How Long It Takes to Sell
Average selling times have decreased tremendously based on the low supply of inventory in recent years. When your property is first put on the market, creating a perception of value and a sense of urgency will get you the greatest number of showings.
Buyers who look at your property in the first few weeks are typically financially qualified and have been working with a Realtor®. They will likely have seen other properties in the area, and know about market prices. They contacted agents months ago about properties they found, and are prepared to make offers when they see the right home at the right price.
By the seond or third week, the number of showings will drop. From this point, most potential buyers are just entering the market and will not be ready to make a decision for months. They still have to arrange financing and have not seen enough properties. So, your best opportunity is during the initial exposure to the market. This is when you’ll have access to the largest pool of buyers, and when properties sell at the highest price.
Buyers pay attention to how long a house has been on the market, and their perceptions change accordingly:
A house that has been on the market for only two days is a “must see.”
As the days pass, buyers think the seller is anxious and should be willing to negotiate.
When the property is on the market longer, they wonder why it hasn’t sold and think something might be wrong with it.
Buyer perceptions of value decrease with every day a house is on the market. This is another reason a property will most likely sell at its highest price within its first few days on the market.
Pricing your home
Your home is only worth what a buyer in the current market is willing to pay; in other words, fair market value. This is the highest price an informed buyer will pay, assuming there is no unusual pressure to complete the purchase. In the Fenton area, we are seeing asking prices and above in certain price ranges and areas.
You will know if your home is priced right by the number of showings:
If a property is overpriced, buyers and agents will notice it when it hits the market, but there won’t be a perception of value. Therefore there will be no showings or offers.
If a property is priced close to buyers’ perception of current value, there may be some showings, and possibly an offer. Without competition and a sense of urgency, there is no need for a buyer to offer the asking price.
If the property is priced a little below buyers’ perception of value, it becomes a hot property. There will be numerous showings, multiple offers, and possibly a bidding war. By setting the price a little below buyers’ expectations, the seller simulates the conditions found in an appreciating market, and ultimately sells more quickly and possibly for more than the asking price.
It is our job to watch the market and determine how your property stands out against the competition. It is also our job to make sure you position your property at a price to drive traffic to it and create the best conditions for more than one offer. This is why we recommend asking prices based on recent listings and selling prices of houses in your neighborhood.
If you want more help on accurately pricing your home, you can also:
Order an appraisal to price your home.
Ask for feedback from people who walk through your home. This will help you see your house as a commodity that has positive and negative selling points.
Ask a neighbor, friend or relative to point out advantages or disadvantages about your house that you might not have considered.