Why Days On Market Are More Important To Home Sellers
Home Pricing Guide
After studying 8 in demand cities located in Georgia’s rising suburban towns, it became very obvious that there were statistical trends that almost all home buyers were likely not conscious of, and thus needed a Home Pricing Guide. Just for the record, we reviewed the most recent 6 months of information in 2011. Each data set had between 120 homes and 500 homes that had sold.
Updated 2015 – note that average days on market is less then 30 days it’s impossible to do a study like this. However, as homes exceed this 30 day trend it’s even more pronounced in 2015 then it was in 2011.
Why Getting It Gone in 30 Days Matters
Many of the home sellers we’ve talked to didn’t want to price too aggressively, perceiving they are leaving money on the table. However, from our research study it actually determined that to be a MYTH! In 5 of the 8 cities, homes that sold in 0 to 30 days sold for 98% of the listing price or more. In 2 cities (Norcross and Duluth), homes that sold in 0 to 30 days sold for over 100% of listing price. No city performed worse than 97%.
If you notice in 2015 what’s happening is exactly the same, only this time is more evident. In every single instance SPEED of sale is directly related to the PRICE you get. Want to get 100% or more of asking, price it right. Each line shows days on market.
What Happens After 30 Days
This is where it starts to get scary. In all 8 cites, homes for sale in Georgia sold for between 94% and 97% of the listing price with only one exception, Duluth which sold for 99% (down from 102.26%). So selling your home just better than normal actually cost home owners around 3%!! This was true of all market, Lawrenceville Real Estate behaved the same as Marietta or Buford Homes.
Average
Contemplating about offering for sale your home in a 90 day period of time? That’s actually the bulk of the homes that sell, sell in this time frame. Unfortunately, those sellers who’ve done typical, have only netted around 95% of their listing price. Even Duluth, our outlier in this report is down to 97%, a whopping 5% from the potential of selling for 102% of asking.
After 120 Days on the Real Estate Market
If you’re unfortunate enough to have a real estate agent that wasn’t “real” with you or maybe you were too headstrong to recognize the market — whatever the case may be, if you home languished for 120 days or more, you’ll be getting on average 90% of your asking price.
So Now What
It’s obvious that you should goal to be one that sells your home initially and within the first 30 days. The fact is that each single buyer in the price window will be aware of your home for sale if adequately marketed within the first 2 weeks. Some may argue that this just shows the natural development of price reductions from sellers who don’t sell – that’s right, but see the significant 10% reduction after 120 days. Notwithstanding, had a Duluth home owner who knew the market priced his/her home at 95% of market value, the data show that they would have obtained at least 102.26% of asking or rather 97% of market value, vs a person who wished a little more at 100% or more of fair market value and had to reduce it to 91% of market value to get it sold.(Plug in your numbers on your home to see How much money this is!)
Real Estate Market High Points
- Duluth Real Estate showed the most strength of all cities tested with 102.26% of the list price if sold in the first 30 days.
- Surprisingly Alpharetta Homes For Sale did the worst, coming in at 97.09% of asking price if sold in the first 30 days. However, Alpharetta, also wavered the least as time went on.
- One interesting note is that homes that sold in the 90 to 120 day time frame increased on average around .75%.
- The average home in every one of these cities was a 4 bedroom, 2 bathroom home.
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