Selling your home is a complex process that could take weeks, or even months, from prepping and staging, through showings, and the paperwork for closing. But the most time-consuming part is one aspect that is the length of time your home is in the market.
It’s crucial to choose the right time, as it’s often the most stressful time. It’s possible that you’re worried about the price you’re asking for or the open houses or viewings, irritated by negative feedback from buyers, frustrated as you wait for offers or worrying about the exact date you’ll be required to move out of your house. The pressure from relatives, looking for a new home or moving house, and possibly beginning a new career can create a situation that is even more stress-inducing.
How fast will your house be sold? The answer is contingent on the condition of your home, how it is valued, where it’s located in, the condition it’s in and how strong the neighborhood’s market, as well as other things. Here are five aspects to take into consideration.
1. Price of the offer
The price a house is the main aspect in the length of time in the market. homes that are priced well in relation to their value will attract buyers even if they’re in good condition or located in an ideal spot. Overpriced homes will take longer to sell, even if they’re located in excellent location and in excellent condition.
If you’re home isn’t worth the price there are a few alternatives for Selling House it. You can reduce the price you’re asking for or accept an offer less than the price you’re seeking to significantly improve your property’s condition, or get your home off on the market, and then wait until a more suitable moment for it to be sold.
The primary price implies that you have to determine your price in accordance with your preference for a fast sale or one that is slow. In order to speed up your time frame think about setting your price value on the lower end of the home’s value. If you’re not in a rush to sell your house and don’t mind the inconvenience of putting your home listed for sale think about setting a higher price to ensure you can get more equity.
Some agents will not market homes that are priced too high. Some will be willing to take a chance and hope that you’ll lower your expectations prior to the time your listing ends.
2. Home in good condition
The age of your house and its condition generally don’t play as big a role as the asking price for the speed at which your house will sell. Sometimes, a fixer-upper that’s priced at a bargain is more likely to sell than a brand new, in good condition house that is priced too high. In some cases like an area with a lot of updated or modernized houses, a more traditional house may be left in the search for an owner.
One thing that can affect the outcome is whether the property is properly staged to attract prospective buyers. A study entitled “2017 Profile of Home Staging” by the National Association of Realtors found that 38 percent of sellers’ agents stated that they staged all of homes of their sellers prior to when they put them up for sale, and 39% of them said that staging reduced the time needed to sell a property. The most commonly staged were the living area the kitchen, sleeping room, master, and dining area.
3. Lot and the location
It is evident that location is an important aspect in determining a property’s value as well as the time the process takes for selling. Buyers vary however certain elements are likely to make a house’s area more or less valuable.
4. Market conditions
Real real estate markets are known for being seasonal. Selling a property in a market that is hot could be quite a different from selling in the cold market.
Hot markets are defined by high demand, limited supply (also called inventory) and rising prices. They also have bidding wars, multiple bids or waivers of contingencies as well as rapid sales. They are also known as seller’s markets since their conditions favor sellers when negotiating with buyers.
Cold markets are characterised by the absence of demand, the high level of inventory, decreasing rates, reduction in prices concessions to sellers and slow sales. They also have short sales , and bank foreclosures. They are also referred to as buyer’s markets due to their conditions that allow buyers to have a monopoly over sellers.
Markets can shift quickly. If the market is in transition the process of selling a house can be more difficult. If the market in your area is growing and you are able to offer a price a bit higher than most recent prices for similar homes.
In contrast, if the market is sagging it is possible to be more cautious with your projections. The most likely scenario is that you overvalue your home in a down market, and then be swept into an endless stream of price cuts when you track the market’s downward trend. Chances are you’ll eventually sell your home at a price lower than what it worth at the time you set your initial price. We discuss this in greater detail in our article on the housing market.
A crucial metric that reveals the degree to which a market is hot or cold, is the amount of days houses are in the market prior to the buyer accepts an offer. The longer the days-on-the-market (DOM) tracking device is, the more slow or colder it is.
The DOM of a home can be drastically different in a given market. In August 2018, houses located in the U.S. were on the market for an average of 61 days before being sold in accordance with Realtor.com. The local data for the month show slow sales in certain cities, but relatively higher sales in other cities.
The average DOM may also differ according to market segment. For instance, homes that are priced at entry level could be selling quicker and slower than trade-up or luxury properties.
5. Seasonal patterns
There are many real estate markets that experience the effects of seasonal fluctuations. In some areas there are more homes sold in the springtime, and less during winter, because more buyers want to move when school is not in session, and not in winter, which is when shorter days, class cliques and snowfall makes moving an exercise. On the other hand, hot warm summers as well as mild winters result in different patterns of house sales. The ideal time to sell a house in Florida isn’t identical to the most optimal time to sell a house in Minnesota.
If you reside in a market that is highly seasonal there is a chance to sell your house faster in the peak home-selling time regardless of the calendar of school, as more buyers are eager to take a bid. If your market isn’t experiencing many seasonalities, the timing of your home’s sale might not have a significant impact.
In the end, the amount of length of time required to sell the house is based on the interplay between prices, market dynamics and properties and neighborhood particulars. The time it takes to sell your home is dependent on the timeframe you set and the decisions you take regarding your house and the way you will market it.