Northern Virginia Realtors

Days on Market: What is the significance?

Chantilly Highlands realtor, Chantilly Highlands homes for sale, Homes for sale in Chantilly Highlands

Active Homes for sale in Chantilly Highlands: HomesByBachman

 

 

Days on Market: What is the significance?

Welcome Home to Chantilly HighlandsDave: As a prospective home seller, what is the significance of the length of time my property is on the market?
 
Steve: One of the first things that buyers want to know before making an offer on a home is how long it has been on the market  compared to similar homes in the neighborhood. Most buyers tend to make lower initial offers on homes that have been for sale for more than the community's average. The buyer's agent will determine the community's average days on market for his client and as the seller, your listing agent should have provided you this information when you discussed how to price your property.

Dave: How do buyers know what my home should be selling for?

down in the woodsSteve: The rest of this requires a long answer Dave.  There is no mystery in obtaining historical sales figuresThe Main Corner for your neighborhood, as all previous sale prices are available for any realtor's consumption and the buyers they represent. That is one reason  that you need to price your home correctly right away and not price it above what the current market conditions show as appropriate for its condition and location. This does not mean that  you need to UNDER PRICE your home!

 

 

It means that you and your agent should analyze the condition of your property and its location compared to the other comparable homes that have sold within the last few months in your area, and price it "at market" when you first publish it for sale.... not above and not below. Do NOT use Zillow or any other  public estimating software...they are NOTORIOUSLY way off. Their data is old and not detailed enough for your purposes.



You see, all buyers have access to the very same data that you do,  if the buyer's agent is worth a hoot, andLow a rose 'ere blooming buyers tend to offer less for homes that sit unsold for more than the community average of days on market. They assume that the home is over priced or that the seller must be getting anxious for a sale. Therefore, they submit offers you will not be happy with. However, if a home has been available for only a few days, buyers tend to make offers closer to the list price, if that price is close to the true market value for the area.

 

 



If the days on market for a property is high, some buyers will not consider it, thinking something must be physically or structurally wrong.. Smart buyers know that what is probably wrong is that the list price was set higher than current market value and they use the high days on market figure as justification for negotiating a lower price.

 

 

Dave: This is getting to be a pretty long explanation. Could you summarize?

Steve: In summary, as a home seller there are two reasons you need to be aware of days on market. First, the longer your property is on the market, the lower the offers will be from buyers. This is why homes almost always sell at their highest price within the first 3 weeks of being listed, especially in a depreciating markets where prices have been historically weak. Have your listing agent provide you with the data for your area, to determine if available housing inventory is high compared to sales, which would indicate a depreciating market where more power lies with the buyer, and more pressure on you the seller



The second reason that you as a seller needs to consider average days on market, is that it is one of the items that you should bring up when interviewing prospective agents to list your home. All competent, professional full time Realtors can give you complete days on market data for your neighborhood and they should be able to show you how to price your home using price per square foot and/or percentage  of sold price to tax assessed value for comparable properties.

 

 

 

You should be presented with an an easily understandable spread sheet. There is no mystery to evaluating days on market and although figuring out an appropriate initial list price for your home requires some art and subjective evaluation, as well as logic, any good agent should be able to lay out the facts and have a coherent pricing plan with the figures to back it up. Do not choose one that cannot provide this information. It is a true sign that you are talking to an amateur, pretend real estate agent.

Chantilly Highlands realtor, Chantilly Highlands homes for sale, Homes for sale in Chantilly Highlands

 

Why pay more and get less when selling your home? Jan and Steve Bachman of RE/MAX Gateway use professional photographers, create interactive photo floor plans, print full color brochures, and make an individual property website for your listing that goes out to 40+ public real estate search sites including Realtor.com, Trulia, Zillow etc.

 

We also create a custom photo tour that is sent to other agents and prospective buyers.

 

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RE/MAX Hall of Fame, Platinum Club, A Washingtonian Magazine Top Agent 2018

Happy to Help. No Hassle, No Pressure.

Jan and Steve Bachman are full time Realtors® with RE/MAX, specializing in Homes for Sale in Fairfax, Loudoun, Prince William and Arlington Counties.

    

 

Our 3 rescue dogs have been GREAT! Go get a couple.

Comment balloon 4 commentsSteve and Jan Bachman • December 22 2009 02:20PM
Days on Market: What is the significance?
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