It is generally accepted that if a home priced correctly should sell in 45 days or less. That is the short answer to the question.
Of course there are exceptions to this rule. We don't expect a multi-million dollar waterfront home to sell that fast. The pool of buyers for that type of home is much smaller. Folks in colder climates have to deal with the fluctuations of a more seasonal market. It takes longer to sell a home in the winter than in the spring or summer. Here in Florida we don't need to worry about that much. Average days on the market can vary from neighborhood to neighborhood depending on supply and demand. It is a complete myth that selling quickly means you left money on the table.
For the purposes of this article I am going to focus on homes most of us can afford. Let's call that anything within 50% of the median price in your area. You may have a home on the market or about to put one on the market and need to know what to expect. My expectation as a seasoned agent in a warm climate would be 45 days or less.
The two keys factors in home selling are Price and Exposure.
If you are at the 45 day day point or beyond, it is time to re-evaluate the marketing strategy. But it could also be the price. There is an undeniable correlation between price and the amount of time it takes to sell a home. Think of it this way. No matter what home we are talking about, there will always be a price it will sell for tomorrow. There is also a price where it will never sell. The true market value is somewhere in the middle.
Setting a price is as much art as it is science. In a cookie cutter community with a lot of sales activity it is usually not too hard to figure out a homes market value. Often we don't have that luxury. So it is important to listen to what the market is telling you after the home is listed. Your agent should be trying to get feedback from buyers whenever possible. Keep in mind, it may not always reliable. Most folks don't want to offend anyone with harsh criticism. Conversely, they may have a serious interest in your home, but don't want to show it and lose negotiating leverage.
I prefer to judge my listings performance with hard data. For me the best determination of how well my listing is doing in the market is the number of showing requests I get from other agents. For agents, time is money and most won't waste their time showing a listing they don't think they can make a deal on.
Not everyone who looks at your home will like it enough to make an offer. It usually takes between 8 and 10 showings to generate one offer. From there it can take several offers before a seller can make a deal. So as a seller you may need to have from 15 to 30 showings before you get it under contract. Therefore, if you aren't getting at least one to three showings a week, it doesn't look good for reaching a goal of selling in 45 days or less. If time is of the essence then you don't want to wait until you are at the 60 day mark to take action. Instead, evaluate the situation every two weeks and make adjustments if you aren't getting the traffic needed to reach your goal.
I bet if you are a seller you were hoping this article wouldn't be all about price. There are other factors that could be affecting traffic through your door. Proper marketing and exposure is important too. Ask your agent for links to your listing where it is being advertised. Are there plenty of high quality photos? Do the photos flatter the home? I'm sorry to say this but most agent make lousy photographers. The MLS is littered with horrible photos. Professional photography make a huge difference.
Where is it advertised? It's important that your home is visible on all the major real estate websites. Social media is becoming a great way to increase the visibility of your home listing. Digital advertising is changing rapidly. Have you ever shopped for something online and seen ads for the same item elsewhere on the internet? Since you are reading this you will likely see my ads soon.
Another key factor that will affect traffic to your home is the commission offered to the buyers agent. This may shock you, but agents tend to go where the money is. If you are offering a commission that is less than the properties you are competing against, your home will be promoted less. 9 out of 10 buyers will hire an agent to help them buy a home. Consider offering a bonus to the buyers agent.
Who wants to buy a home no one else wants?
Without question the number one question I get asked when showing a home to a prospective buyer is "How long has it been on the market?". This is an important criteria for buyers. Who wants to buy a home no one else wants? Once a home has been on the market for more than 90 days that number is working against the seller. At this point buyers will question whether there is something wrong with the property or the neighborhood. They may also question whether the seller is truly motivated to sell. The number two question I get asked from buyers is "Why are they selling". That's because buyers prefer to work with motivated sellers.
If your home has been on the market for a while its time to reflect on your motivation to sell. You should also take a close look at how you can make your home more competitive against other homes in the neighborhood. Conditions favor the seller right now a little bit. Yet, there is enough uncertainty in the economy that buyers are being very cautious. It is a myth that there is one perfect buyer for your home. You will grow old waiting for that phantom buyer.
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Serving The Greater Fort Lauderdale area since 2006
You can reach me 954-895-2431
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