By Natalie Novarro, REALTOR®
Sotheby’s International Realty – Beverly Hills
Serving the Hollywood Hills • Sunset Strip • Surrounding Los Angeles Neighborhoods
You’ve found a house in Los Angeles that you really like.
The location is great. The layout works. The price seems reasonable.
But then you notice something.
It’s been on the market for 90 days. Maybe 120. Maybe even six months.
And now you’re wondering: What’s wrong with it?
It’s a reasonable question. But a home that’s been sitting on the market isn’t necessarily a home you should avoid.
In fact, some of the most interesting buying opportunities can be properties that other buyers have overlooked.
The key is understanding why the home hasn’t sold—and whether that creates an opportunity or a potential problem.
Here’s what I would investigate before making an offer.
1. Why Do Some Los Angeles Homes Sit on the Market for Months?
There are several reasons a property might remain unsold.
The most common is pricing.
A seller may have listed the home above what buyers are willing to pay. Even if the property is attractive, buyers may be comparing it with other homes that offer more value.
But pricing isn’t the only explanation.
A home may have an unusual floor plan, limited parking, deferred maintenance, difficult access, or other characteristics that narrow its buyer pool.
Sometimes the listing photos are poor, the marketing hasn’t effectively communicated the property’s strengths, or the home is difficult to show.
And sometimes there’s nothing particularly wrong with the property. It simply hasn’t found the right buyer.
The important thing is to distinguish between a home that’s overpriced and one that has a problem you may not want to inherit.
2. Is a House That’s Been on the Market for 90 Days a Red Flag?
Not automatically.
Ninety days on the market can mean very different things depending on the neighborhood, price range, property type, and current market conditions.
A competitively priced home in a highly active segment of the market may attract interest quickly.
A distinctive luxury property in the Hollywood Hills may have a much smaller pool of qualified buyers.
That doesn’t necessarily mean the second property is undesirable.
I would compare the home’s days on market with similar properties—not with every listing in Los Angeles.
For example, if comparable homes are selling in 30 days and this property has been available for 150, I would want to understand why.
But if comparable properties are routinely taking several months to sell, the listing may not be unusually stale.
Context matters.
3. Could Bad Listing Photos Actually Be an Opportunity?
Absolutely. Sometimes there’s a diamond in the rough hiding behind terrible listing photos.
Most buyers start their home search online, and if the photos are dark, poorly composed, or don’t show the property in its best light, they’ll often scroll right past it.
But here’s where I think there’s an opportunity.
A home with bad listing photos may attract fewer showings, which could mean less competition for buyers who are willing to look beyond the pictures.
I’ve walked into homes that looked terrible online but were actually much more appealing in person.
Maybe the house has great natural light that wasn’t captured in the photos. Maybe the rooms are larger than they appear. Or maybe there’s a beautiful backyard or architectural detail that the listing barely shows.
Of course, bad photos don’t automatically mean a bargain.
But when I’m searching for properties for buyers, I don’t necessarily overlook a home just because the marketing isn’t great.
Sometimes the best opportunities are the homes everyone else has already scrolled past.
4. What Do Multiple Price Reductions Tell You?
Price reductions can provide useful information about how a listing has performed.
Suppose a home was originally listed at $2.5 million.
After 60 days, the seller reduced it to $2.35 million.
Another month passed, and the price dropped to $2.2 million.
That tells us the original pricing strategy didn’t generate the desired result.
But it doesn’t necessarily tell us what the seller will accept today.
I would want to know when the most recent reduction occurred and whether it generated new interest.
A seller who reduced the price yesterday may want to see how buyers respond before considering another significant discount.
A seller whose property has remained unsold for several weeks after the latest reduction may be more willing to discuss an offer.
The listing history is useful, but it’s only part of the picture.
5. How Do I Find Out Why the House Hasn’t Sold?
This is where I would start asking questions.
Before writing an offer, I would want to understand the property’s history and the seller’s circumstances.
Some questions I might ask the listing agent include:
- Has the property received any offers?
- Has it previously been in escrow?
- If a transaction fell through, what can be shared about why?
- Have buyers raised recurring concerns?
- Have there been inspections or reports?
- Has the seller made any improvements or repairs?
- Are there known issues affecting financing or insurance?
- What is the seller’s preferred timeline?
The listing agent may not know or be able to disclose every detail about the seller’s situation.
And I wouldn’t assume an answer is complete without appropriate independent investigation.
But these conversations can help identify issues worth examining before making an offer.
6. What If the Home Was Previously in Escrow and Fell Out?
A canceled escrow deserves attention, but it doesn’t automatically mean there’s something wrong with the property.
Transactions can fall apart for many reasons.
A buyer may lose financing, experience a change in circumstances, or be unable to complete the purchase.
Other transactions may fall through because of inspection findings, appraisal concerns, insurance problems, or disagreements over repairs.
I would want to understand what happened and whether any reports or relevant information are available.
If the previous buyer discovered a significant issue, that’s something a new buyer should investigate carefully.
But if the prior transaction failed for reasons unrelated to the home’s condition, the property may still be worth pursuing.
7. Can You Negotiate More on a House That’s Been Sitting?
Sometimes.
A home that’s been on the market for an extended period may have a seller who’s more open to negotiation.
But I wouldn’t assume that every long-standing listing comes with a substantial discount.
Some sellers have considerable flexibility about timing and are willing to wait.
Others may have already reduced the price to a competitive level.
I would start with comparable sales and the property’s current condition.
Then I’d look at the listing history, competing inventory, and any information available about the seller’s priorities.
The goal isn’t simply to offer the lowest possible number. It’s to make an offer that reflects the property’s value and gives you a realistic chance of buying it.
For more on this, see my article: How Much Should I Offer Below Asking Price on a Los Angeles Home?
8. Are Homes With Poor Layouts or Unusual Features Worth Considering?
They can be, depending on your priorities.
Some properties remain on the market because they don’t appeal to the broadest group of buyers.
Maybe the primary bedroom is on a different level from the other bedrooms.
Maybe the home has a very contemporary design, an unconventional floor plan, or limited outdoor space.
Those characteristics may be dealbreakers for some buyers but perfectly acceptable to others.
If the property works for your lifestyle, you may have less competition.
However, I would also consider how those same characteristics could affect resale.
Just because something doesn’t bother you today doesn’t mean future buyers will feel the same way.
9. What About Homes That Need Repairs?
This is where I would be more cautious.
A home that’s been sitting because it needs cosmetic updates is very different from one with significant structural or systems issues.
For example, an outdated kitchen or unattractive flooring may be manageable.
Foundation concerns, drainage problems, major roof repairs, or unpermitted additions require more careful investigation.
In the Hollywood Hills, I would pay particular attention to retaining walls, slope conditions, access, and water intrusion.
If you’re considering a hillside property, my guide to buying a hillside home in Los Angeles covers many of these considerations.
A property that needs work can be an opportunity.
But you want to understand the likely costs and risks before deciding whether the price makes sense.
10. Does a Long Time on the Market Mean the Seller Is Desperate?
Not necessarily.
This is a mistake I see buyers make.
A listing that’s been available for six months doesn’t automatically mean the seller is under financial pressure or willing to accept any offer.
Some sellers need to move by a particular date.
Others would prefer to sell but aren’t under pressure.
And some have a specific price in mind and are willing to wait.
I would avoid making assumptions about a seller’s motivation based solely on days on market.
Instead, I would look for information that helps us understand their priorities and structure an offer accordingly.
11. Should I Wait for Another Price Reduction?
Possibly, but there’s a risk.
If a home is significantly overpriced and the seller hasn’t adjusted expectations, waiting may make sense.
However, if the current price is already supported by comparable sales, another buyer could recognize the same opportunity.
I’ve seen buyers focus so heavily on waiting for a lower price that they lose sight of whether the property is actually a good fit.
The better question is:
Would I be comfortable buying this home at a price supported by the market, even if the seller doesn’t reduce the asking price again?
If the answer is yes, it may be worth exploring an offer rather than waiting indefinitely.
12. How Do You Determine What a Long-Standing Listing Is Really Worth?
I would evaluate the property independently of its asking price.
That means reviewing recent comparable sales, current competition, property condition, location, and any characteristics that affect value.
In the Hollywood Hills, this can be particularly nuanced.
Views, architecture, privacy, parking, lot usability, and access can make substantial differences between properties.
I would also review the listing’s price history and how long comparable homes have taken to sell.
The objective is to determine a reasonable value range—not simply calculate a percentage below the asking price.
13. Can You Ask for Seller Credits Instead of a Lower Price?
Depending on the transaction, yes.
Sometimes a seller may be more receptive to providing a credit toward allowable closing costs than agreeing to an equivalent price reduction.
For buyers, this could help reduce the cash required at closing.
However, credits are subject to the purchase agreement, lender requirements, loan-program limits, and other transaction-specific rules.
They also don’t always have the same financial effect as a lower purchase price.
I would compare the options with your lender before deciding which structure makes more sense.
14. What Are the Biggest Risks of Buying a House That’s Been Sitting?
The biggest risk isn’t the number of days on market.
It’s failing to investigate why the home hasn’t sold.
Potential concerns include:
- Overpaying despite the long listing history
- Underestimating repair or renovation costs
- Missing financing or insurance complications
- Overlooking an undesirable location or layout
- Failing to investigate previous escrow cancellations
- Assuming the seller will accept a low offer
- Ignoring factors that could affect future resale
A long-standing listing can create an opportunity, but it shouldn’t replace proper due diligence.
15. When Would I Recommend Making an Offer?
I would consider moving forward when three things line up.
First, the property works for you.
The location, layout, condition, and overall lifestyle fit your needs.
Second, the numbers make sense.
Comparable sales and the property’s condition support the price you’re considering.
Third, you’ve identified the important questions.
You understand what still needs investigation, and your offer and contingency strategy appropriately address those concerns.
You don’t need to wait for a property to become popular before deciding it’s worth buying.
Sometimes the homes that other buyers overlook deserve the closest look.
Frequently Asked Questions
Is it bad to buy a house that’s been on the market for six months?
Not necessarily. A home may remain unsold because of pricing, limited buyer demand, unusual features, or property-specific issues. The important thing is understanding why it hasn’t sold and whether the price reflects those circumstances.
How much below asking should I offer on a house that’s been sitting?
There’s no universal percentage. A reasonable offer depends on comparable sales, current condition, listing history, competing properties, and the seller’s circumstances.
Are homes with multiple price reductions a good deal?
Sometimes, but a price reduction doesn’t automatically mean a home is undervalued. The current asking price still needs to be evaluated against comparable sales and property condition.
Why would a good house sit on the market?
Possible reasons include an overly ambitious asking price, poor listing photos, limited showings, an unusual layout, or a smaller pool of qualified buyers.
Should I be concerned if a house fell out of escrow?
You should investigate the circumstances. A canceled transaction may be unrelated to the property’s condition, but it can also signal issues that deserve professional review.
Can I negotiate closing-cost credits on a stale listing?
Possibly. Seller credits may be negotiated, subject to the seller’s agreement and applicable financing requirements.
Is it better to buy a house that’s been sitting or a newly listed home?
Neither is automatically better. A newly listed home may have more competition, while a long-standing listing may offer more negotiating room. The better choice is the property that meets your needs at a price and level of risk you’re comfortable with.
Found a Los Angeles Home That’s Been Sitting on the Market?
If you’ve been watching a property in the Hollywood Hills, Sunset Strip, Beverly Hills, or another Los Angeles neighborhood and wondering why it hasn’t sold, I’d be happy to take a closer look.
I can help you evaluate comparable sales, review the listing history, identify questions worth investigating, and develop an offer strategy based on the property—not just its asking price.
Sometimes a home that’s been overlooked by other buyers is worth a second look.
If there’s a particular property you’re considering, let’s talk before you make an offer.
Visit my Contact page or call/text 323-719-3360.
About the Author
Natalie Novarro is a real estate agent with Sotheby’s International Realty in Los Angeles, specializing in the Hollywood Hills and Sunset Strip.
With over 20 years of experience and more than $100M in career sales, she works with buyers, sellers, and investors throughout Los Angeles.
For more information or to get in touch, visit the Contact page or call/text 323-719-3360.
This article is for general informational purposes only and is not legal, financial, lending, or property-inspection advice. Buyers should independently investigate property conditions and consult appropriately qualified professionals before making purchasing decisions.