The shifting real estate landscape in the Greater Colorado Springs metro area means the old rules of rapid-fire sales don’t always apply. Inventory is increasing, and the market is cooling toward a more balanced state. Therefore, seeing a house with a high Days on Market (DOM) is becoming more common. This often causes uncertainty for buyers, who wonder if a long-listed home is hiding a secret flaw or if it’s a golden opportunity. In this blog post, Colorado Springs real estate expert Barb Schlinker discusses if it is a red flag if a house has been on the market for a long time.
A long Days on Market (DOM) in Colorado Springs is a signal for investigation, not an automatic red flag or dealbreaker. In fact, the current market average trends between 52–74 days, but anything over 90 days certainly requires closer inspection. You must look closely at pricing history, property condition, and, critically, the property’s insurance cost due to localized wildfire risk. For a savvy buyer, a high DOM often indicates a highly motivated seller and, therefore, a prime negotiation opportunity.
Key Takeaways
- DOM is Contextual: A 90-day DOM might be normal in a luxury area like Broadmoor. However, it’s a definite red flag in a high-demand area like Stetson Hills.
- Pricing is the Top Cause: Most long DOM issues stem from initial overpricing. These often require a 7–12% price reduction from the original list price.
- Check Local Regulatory Issues: Buyer deals frequently fail over unpermitted work or high insurance quotes. This happens due to specific Pikes Peak Regional Building Department (PPRBD) or wildfire risks.
- It’s a Buyer’s Advantage: A long-listed home gives you significant leverage. You can negotiate price, concessions (like covering closing costs), or specific repairs.
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Defining “Long Time” in the Pikes Peak Region
What constitutes a “long time” on the market is not a fixed number; it is entirely context-dependent. The overall average for single-family homes in the Colorado Springs metro is currently between 52 and 74 days, but this is only a median.
A long DOM signals that the initial listing strategy failed to attract a buyer, or a previous contract fell through. This failure, however, is almost always an opportunity for a second buyer.
Why Your Neighborhood Matters More Than the City Average
In a geographically and economically diverse area like Colorado Springs, the average DOM can vary wildly by neighborhood. Generally, a high DOM is less concerning in high-priced markets than in competitive entry-level markets.
- Higher-Priced Areas (e.g., Broadmoor): The median listing price here is $799,900. The buyer pool is smaller, so a DOM over 75 days may be expected.
- High-Volume/New Construction Areas (e.g., Wolf Ranch): These areas usually move faster. Therefore, a DOM of over 60 days here strongly signals that the house in Colorado Springs is overpriced or has a condition issue.
If you suspect the home is priced incorrectly, a professional comparative market analysis (CMA) will tell you exactly how can you tell if a house in Colorado Springs is overpriced?.
DOM > 90 Days: Turning a Colorado Springs Red Flag into a Buyer’s Advantage
| Primary Cause (The “Red Flag”) | Blog Post Insight | Buyer’s Action (The Opportunity) |
|---|---|---|
| Initial Overpricing | The #1 reason homes linger. The seller has unrealistic expectations about the market value. | Negotiate an aggressive price reduction, typically **7–12%** off the original list price. |
| Local Regulatory Issues | Failed deals due to unpermitted work (PPRBD) or unaffordable **wildfire insurance** premiums. | Verify PPRBD permits and **get a specific insurance quote** *before* submitting an offer. |
| Property Condition | Previous buyers walked due to issues like **expansive soils** or deferred maintenance cited during inspection. | Request seller concessions (closing costs) or a price reduction based on **citable local repair estimates**. |
The Primary Culprits: Price, Condition, and Strategy
Real estate experts agree that long-listed homes fall into three main categories: pricing failure, condition failure, or specific local regulatory issues.
Overpricing: The Seller’s Emotional Anchor
Overpricing remains the number one reason a property fails to sell quickly. Sellers who listed aggressively during a hotter market often struggle to accept the need for current adjustments.
- Price Reduction: Most long-listed homes in the area require an average of a 7–12% price reduction from the original list price to generate a quick sale.
- Motivation: The longer the DOM is, the higher the seller’s motivation becomes. A home on the market for 100+ days usually means the seller will negotiate significantly.
Property Condition and Deferred Maintenance
Beyond price, repeated failed inspections can significantly drive up the DOM. Therefore, buyers must actively look for Colorado Springs-specific issues:
- Expansive Soils: This is common in the region. It can cause foundation issues. A high DOM could mean previous buyers walked after soils testing estimates came in ($1,200–$2,500 for testing alone).
- Radon and Asbestos: Radon is a known issue in Colorado. For older homes, materials like asbestos can be a costly concern that makes buyers seek concessions or walk away.
If the sellers are struggling to sell a house in a tough market, the issue may be poor marketing or a difficult negotiation strategy. However, an aggressive, but fair, new offer can usually overcome these issues.
The Underrated Local Red Flags Unique to Colorado Springs
These two factors often cause a sale to fail late in the process. Consequently, the home is forced back on the market with an inflated DOM.
The Wildfire Insurance Premium Problem
Colorado is the sixth-costliest state for homeowners insurance. This is primarily because of wildfire risk. This issue is most pronounced in the wildland-urban interface (WUI) around the city.
“A long DOM is often a sign of a failed inspection period due to an insurance problem, not a home problem. Buyers must get a specific insurance quote before submitting an offer, especially in areas bordering the foothills, to avoid a deal-breaking surprise later.” – Barb Schlinker
A high DOM may mean a previous buyer’s lender rejected the insurance, or the quote was so high it made the home unaffordable. Buyers must get a specific quote immediately. This ensures the home is both insurable and affordable.
The Unpermitted Work Headache: PPRBD
The Pikes Peak Regional Building Department (PPRBD) oversees all necessary permits for major home additions or repairs. Unpermitted work is a genuine local hazard; it can void insurance coverage or force the new owner to pay for costly remediation.
- Risk Areas: Older homes and properties with recently finished basements or decks are high-risk for unpermitted work.
- Due Diligence: The first step for a buyer is to check the PPRBD site for verification. If the work is unpermitted, the new owner may be liable for fees or repairs to bring it up to code.
How to Turn a Long DOM into a Buyer’s Advantage
A long-listed home is not a trap; it is an open invitation to negotiate. The seller has demonstrated they are unable to achieve their initial goals. This gives you immense leverage.
“When a home has been on the market for over 90 days, the negotiation shifts entirely in the buyer’s favor. Don’t just focus on lowering the price; prioritize seller concessions like covering closing costs or buying down your interest rate. A motivated seller will often agree to concessions they would never consider during a hot market.” – Barb Schlinker
The Negotiator’s Toolkit:
- Prioritize Concessions: Ask the seller to pay 2–3% toward your closing costs. This will save you thousands upfront.
- Focus on Local Estimates: Get a local, citable estimate for condition issues like foundation or soil. Use that specific figure to request a price reduction. Do not use a generic lowball offer.
- Use the DOM as Leverage: Your offer must explicitly state that the seller’s long time on market is the reason for the aggressive terms.
Why Choose Barb Schlinker to Navigate the Colorado Springs Market
When investigating a long-listed home in Colorado Springs, you need an expert on your side. This person must understand the local, unique pitfalls—from PPRBD permits to wildfire insurance scores. The Barb Has the Buyers Team at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team is a top-tier real estate agency in Colorado Springs. We provide the strategic analysis needed to confidently turn a potential red flag into a great deal.
Our team is repeatedly recognized as the best realtor in Colorado Springs by our clients. Furthermore, we are known for our disciplined approach to due diligence. With hundreds of 5-Star Google reviews and a Navy veteran’s commitment to strategic execution, we ensure you don’t inherit a problem but secure an asset. We offer unique guarantees, which provide peace of mind in every transaction.
To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!
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FAQ
In most cases, a significantly high DOM indicates a motivated, if not desperate, seller. The initial sales momentum is lost. Also, the seller has likely had to carry the mortgage for several extra months. Consequently, they are now psychologically ready to move. For this reason, a high DOM home is considered a buyer’s market, regardless of the overall market trends. It means the seller has run out of options. They are ready to accept a lower price or more aggressive concessions just to close the deal.
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