We’ve all driven by a house with a FOR SALE sign out front that doesn’t budge or change day after day after day … and then the days become weeks and the weeks become months. We start to wonder why there aren’t any interested buyers. And then we ask ourselves, “Is there something wrong with that house? Why isn’t it selling?” It’s a good bet that there’s something going on with a property that doesn’t ever seem to sell. Maybe (perhaps likely), it’s simply overpriced, and the prospective buyers who’ve visited it like it but not enough to spend that much money on it. The first thing a buyer is going to ask their agent when they become interested in your home is "how long has it been on the market"? You may have asked your agent the same question when you purchased your home.
The reason your prospective buyer wants to know how long the home has been on the market is they are determining how they will negotiate with you. If a home has only been on the market a few days or a couple of weeks, the buyer will assume there won't be much room for negotiation and if they truly want the house, they will be more inclined to make a strong offer.
If your home has been sitting on the market for several weeks, the prospective buyer will use the 'days on market' to negotiate against you, creating a 'buyer advantage' in negotiations. The longer your home is on the market, the lower your offers will be (if you get any offers at all).
The Regional Multiple Listing Service keeps track of Cumulative Days on Market (CDOM) on all listings, and publishes that information for the consumer. This is why it is so important to put yourself in the best possible position to create a sale within 30 days after coming on the market. This will allow you to negotiate from a position of strength with the buyer. Many sellers who choose to 'test the market' at a higher price, or keep an elevated price with minimal showing activity, soon realize that they are now 'chasing the market' and eventually will need to sell for far less than they would have if they had been correctly positioned in the market in the first few weeks. The 'parade' of buyers comes by only one time - when you are a new listing on the market.
It there are a significant amount of online views with minimal or no showings, it becomes apparent that the Buyer/Prospect is ruling out your home before touring the home. This generally has to do with either price, location, dated interiors, and/or curb appeal. As your Agent, I am your advocate. I promise to be honest with you about any and all objections, even if it means you may be disappointed. I always stress the need to pay attention to what the market is telling you when going over listing documents. Generally, the first TWO full weekends of the listing period will tell you everything you need to know. The reason the number of days that house has been sitting on the market doesn't really matter. The reality is that the longer it sits without an offer, the more it stagnates. Interest (if there is any) wanes, and the more its owners feel the increasing pressure of trying to entice a buyer to make a bid on it. In order to avoid having your house end up being that house that sits on the market forever, it’s important to price your home to sell.
If your listing is exhibiting any activity warning signs, swift price modifications may save you tens of thousands of dollars over a home that has been on the market for an extended period of time. In the real estate profession there is a saying "Price Overcomes All Objections". If your home has objections, price modifications will be necessary to procure an offer.
Remember:
The Market Value of Your Home IS NOT:
1. What you have in it;
2. What you need out of it;
3. What it appraised for;
4. What you heard your neighbor’s house sold for;
5. What the tax office says it is worth;
6. What Zillow or Trulia says it is worth;
7. Based on memories and treasures;
8. Based on prices of homes where you are moving.
The True Market Value of Your Home IS:
1. What a Buyer is willing to pay for the property – TODAY.
2. Based on today’s market;
3. Based on today’s competition;
4. Based on today’s financing;
5. Based on today’s economic conditions;
6. Based on the Buyer’s perception of property condition;
7. Based on location;
8. Based on normal marketing time.
As a Seller You Control:
1. The price you ask;
2. Condition of the property;
3. Access to the property.
As a Seller You Do NOT Control:
1. Market conditions;
2. The motivation of competition;
3. The Buyer’s Perception of Value
Warning Signs:
1. AGENT elimination: If agents are not previewing, or if they preview, but do not show it, they are eliminating your property;
2. BUYER elimination: If your home is being shown with no results, buyers are finding nicer properties in your price range that they are making offers on;
3. In either case, this is an indication that your home is not priced at appropriate market value for its condition.
I take great pride in making every attempt possible to maximize the value of your home several ways. I begin by utilizing the comparable properties in the market and recommend a price that is in line with active, pending, and listings that have sold within the last 6 months. You should know that the comparables may, or may not ultimately determine the Buyer's perception of value. Condition, location, neighborhood surroundings, proximity to rental complexes and/or commercial structures will be evaluated by most Buyers before they even set foot inside your door. Often Buyers will drive by the home before setting an appointment with their Agent. This is why curb appeal is so important. Be sure that your front lawn is mowed, edged, and irrigated. It is very important to pay attention to what the market is telling you once your property goes into the RMLS. The perception is: The longer the home has been on the market the more likely it is perceived to be over priced and/or have something wrong with it.
Aggressive, ongoing marketing begins once the property is listed in the RMLS. There are many techniques required to maintain a dominating internet presence for your home. Many ads need to be manipulated on a regular basis to remain fresh and at the top of the Buyer's search. Several venues provide statistical data which defines how many views and/or clicks your listing is receiving on a daily basis. Those statistics are tracked in order to give us a sense of what the Buyers are thinking about your home.
Negotiation becomes extremely important once you have a Buyer that is interested in your home. I bring nearly 3 decades of experience to the table when it comes to the real estate process. Knowing how to negotiate in the current market should be left to the professionals. This is often the most critical component required to make sure you are not leaving any money on the table, and maximizing your bottom line.
In the end, following your Agents guidance will provide a smoother transaction. I am very conscious that the final decision is always up to you. I understand the need for making as much money as you can on the sale of your home. I will partner with you to make that happen with every piece of advice I provide.
Mark Vandervest, Principal Broker
FRESH START Real Estate, Inc.
Real Estate Sales & Acquisitions
Professional Property Management
503-941-0775 Office
503-941-0776 Fax
www.FRESHSTARTofOregon.com
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