Time on Market as a Value Risk
Why Overpricing in a Softening Market Can Reduce What a Home Is Worth
By Tommaso The Realtor
In a softening or depreciating market, excess time on market is not a waiting period. It is a value risk. When you "test the market" when values are decreasing, the market will almost always win.
Sellers often overprice at launch in the hope of capturing early upside. The more common result is the opposite. The home misses the first wave of serious buyer interest, then sits while better-priced listings take the activity.
While an overpriced home remains active, other properties enter the market at more competitive prices. Those homes are more likely to go under contract and close.
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