Once the market analysis is completed, the listing signed & post sign is set in the ground the real work begins. Putting the market plan into action is now a priority. 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 the market to sell versus the 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. Sellers who might be relying on their own good fortune as opposed to hard facts might question the marketing efforts. A review of the Broker’s Social Media plan and implementation is always advisable. Buyers 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.