Tuesday, August 14, 2018 / by Sherry Kwintner
Do you remember those days back in school where you just wondered, “When am I ever going to need this information?” A lot of classes like statistics seemed like they just went right over our heads and that we’d never revisit those topics later in life. Well today, I’m here to say that those classes do make a difference. Let me explain.
On the Sells Strong Team, we like to pay attention to the numbers—it’s very important for us to study what the market is telling us so that we can help you make better choices on either your sales price or the offer you want to present to a homeowner.
I have some numbers on the markerboard that I’d like to discuss with you today. We study 41 markets in the area, and of those 41 markets, we had 15,747 homes close from April until the end of June.
Of those 15,747 homes that closed, the market rejected 30.5% of them. This means that those 15,747 homes make up 69.5% of homes that were priced correctly.
The good news is, instead of us calculating all of those numbers with a pen or calculator like we did back in school, now we have algorithms and systems in place. The product we use with Keller Williams is called ChartMasters. ChartMasters puts together graphs that allow us to look at figures like the days on market, the supply and demand, and more.
If you’re a seller, your goal is to maximize your price and minimize your days on market. This means that if your property was among the 30.5% whose price was rejected (causing you to reduce the price at least once), your average days on market was 97 days. There were some homes in this group that were on the market for over a year, so the average changes.
If your home was priced correctly, then your home probably spent around eight days on the market, which was the average for homes that did not go through a price reduction (because they were properly priced).
That in mind, if your goal is to maximize your price and minimize your days on market, how soon should you try to figure out where you’re going to live next? Do you want to wait 12 times longer than the houses that were priced correctly? Probably not, but that was how much faster correctly priced homes sold compared to ones whose prices were rejected.
If you’re a buyer and you’re looking at homes that are moving quickly in the market, it’s very difficult to not have a multiple offer situation, especially for houses priced at or under $500,000. If priced correctly, homes in this range often sold for 100% of their list price. Many houses priced at or under $300,000 had multiple offers and sold above their list price.
It pays to work with a real estate agent who understands the statistics, even if you don’t. We on the Sells Strong Team love math, so we can help make sense of the market numbers for you. Just give us a shout, and we’ll be glad to help you navigate the market using our knowledge and expertise.