Last time we talked about ‘what buyers want’ when they seek a home to purchase. The key take-away there was “most bang for the buck”, or in other words, a fair price for all. Further evidence of that is the chart of Seattle Eastside Mar 2011 Moving from “For-Sale” to “Sold”…very telling.
- The first part of the chart indicates the ramifications for pricing too high. The first 30-45 days on the market are so important, so the original list price is extremely important. The odds of selling a property that’s priced according to the market in the first 30 days are 60%, without a price drop, for 98-99% of list price. WOW! Powerful info!!
- The second piece of the chart depicts the relationship of days on market to the sales price as a percentage of the original list price. So 6 months on the market could cost a seller more than 15% of the original list price PLUS the carrying costs of those 6 months on the market. (Carrying costs equate to all of the monthly household costs of the ‘for-sale’ home PLUS the cost of acquiring the next residence with those carrying costs, i.e., costs of maintaining multiple homes.)
- The third piece of the chart shows that nearly 62% of the properties that sold, sold in the first 30 days on the market. That percentage increased to 80% in 60 days of market time.
- So the moral to this analysis is, the longer a home is on the market, the odds of selling decrease dramatically (20% after 60 days), as well as a 10-15% decrease of sales price to the original list price. Another way to look at this is Price over Time: odds of selling decrease over time with a direct correlation to the final sales price.
- So the question is, “Do you want to sell or stay?”