Back in the “crazy” Big Bear real estate years of 2000 thru 2007, the longer a home was on the market, the more a seller could get for it. The prices were going up every month, and sellers were getting lucky. Over the past 5 years however, this process has flip flopped. Generally, the longer a home sits on the market, the lower the price it will fetch. Seems pretty simple. Yet, sellers continue to tell me they want to sell, but they are not in a hurry.
Therein lies the conflict: wanting to sell but also wanting to take your time.
The longer a property sits on the market, the lower the odds it will sell for the asking price, or even close to the asking price. This happens for several reasons.
First, buyers are out there looking for properties everyday. So, if a property has been on the market for a long time, the automatic assumption is something is wrong with it and the asking price is too high. “Why esle would the other buyers pass on it,” they think. At this point, sellers are setting themselves up for “low-ball” offers.
Secondly, the longer it is on the market, the less attention people give it. Similar to a loaf of bread at the supermarket, if it doesn’t sell the first week, it gets pushed back on the shelf to allow room for new product, and ultimately it is thrown out. Properties that sit on the market become stale, just like bread, and buyers ignore them in favor of the new products on the market.
Lastly, the prime time for a exposure of a property is the first 30-45 days on the market. That’s when it will get the most “eyeballs” on it. So, it makes a lot of sense to make the best impression on buyers during that small window of time. Miss that window and you are fighting an uphill battle from then on.
All of these add up to the same conclusion: if you truly want to sell for the most money, price it aggressively to the market, expose it properly, & be ready to sell in a 30-45 day period. The odds will be in your favor by doing so.