WHAT’S THE IMPORTANCE?
What is the importance of Days on Market of properties that just sold and how does it relate to positioning and pricing of your home? There are a few things to look at while estimating the price of your real estate property; including location, condition, market economics, recent activity and days on market.
It is important to know how long your property is likely to be on the market. Days on Market of previously sold homes are strong indicators of your selling success. This indicator helps to paint a clear picture of what today’s buyers are willing to pay for a home like yours in a typical market.
TO CALCULATE DAYS ON THE MARKET
To determine the average days on market, we take the most recent sold listings, add together the days on market (before each listing went pending) and divide that total by the number of listings. In extraordinary circumstances, properties that have been on the market for more than 6 months are tossed out of this particular equation to get a more accurate indicator of success.
WHAT IS THE COMPARISON?
Which is more important? Is it the average days on market or the number of days on market of each listing? If the average days on market was 16 days and you’re a seller whose home has been on the market for 17 days, you will have fallen into the lower 50% of homes that sold over the previous month. This is an indication of either the need for a price change or a different strategy.
HOW BUYERS LOOK AT DAYS ON THE MARKET
When buyers see extensive days on market, they figure the seller is desperate to sell because the home is still on the market or they believe there might be something wrong with the home that caused other buyers to pass it up. Both of those assumptions, however, can be wrong.
HOMES CAN LINGER ON THE MARKET FOR THE FOLLOWING REASONS
• Overpricing (the most common reason)
• Little seller motivation
• Unavailable to show due to property condition or tenants or
UNUSUAL CHARACTERISTICS/PRICE
Finally, it is important to examine if your home has unusual characteristics, or is in a higher price bracket. It could mean there’s no one qualified to buy it. If your home is in these categories, you may be in for a longer wait.
Remember that every neighborhood is unique. Days on market are considered an important indicator for price positioning.
To find out more about how Days on Market has an affect on the value of your property, please call Pat at (805) 451-3977.
What is the importance of Days on Market of properties that just sold and how does it relate to positioning and pricing of your home? There are a few things to look at while estimating the price of your real estate property; including location, condition, market economics, recent activity and days on market.
It is important to know how long your property is likely to be on the market. Days on Market of previously sold homes are strong indicators of your selling success. This indicator helps to paint a clear picture of what today’s buyers are willing to pay for a home like yours in a typical market.
TO CALCULATE DAYS ON THE MARKET
To determine the average days on market, we take the most recent sold listings, add together the days on market (before each listing went pending) and divide that total by the number of listings. In extraordinary circumstances, properties that have been on the market for more than 6 months are tossed out of this particular equation to get a more accurate indicator of success.
WHAT IS THE COMPARISON?
Which is more important? Is it the average days on market or the number of days on market of each listing? If the average days on market was 16 days and you’re a seller whose home has been on the market for 17 days, you will have fallen into the lower 50% of homes that sold over the previous month. This is an indication of either the need for a price change or a different strategy.
HOW BUYERS LOOK AT DAYS ON THE MARKET
When buyers see extensive days on market, they figure the seller is desperate to sell because the home is still on the market or they believe there might be something wrong with the home that caused other buyers to pass it up. Both of those assumptions, however, can be wrong.
HOMES CAN LINGER ON THE MARKET FOR THE FOLLOWING REASONS
• Overpricing (the most common reason)
• Little seller motivation
• Unavailable to show due to property condition or tenants or
UNUSUAL CHARACTERISTICS/PRICE
Finally, it is important to examine if your home has unusual characteristics, or is in a higher price bracket. It could mean there’s no one qualified to buy it. If your home is in these categories, you may be in for a longer wait.
Remember that every neighborhood is unique. Days on market are considered an important indicator for price positioning.
To find out more about how Days on Market has an affect on the value of your property, please call Pat at (805) 451-3977.
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