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Days on Market: Why it Matters

July 30, 2018 by bzawaski

     Days on Market, Why it Matters

       Once the market analysis is completed, listing signed & post sign is set in the ground the real work begins. Putting the market plan into action is now a priority one. Discussing how to react when things don’t go as planned is equally important as the initial plans themselves. Sellers may not be receptive to talk of any upfront failure and Brokers will be treading lightly as well. It’s important that an honest dialogue take place upfront in order to keep things in proper perspective.                                                                                                                                                                   

There are a variety of reasons why a Seller may elect to dismiss the importance of staying on the market for too long. In some cases, it’s overconfidence that they’ll sell quickly. Certainly, Brokers’ enthusiasm can be contagious and can add to unbridled confidence. In some instances, a Seller may feel he/she can wait for their price and is seemingly in no hurry. Again, a Broker who would knowingly list a property at a price higher than the market indicates could be complicit by “buying a listing”.                                                                                                                                             

Whatever the reason may be, the end result is most likely a lower net price to the Seller. Whether a Seller is overly confident or seemingly in no hurry to sell,  it’s a Brokers’ job to present the facts. Without ready-made days on market to sale versus list price indicator we did our own analysis and here are the results.

We took closed sales of detached single-family homes Northwest of Sunset Highway (area 149 & zip code 97229) over the last two months, June & July of 2018, in the $600,000 – $700,000 range.  Here’s the breakdown:

DOM        # Sold Units    Listing Volume    Sold Volume   %SP/LP

0-10                    17                 $ 10,183,272         $ 10,226,250     100.42%

10-30                   7                  $  4,697,800        $  4,682,425         99.60%

30-60                  7                  $   4,722,933         $  4,618,928         97.70%

60-90                  3                  $   1,944,800        $  1,919,990          98.70%

90 – +                   2                  $   1,354,995         $  1,313,595          96.90%

There was a time when Brokers ‘freshened up’ listings by entering them as new. In virtually all cases & all places cumulative days on market (CDOM) follows the listing, making that strategy useless. Seller’s who might be relying on their own good fortune as opposed to hard facts might question the marketing efforts. A review of the Brokers  Social Media plan and implementation is always advisable. Buyer’s have become far more sophisticated in their use & understanding of history & time on the market. Sending the same message repeatedly eventually has the opposite effect on those it’s supposed to reach thus, the simplest solution is often times the most logical i.e., price reduction. 

No two listing scenarios are the same thus, there are a variety of market indicators your Broker can provide. First & foremost of course is actual showings and a gauge by which to compare with other homes that have sold. The $600,000 – $700,000 homes referred to above may not require the same number of showings that a home priced at $350,000 will in order to get maximum results. Second, our local RMLS monitors daily view counts which an experienced Broker can use for illustrative  purposes. Third, monitoring view counts from public websites, as well as Broker managed social media can also be useful. Deciding when it’s appropriate to make a change or stay the course is crucial to avoiding unnecessary days on market.

When Marketing Your Home it’s important to review essentials such as Maximizing Multiple Listings all the way thru to Negotiating Offers. It’s equally important to discuss the potential pitfalls that may come your way so they can be dealt with.

                                                                                            

 

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Filed Under: Buyers, Houses, Real Estate Best Practices, Real Estate Education, Sellers Tagged With: Real Estate Agents, Real Estate Listings, Real Estate Marketing, Real Estate Sellers, Realtor, Realtors

About Us

Bob Zawaski G.R.I., S.R.S., A.B.R., S.F.R.,  e-Pro I take a truly consultative approach to working with my clients to ensure satisfaction. I start by defining your needs and objectives. Whether you are looking for your first home or looking … Read more...

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Bob knew the markets better than others we have ever spoken to and we felt that he was always working in our best interests as buyers. He went above and beyond in trying to make contacts with other selling realtors and they could learn a thing or two from him as well. He was never late for a meeting at a home and was very knowledgeable in what to look for as an investment or "fix-it" issues. We would recommend him in a second!

 K. Oliver

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