Staying ‘on’ market for lengthy periods without reacting to critical data and feedback is indicative of a person who may be too emotionally attached to their property.
Are you in the market or on the market? That is the question. It’s a question that I pose to my clients all the time. I may have even put you on the spot and you didn’t know it. Sometimes people think or try to give the impression that they are in, but they’re not even close.
Some properties are on, but nowhere near. The terms ‘in the market’ and ‘on the market’ may for some sound like the same expression, but in real estate both reflect the seriousness of sellers, landlords, buyers and tenants. In short, there is a big difference between the two expressions and you should know what the variances are so that you can best explain your goals and intentions.
If you’re a seller or landlord you can have a property listed for sale or lease, in other words it can be ‘on’ the market. This means that you’ve chosen a listing price and your sales representative is promoting it, trying to attract buyers and agents with clients to bring you an offer. It’s likely the listing agent has spent some of their hard earned money on your property to help prepare it along with the necessary marketing materials. Being ‘on’ the market however doesn’t mean that your asking price and expectations are realistic. It doesn’t mean you’re going to attract attention from buyers or tenants and it certainly doesn’t entitle you to a sale at that number. If it has not sold or rented within a statistically reasonable period of time it’s highly likely that your asking price is too high.
If your listing price and expectations are too high this is often made apparent by sporadic showings if any and the submission of negative feedback from the people who do tour the property. It is also evidenced by the fact that no offers have been presented, or if offers have come in, they are significantly lower than the asking price. If a price is too high and a seller or landlord continues along the same course then the property will likely remain ‘on’ the market with little to no prospect of a sale. Staying ‘on’ market for lengthy periods without reacting to critical data and feedback is indicative of a person who may be too emotionally attached to their property, someone out of touch with actual market conditions or someone who just isn’t serious about making a sale.
‘In’ the market is when a seller or landlord chooses to price their property competitively relative to others with the intention of making a deal happen as fast as possible. The mindset of being ‘in’ is representative of someone who is serious about making a sale. This person considers what’s happening with the economy, feedback from showings & realtors and views other properties as competition. A seller or landlord ‘in’ the market accepts important data and acts upon it. Being ‘in’ connotates an openness to making some adjustments when needed in order to accomplish the ultimate goal of selling or leasing. Having an ‘in’ attitude also means that the person is looking beyond the sale to the next opportunity or chapter of life. Being in means being part of the group of successful sellers and landlords who close deals within a statistically reasonable period of time.
These terms also apply to buyers and tenants. A company or individual who is a buyer or tenant with an ‘on’ attitude is generally not interested in making a commitment. In their minds there’s no pressing need or desire to move forward with a purchase or a lease. They may even wish to try and make lowball offers on many different properties just for fun to see if they can find a score, but ultimately rarely if ever make a commitment.
Conversely, a buyer or tenant with an ‘in’ attitude is genuinely interested in making a deal happen. They are comfortable making a fair deal in a timely manner and they don’t need a big score to be happy. Whether for personal interest, a business requirement or up against a timeline, an ‘in’ person is often a win person. They make a deal and move on to the next big venture.
So are you ‘in’ the market or ‘on’ the market? Which attitude will you take with you on your next real estate voyage?
Until next time.
– Mitch Gauzas