for over 90 days, This one is  Norcrest 95148. Let's see where this is. Standard Shea house, and I've sold many of these homes before why is it not selling? There's a full bathroom downstairs, and a full bedroom, which could be the location.

Let's take a look. This is on Norcrest Drive. 95148. This should sell. There could be some issues with the house, like major termite damage or it's just overpriced. Maybe if they dropped it down, the original price was 92 million. It's been on the market for 105 days.

Why? 


Understanding Price Sensitivity

Because it's right at 2 million. If you did comps, I can almost guarantee you're looking at maybe one seven, one eight, and remember that one house is. For sale, it's like little league soccer. All the kids start off in position, right?

And then the ball gets kickstarted. And then the ball goes into the far right corner and all the kids run over then the ball gets kicked to the bottom left-hand corner and all the kids run over to the far bottom left corner and there's no position plate and it's oh, there's the ball.

It's the brand new shiny thing and everybody goes and looks at it. So when you look at a house and it's priced. Everybody's going to go there and put offers on it.

When you overpriced it, people will go and take a look Or even if they look at it on the internet, they might say, For this area, for this condition, for this house, it's overpriced. I'm just not going to look at it.

It's out of my budget. Not ready to go there and it's so brand new at 2 million are expecting 5 percent over so I'm not going to pay 5 percent over on this house it's unrealistic expectations set by the agent and expected by the seller The seller is expecting this house to sell in December for two million dollars when it really should sell for maybe 1.

Maybe, he's gotten lowball offers. He's not going to take that. I've seen it dozens of times where the mindset of the owner says it's worth a certain thing. The number one reason why homes don't sell is the seller's ego. They say it's worth this much, but then you look at the condition, you look at the location. If it's overpriced typically it's because of the price based on the condition and location of that house. So why don't houses sell? A lot of these houses, these people just get greedy and a lot of agents don't want to stand up to them.

Because they're afraid they're going to lose the listing or not get the listing. A lot of times what happens is the seller will go in and say, my house is worth 2 million and they're like, okay, I'll just take the listing and maybe I'll get a couple more listings out of it.

And that's called commission breath. And that's very dangerous for both the seller and the agent. I sell houses with friends and I've sold houses with friends and they're overpriced. And I tell them, I'm like, no, my house is worth this.

And then 60, 90 days go by and they're like Why aren't you selling my house? And I tell you it's because of the price. Pricing sensitivity is a huge thing. Even if you're in a 5 million market, 

The buyers will compare your house to other houses. If your house is overpriced or in bad condition or in a bad location, like a busy street, it might be backed up to Fremont Ave, where you get a lot of traffic. It might be 3 million for a three-bedroom house, 1600 square feet.

It better look brand spanking new inside, but it's not like that's a 1960s fireplace right there. This is a standard three, two layout ranch type home. And there's not much fancy upgrades to it. They painted the cabinets, these are original cabinets and maybe they put a counter on, And now you're on the market. 103 days started off at two nine, eight, still at two nine, eight. Their mindset is they're sticking to it. And by the way, when they started this back in September, maybe if they started at 2.8, it would have sold for 3 million. So that's why houses don't sell. 


Bank Owned Property of the Week

This is the bank-owned property of the week. This is in San Leandro, three bedroom, two and a half bath, 1, 577 square feet. And it looks like it's brand new out. It's been on the market for a long time 89 days. But it also has an HOA, 200 a month,

basic home on a cluster home. If you see there's one driveway and 4 or 5 other homes attached to it. My first house was a cluster home and it's okay. Let's take this to another page so you can see better what the house looks like. It's a standard home. It's newer, but even though it's a bank-owned property, there's gotta be a reason why it's not selling. Maybe it's overpriced. 





Apple Home of the Week


Your Apple home of the week. I chose Egret Drive cause it's a brand new listing with four bedrooms, three and two half baths, and 2200 square feet. Looks like the original decor. I'm just going to go straight to the picture gallery. Wow, that's all big brand new. This is a nice-looking house. It's going to sell fast.

We'll see how long has it been on the market eight days. Yeah. So it's still in the new stage. So we'll see how that sells. 



Mountain View Home of the Week

This is Mountain View home of the week and I picked it because it's one of the nicest ones. There are only five houses for sale in Mountain View right now.

This is a six-bedroom, five-and-a-half bath, 3,500-square-foot house for a mere 6,000,000. Yep, 6,000, 000, but it's brand spanking new. So everything's brand new and probably has the new car smell.

Not fond of that mustard accent color, but that's rusty Brown.

So it looks like they took a big lot. This is a 10,000 square foot lot, right? They took the lot and it's prime for putting a new house on it. This was probably an old house and they bought it for 2 million, 3 million. Then they put another million or two into it. Now that's why they're selling it.

How long has this been on the market? 49 days. Pricing is important, especially when it gets. Colder as people go out and look at houses, people are less apt to go look at houses.

I've been very fortunate. The houses that I have, we get a lot of traffic on it's because we price them correctly and I have that conversation. It just makes sense.







40-Day Market Report
Here's your 40-day on-the-market report. We have 117, which isn't a lot, but we don't have a lot of supply right now. Our supply is dwindling. We need to have about a thousand homes for sale just in San Jose. We're at 270. We're at a third of where we need to be. Same thing with Santa Clara County.

Santa Clara should have about 2000 homes for sale. We don't have enough supply. The demand is there. We just need more supply. That's why houses continue to go up in price.

Lack of supply and consistent or increased demand means pricing goes up. 
Economics 101. I remember that class. I'm Vito with Abitano. We'll see you out there.







Vito Scarnecchia
Real Estate Broker, Veteran, Dad
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