Most people can't resist a bargain. Personally, I'm often more interested in the terms I can negotiate rather than buying cheaply, which means sometimes there's potential to negotiate a deal if the vendor has a fixed price in their head which nobody is offering.
Basically, in order to achieve the price they want, they may be more open to negotiating on the terms. This is particularly true if the property has been on the market for a while without selling at their price.
So let's take a look at some ways to identify properties that have gone stale in the market.
First up, let me be clear: not all of these strategies work in all markets. And what qualifies as "stale" varies from market to market. So you need to take into consideration what would be a normal amount of time for a property in your target market to sell before delving into the search for stale listings.
Which means that your first port of call is to look at stats around what's an average number of days a listing usually takes to turn over in your market.
The big listing sites usually have a "profile" available for each suburb or town. This generally includes information such as:
Now that you know the median time on market for your area, it's time to start looking for properties that have passed the marker and are getting staler by the day.
Online Real Estate Websites
Seeing you're already on one of the bigger listing sites looking for the median days on market for properties in the area, you might as well stay there and look at the listings!
The easiest way is to sort your search with the oldest listings first. Then you go to the top of the list and start working your way backwards.
Now, real estate agents are a canny bunch, and they know that if a listing is stale, the bargain hunters will come hunting, and they don't want that. So it's quite common for them to freshen up the campaign by relisting the property regularly. Which kind of messes up the search idea!
But that's okay. If you use a spreadsheet or something similar to keep track of listings that interest you, you'll soon start to spot the properties that keep getting cycled back to the top of the list again. You won't be fooled!
If you have access to a paid search tool, they often have extra search features such as "Days on Market". They're also quite clever, and ignore the shenanigans of the real estate agents relisting stale listings. So that might be an option to cut through the nonsense as well, if you're allergic to spreadsheets. And if you're really lucky, you might find this filter on a free site as well.
Real Estate Agents
Reach out to local real estate agents and ask if they have any properties that have been on the market for an extended period. They might have access to listings that are not widely advertised or have insights on properties that have struggled to sell.
Now, they might also get a bit coy if you ask a question like that, given that you're probably looking for a bargain. So keep that in mind. However they might also have listings that are getting near the end of the exclusive selling authority period, in which case the vendor may move on to another agent soon. In that situation, they may figure it's worth a shot to try and sell those stale properties to you before they lose the property to a competitor.
Multiple Agents
Following on from the previous strategy, check to see if the property has been listed by multiple agents. It's very rare for brand new listings to have multiple agents. This is often a sign that the vendor had it listed with one agent, but they didn't sell it. So the vendor figured maybe giving multiple agents a go might come up with a better result.
The logic might be a little flawed, given that in a multiple agent situation the agents don't generally try as hard to sell a property, but that can work in your favour.
Price Dropping
Another situation where tracking listings on a spreadsheet can come in handy - you'll immediately see when a property's sale price has dropped. Now, given we're looking for vendors who are very stuck on the price they want to achieve, that may not happen too often, but it's still a sign that a property has gone stale.
Taken Off the Market
If you've managed to overcome your aversion to spreadsheets, and occasionally go back and revisit properties on your list, you might find some that have been taken off the market or expired. This can happen when a property was listed for sale but didn't sell within the expected timeframe, and the vendor hasn't relisted with another agent.
By checking out what the property had been listed for, you can work out what the vendor is looking for in terms of price. You can potentially approach the vendor directly with an offer that matches what the property had been selling for (with terms that you want!) or even offer to do a joint venture with the seller in which the vendor continues to own the property and you do the development, sharing profits at the end.
Drive Around the Neighbourhood
Spend time driving or walking around neighbourhoods you're interested in. Look for properties with "For Sale" signs that have been up for an extended period. Take note of their addresses and research further.
Now, this isn't quite a "stale listing" scenario, but you can also keep an eye out for properties that are rundown and unloved. Contacting the owner might lead you to a private sale or joint venture opportunity.
Local Newspapers and Magazines
Okay, so this one is starting to die out, but some areas still advertise real estate listings in local newspapers and magazines. Check the classifieds section for properties that have been listed for a long time.
You can extend this one out to things like local listings on Facebook marketplace or sites like GumTree. In those scenarios it's often an owner selling the property, and with little other marketing support chances are it's stale. Plus you hopefully will get to talk directly to the owner.
Social Media and Online Forums
Participate in local real estate forums or social media groups. Members might share information about properties that have been on the market for a long time. You need to be a little careful with how you approach this angle, given how many people fall into the NIMBY category - Not In My Back Yard. They may not be very keen to "help" a property developer.
Remember that the reasons a property has been on the market for an extended period can vary. It might be due to pricing, condition, location, or other factors. Be sure to conduct thorough due diligence before making any decisions regarding a stale property listing.
But having said that, if your due diligence and feasibility stack up, then get your creative hat on and come up with a set of terms that suit you, while making it possible for you to offer the price the vendor wants.
Basically, in order to achieve the price they want, they may be more open to negotiating on the terms. This is particularly true if the property has been on the market for a while without selling at their price.
So let's take a look at some ways to identify properties that have gone stale in the market.
First up, let me be clear: not all of these strategies work in all markets. And what qualifies as "stale" varies from market to market. So you need to take into consideration what would be a normal amount of time for a property in your target market to sell before delving into the search for stale listings.
Which means that your first port of call is to look at stats around what's an average number of days a listing usually takes to turn over in your market.
The big listing sites usually have a "profile" available for each suburb or town. This generally includes information such as:- median prices
- number of listings
- how many have sold
- median time on market
- number of interested buyers
- rental yield
- and more
Now that you know the median time on market for your area, it's time to start looking for properties that have passed the marker and are getting staler by the day.
Online Real Estate Websites
Seeing you're already on one of the bigger listing sites looking for the median days on market for properties in the area, you might as well stay there and look at the listings!
The easiest way is to sort your search with the oldest listings first. Then you go to the top of the list and start working your way backwards.
Now, real estate agents are a canny bunch, and they know that if a listing is stale, the bargain hunters will come hunting, and they don't want that. So it's quite common for them to freshen up the campaign by relisting the property regularly. Which kind of messes up the search idea!
But that's okay. If you use a spreadsheet or something similar to keep track of listings that interest you, you'll soon start to spot the properties that keep getting cycled back to the top of the list again. You won't be fooled!
If you have access to a paid search tool, they often have extra search features such as "Days on Market". They're also quite clever, and ignore the shenanigans of the real estate agents relisting stale listings. So that might be an option to cut through the nonsense as well, if you're allergic to spreadsheets. And if you're really lucky, you might find this filter on a free site as well.
Real Estate Agents
Reach out to local real estate agents and ask if they have any properties that have been on the market for an extended period. They might have access to listings that are not widely advertised or have insights on properties that have struggled to sell.
Now, they might also get a bit coy if you ask a question like that, given that you're probably looking for a bargain. So keep that in mind. However they might also have listings that are getting near the end of the exclusive selling authority period, in which case the vendor may move on to another agent soon. In that situation, they may figure it's worth a shot to try and sell those stale properties to you before they lose the property to a competitor.
Multiple Agents
Following on from the previous strategy, check to see if the property has been listed by multiple agents. It's very rare for brand new listings to have multiple agents. This is often a sign that the vendor had it listed with one agent, but they didn't sell it. So the vendor figured maybe giving multiple agents a go might come up with a better result.
The logic might be a little flawed, given that in a multiple agent situation the agents don't generally try as hard to sell a property, but that can work in your favour.
Price Dropping
Another situation where tracking listings on a spreadsheet can come in handy - you'll immediately see when a property's sale price has dropped. Now, given we're looking for vendors who are very stuck on the price they want to achieve, that may not happen too often, but it's still a sign that a property has gone stale.
Taken Off the Market
If you've managed to overcome your aversion to spreadsheets, and occasionally go back and revisit properties on your list, you might find some that have been taken off the market or expired. This can happen when a property was listed for sale but didn't sell within the expected timeframe, and the vendor hasn't relisted with another agent.
By checking out what the property had been listed for, you can work out what the vendor is looking for in terms of price. You can potentially approach the vendor directly with an offer that matches what the property had been selling for (with terms that you want!) or even offer to do a joint venture with the seller in which the vendor continues to own the property and you do the development, sharing profits at the end.
Drive Around the Neighbourhood
Spend time driving or walking around neighbourhoods you're interested in. Look for properties with "For Sale" signs that have been up for an extended period. Take note of their addresses and research further.
Now, this isn't quite a "stale listing" scenario, but you can also keep an eye out for properties that are rundown and unloved. Contacting the owner might lead you to a private sale or joint venture opportunity.
Local Newspapers and Magazines
Okay, so this one is starting to die out, but some areas still advertise real estate listings in local newspapers and magazines. Check the classifieds section for properties that have been listed for a long time.
You can extend this one out to things like local listings on Facebook marketplace or sites like GumTree. In those scenarios it's often an owner selling the property, and with little other marketing support chances are it's stale. Plus you hopefully will get to talk directly to the owner.
Social Media and Online Forums
Participate in local real estate forums or social media groups. Members might share information about properties that have been on the market for a long time. You need to be a little careful with how you approach this angle, given how many people fall into the NIMBY category - Not In My Back Yard. They may not be very keen to "help" a property developer.
Remember that the reasons a property has been on the market for an extended period can vary. It might be due to pricing, condition, location, or other factors. Be sure to conduct thorough due diligence before making any decisions regarding a stale property listing.
But having said that, if your due diligence and feasibility stack up, then get your creative hat on and come up with a set of terms that suit you, while making it possible for you to offer the price the vendor wants.
