In Manchester, the UK's hottest real estate market, for example, homes here usually sell within 14 days of being listed. So if a property remains unsold after 144 days on the market, there's clearly a problem, right?

Five months ago, we were looking at a 1,400 square foot (about 130 square meters) house with three bedrooms and one bathroom on Central Avenue. At the time, we wondered what was wrong with the house. After all, the house was listed well below the $425,000 median listing price in Manchester.

A local realtor could have answered that question, provided guidance, and scheduled a showing. So why has this house sat unused for so long?

According to Ziel Silva, a realtor with Chinatti Realty, there is nothing wrong with the house. To be more precise, the property was just “bad luck”.

realtor.com

The house was first listed for $340,000 in January, and went under contract for more than the asking price after only 11 days on the market. Closing was scheduled for Easter weekend. Unfortunately, however, the buyer passed away, causing the deal to fall through.

On the second listing, the house found a second buyer in only four days, offering more than the first. Everything seemed to be going smoothly, but at the last minute, the buyer pulled out of the deal due to financial fraud.

After the second deal fell through, Silva listed the house again and raised the price to $370,000 dollars. This time, however, the house went unnoticed over time and the listing extended into triple digits. Silva believes that people may have mistakenly thought there was something seriously wrong with the house. Of course, he also acknowledged that the higher price may have affected the speed of the sale.

However, in June of this year, the house attracted a third buyer who went under contract. If this transaction goes through, it shows that long unsold listings are not necessarily bad deals. Instead, it could be an opportunity to snag a home at a good price in a hot market as other buyers are wary.

Silva says, “When a home has been on the market for a while, sellers are usually more inclined to accept offers slightly below market price.”

Hannah Jones, a data analyst at Realtor.com, chimed in, “Buyers aren't necessarily turned off by a home that's been on the market for a long time.” She added that these homes may be deals hidden in plain sight.

Jones notes, “If a seller is in a hurry to sell, they may be flexible on price or terms, so staying on the market for a long time may work in a buyer's favor.”

realtor.com

The most common reasons for listings to stagnate are the condition of the home or the price, or both.

“Homes can take longer than expected to sell for a variety of reasons, but most of the reasons come down to price versus desirability,” says Jones. “A reasonably priced, move-in ready home may sell quickly, while a home in need of repair may hang around longer.”

Liens on properties may also deter potential homebuyers. In Brooklyn, for example, a single-family home in a desirable neighborhood languished on the market for eight years, going through several real estate agents before a buyer was found. The main obstacle was that the home did not have the proper permits for its basement finish, resulting in construction violations totaling more than $100,000 dollars. Eventually, a determined buyer emerged, found a bank willing to finance the deal, and the house sold for $1.1 million, down from its original 2016 price of $2 million.

Additionally, even if a house is in good structural condition, outdated designs, poor staging and substandard photos can keep certain homes from getting the attention they deserve. For example, a Miami Beach condominium sat empty on the market for three years until the tenant moved out and the house sold quickly.

Cedric Stewart, a realtor with Entourage RD at Keller Williams Realty in Washington, D.C., advises homebuyers who want to find a deal to focus on homes that have been listed for a long time. He says, “Buyers should target homes that have been listed for sale for some time, especially in a popular market.” This provides the best opportunity for a traditional deal, where both parties can negotiate what they need rather than engage in a bidding war.

However, Jones emphasizes that homebuyers should always have a home inspection to make sure there are no serious issues with the house.

Jones says: “Buyers should ensure due diligence and make sure that a given home is the right choice for them, no matter how long it has been on the market.”