Buyers often assume that if an apartment has been sitting on the market for months, something must be wrong with it. In reality, while a “stale” listing can be a red flag, that is not always the case. Depending on the property and its price point, even a stale listing may represent a great deal, especially to buyers ready to use the listing’s history to their advantage.
In this article:
What is a stale listing?
There is no single definition of a stale listing. Indeed, listings are only ever considered stale if they linger on the market substantially longer than the current average. But depending on the time of year and, in New York City, the borough, even the average days listings remain on the market can vary significantly. In other words, a listing doesn’t become stale due to a single factor, but only in comparison to the length of time similar units (e.g., units in the same building or neighborhood listed around the same time) are taking to close at any given moment.205 West 19th Street, #11 (Compass)
Why some properties take longer to sell than others
There are many reasons a property may remain on the market longer than average, and surprisingly few of these reasons are due to serious flaws with the property itself. The most common culprit is pricing. A property priced just 5% over market rate may miss its potential audience. By contrast, a property priced just under market rate may generate enough interest to create a bidding war.Timing is another factor. For example, listings that appear in late August, a peak time for buying and selling, almost always linger for less time than listings that hit the market between November and February, historically slow months for real estate transactions. But these aren’t the only reasons some properties take longer than average to sell.
Presentation is another key factor. Poor staging and even poor-quality photos also work against listings, often more than sellers realize. Moreover, esoteric homes—let’s say, a home curated to reflect an owner’s strange or niche aesthetic—may also linger on the market longer than average. (Jimmy Fallon's former Gramercy penthouse and a colorful Upper East Side apartment, both of which lingered on the market for months before finding buyers, come immediately to mind.)
Limited access for in-person viewings can also be a factor. While more buyers make offers sight unseen than before the pandemic, buyers, especially in the resale market, generally still want access to the property before making an offer.
Finally, some listings linger due to the building's financing eligibility. For example, if a building has been deemed temporarily unsafe due to an overdue façade repair, lenders may not approve financing on units in the building. With fewer buyers able to make offers, these listings, which may otherwise be in satisfactory condition, tend to linger on the market longer.
The impact of market conditions
Ultimately, the length of time units remain on the market is dictated by the market. When inventory is low, and conditions favor buyers (e.g., favorable mortgage rates combined with attractive prices), properties—even those not in ideal condition—tend to sell quickly. Under market conditions that favor don't favor buyers (e.g., higher mortgage rates combined with higher prices), even the best properties may take several months to sell. Again, this is why stale listings are not defined by the number of days they are on the market, but only in comparison to current averages for similar properties.Why a stale listing may be your best bet
In contrast to bidding on a property with plenty of potential buyers, in the case of sale listings, you likely won’t feel pressured to put in a bid without first thoroughly assessing the property and the building. That said, if you are eager to close quickly, sellers who have been waiting months to close may also be more willing to forgo some contingencies to reach a deal sooner. The key advantage for buyers bidding on stale listings, however, is the amplified power to negotiate. From a greater chance of edging down the price to the opportunity to force contingencies related to upgrading the condition of the property, in the case of stale listing, the ball is nearly always in the buyer’s court.Questions to consider when looking at stale listings in the current market
While stale listings can be great deals, it is still important to ask several key questions. First, how long has the listing been on the market? A listing on the market for 120 days (just over the current average) is not the same as one that has been listed for 400 days. Second, if the property is lingering due to its condition, ask yourself if you’re prepared to buy a fixer-upper, and if so, can you afford to buy now and move in post-renovation? Finally, if the property is ineligible for financing, you’ll need to ensure you can afford a cash-only deal and, most importantly, that you’re willing to risk buying in a building that is currently not approved for lending.
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