One of the most common questions buyers ask is "how long has this house been for sale". In realtor lingo that statistics is "days on market". Do days on market really matter when selling your home?
Real Estates Boards provide realtors with a monthly statistics package for each community. I'm in the South Surrey, White Rock area of British Columbia, Canada and our board is the The Fraser Valley Real Estate Board (FVREB). Within that package of stats is the average days on market for each category of listing, i.e., single family homes, condos, etc. These statistics are important to realtors as they can gauge each listing and inform their sellers of market conditions for selling.
Now the buyer does not really care how many days on average it takes a house to sell. Their only concern is the days on market of the particular house they are interested in. That little statistic results in the potential buyer jumping to conclusions. If the property has been on the market for a long period of time, buyers can perceive that something is wrong with the property and shy away, or alternatively they jump to the conclusion that the seller is desperate.
The eight most common reasons a house is longer on the market than the average is:
1. Overpricing. Often buyers chose the realtor that quotes them the highest potential selling price, rather than the most realistic selling price. That is one of the worst mistakes a seller can make. Once a seller gets their hopes set on a selling price, it can be difficult to move away from that. In the end, it doesn't matter what the realtor or the seller think the house is worth, it's what the buyers (i.e, the market) think.
2. Market Testing. The seller is not really motivated to sell their house but is just testing the market. They will sell if they get the price they seek. This is rarely successful unless the price they seek is market value.
3. Not Viewing Ready. Sometimes sellers put a home on the market before it is ready to show. Broken mirrors, cupboards, bad smells, dirty windows, toilet seats up, carpeted bathroom, clutter, etc. These are big deterrents to buyers.
4. Not Viewing Available. If a house is tenanted and/or the seller is not flexible to allow viewings, the house can have less buyer traffic
5. Poor Marketing. Does the MLS listing come up with no photo or one photo. Is there little information or misspellings in the listing? Has their been a mail out to neighbors? Is the home featured on the realtor's website. I could go on and on. Marketing does sell.
6. Down Market. Sometimes the market is on a downturn. In this type of market a home that would take a week to sell may take six weeks or more.
7. Stubborn seller. This is self explanatory and goes to the human nature in all of us. I'll be listing my own home in the next couple of years and I'm going to have to fight my own inner stubbornness, and listen to my own advice and price it right.
8. Elephant in the room. Sometimes there is a major issue with the home that is difficult for buyers to overcome. Does the home have mold, significant power lines near the home, on a busy street.
The reason a home is not selling could be one or more of the above eight reasons. Sellers can overcome many of the above through preparation and marketing. If the seller is unable to unwilling to change the obstacles, then it comes down to price. Most homes will sell within a reasonable time if it is price at, or eventually below, market value.
Real Estates Boards provide realtors with a monthly statistics package for each community. I'm in the South Surrey, White Rock area of British Columbia, Canada and our board is the The Fraser Valley Real Estate Board (FVREB). Within that package of stats is the average days on market for each category of listing, i.e., single family homes, condos, etc. These statistics are important to realtors as they can gauge each listing and inform their sellers of market conditions for selling.
Now the buyer does not really care how many days on average it takes a house to sell. Their only concern is the days on market of the particular house they are interested in. That little statistic results in the potential buyer jumping to conclusions. If the property has been on the market for a long period of time, buyers can perceive that something is wrong with the property and shy away, or alternatively they jump to the conclusion that the seller is desperate.
The eight most common reasons a house is longer on the market than the average is:
1. Overpricing. Often buyers chose the realtor that quotes them the highest potential selling price, rather than the most realistic selling price. That is one of the worst mistakes a seller can make. Once a seller gets their hopes set on a selling price, it can be difficult to move away from that. In the end, it doesn't matter what the realtor or the seller think the house is worth, it's what the buyers (i.e, the market) think.
2. Market Testing. The seller is not really motivated to sell their house but is just testing the market. They will sell if they get the price they seek. This is rarely successful unless the price they seek is market value.
3. Not Viewing Ready. Sometimes sellers put a home on the market before it is ready to show. Broken mirrors, cupboards, bad smells, dirty windows, toilet seats up, carpeted bathroom, clutter, etc. These are big deterrents to buyers.
4. Not Viewing Available. If a house is tenanted and/or the seller is not flexible to allow viewings, the house can have less buyer traffic
5. Poor Marketing. Does the MLS listing come up with no photo or one photo. Is there little information or misspellings in the listing? Has their been a mail out to neighbors? Is the home featured on the realtor's website. I could go on and on. Marketing does sell.
6. Down Market. Sometimes the market is on a downturn. In this type of market a home that would take a week to sell may take six weeks or more.
7. Stubborn seller. This is self explanatory and goes to the human nature in all of us. I'll be listing my own home in the next couple of years and I'm going to have to fight my own inner stubbornness, and listen to my own advice and price it right.
8. Elephant in the room. Sometimes there is a major issue with the home that is difficult for buyers to overcome. Does the home have mold, significant power lines near the home, on a busy street.
The reason a home is not selling could be one or more of the above eight reasons. Sellers can overcome many of the above through preparation and marketing. If the seller is unable to unwilling to change the obstacles, then it comes down to price. Most homes will sell within a reasonable time if it is price at, or eventually below, market value.
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