BreakThru Realty

What Should You Offer on a House That Has Been on the Market 90 Days?

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

The Short Answer

Offer what the closed sales of comparable homes support, not a formula off the asking price, and let the ninety days inform your terms more than your number. A long market time usually means the home was priced above the sales, has an issue buyers found, or both, so a well-supported offer below asking with clean terms is reasonable; a lowball with no basis just gets ignored. Read the price history, ask why it has not sold, and decide your top figure before you write anything.

What Ninety Days Tells You

Compare it with the average days to go under contract for that kind of home in that city, which the market reports on this site show. If the typical home sells in a month, a home at ninety days has been passed over by several rounds of buyers, and the seller knows it. If homes in that segment routinely take three months, ninety days is unremarkable and the seller will not feel pressure. The price history completes the picture: cuts show a seller chasing the market; none shows a seller holding out.

Find Out Why It Has Not Sold

Your agent asks the listing agent and reads the feedback: an overprice, a condition or insurance issue, a difficult association, a tenant, poor photos, or a seller who is not really motivated. Each points to a different offer. An overprice is answered with the comparable sales; a roof or insurance problem with a price that reflects the repair or a credit; a tenant with timing; a motivated seller with speed and certainty.

Start From the Sales, Not the Asking Price

The asking price is the seller's opinion; the closed sales of similar homes in the last few months are the market's. Your agent pulls them, adjusts for size, condition, lot and water or view, and gives you a range. A home that has sat is often asking above the top of that range. Your offer belongs inside the range, towards the lower end if the home needs work or the seller has shown flexibility, with the sales attached so the seller's agent can see the basis.

Terms Are Part of the Price

A seller who has waited ninety days wants certainty. A short inspection period, a solid pre-approval or proof of funds, a flexible closing date and a reasonable deposit make an offer below asking easier to accept than a higher offer with long contingencies. If the home has a known issue, offering to take it as-is with the price adjusted removes a negotiation the seller fears. Consult a mortgage lender about your pre-approval before you write the offer.

Decide Your Walk-Away First

Set the most you will pay from the sales before the negotiation starts, and expect a counter. A seller who has cut once will usually counter rather than reject; a seller who has not cut may hold. If the counter is above your number, the days on market work for you: the home will likely still be there, and the next cut often comes after a failed negotiation.

The Appraisal and the Inspection

If you finance, the appraisal will test the price against the same sales you used, so an offer grounded in them is unlikely to fall short. The inspection then tells you whether the reason the home sat is one you can live with. Both are moments to renegotiate or walk away with your deposit, within the dates the contract sets.

Talk It Through With a Broker

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What Should You Offer on a House That Has Been on the Market 90 Days?: Questions

What should I offer on a house that has been on the market 90 days?
Offer what the closed sales of comparable homes support, not a formula off the asking price, and let the ninety days inform your terms more than your number. A long market time usually means the home was priced above the sales, has an issue buyers found, or both, so a well-supported offer below asking with clean terms is reasonable; a lowball with no basis just gets ignored. Read the price history, ask why it has not sold, and decide your top figure before you write anything.
How much below asking should I offer on a stale listing?
As much as the comparable sales justify, with the sales attached. There is no standard percentage; a home priced right that sat for other reasons may deserve close to asking, and an overpriced one well below.
Will a low offer insult the seller?
A low offer with no basis is ignored. An offer supported by the closed sales, with clean terms, is a negotiation, and sellers who have waited usually counter.
Can I ask the seller to make repairs?
Yes, through the inspection period or by asking for a credit at closing. On a home that has sat, a price that reflects the work and an as-is purchase often wins over a repair list.

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