How Days on Market Impacts Your Listing

I recently had a client ask a question about total days on market and I think a lot of you currently trying to sell a property (or considering listing in the near future) could benefit from the answer. So, here is the question;

“How does total days on market impact the sale of my listing”

This is a part of the pricing and marketing strategy that is often times overlooked by sellers in regards to its importance but in all honesty, in a market that is moving as fast as ours is in Atlanta, it is a critical factor to consider.

In Atlanta, much like many other large cities across the country, we are experiencing a lack of inventory that is driving overall buyer demand. When this demand is paired with favorable interest rates it creates a frenzy of buyer activity which means quality properties that are priced accurately and marketed effectively sell FAST. In the current environment it is not uncommon for a great home in a popular neighborhood to have multiple offers within 48 hours of listing creating highest and best offer scenarios. Sellers have taken notice of this kind of activity and they have been pushing the envelope more and more with the price that they think their home can trade for all the while keeping the expectation that homes are supposed to sell the same hour they are listed.

Lets talk about some realities quickly. The most important part of your listing period is the first two weeks that the home hits the market. This is when agents will learn of the listing and this is also when the most qualified and motivated buyers will see the property. They have already been looking and striking out with what has already been on the market so they are excited about your listing as this could finally “be the one”. Do NOT underestimate the power of these first two weeks.

Now, here is the trouble that this lighting fast market has created; if your home sits for more than 30 days without an offer it is assumed that there is either, 1). something wrong with the property or the neighborhood or, 2). It is priced way wrong and any offer that comes in is going to be a low ball offer or, 3). all of the above. The stigma that is then attached to the home is very difficult to shake and you spend the rest of your time “chasing the market” which means you the seller lose all of your negotiating power/leverage.

So, a higher days on market count is going to result in low showing activity (or no showing activity), a negative stigma, low ball offers (or potentially no offers) and a lot of headaches and chasing buyers. This means it is not in your best interest to try and set an unreasonably high price to see if anyone will “bite”; the only thing that happens here is that you end up selling for less than market value because you will spend 6 months chasing buyers with price reductions creating a negative perception of the property.

How do you achieve the perfect combination of pricing/marketing so that your property sells quickly and for the highest value possible? Study the market and have an objective competitive market analysis created for you. We know your neighbors home sold for $525k but that doesnt mean you can sell yours for $650k because you think your back-splash tile is prettier. What you can do is study recently sold properties (only look at six months of history in order to keep in line with appraiser guidelines) with similar square footage, beds/baths, amenities, location and then factor in upgrades such as the stone used for counter tops, additional half baths, home automation technology additions etc…This will allow you to arrive at a price range that you can reasonably expect to sell for.

The next step is to create your marketing strategy and positioning plan. I could (and will) write an entire piece on this process alone but let me say this; an ad in the local paper and balloons in the front yard doesn't cut it anymore. You need HIGH exposure on the web, you need social media traction, you need deeply rooted relationships with the broker community, and you need placement in multiple different forms/platforms of media which is achievable through the partnerships that your agent holds with media companies. A streamlined, sophisticated and efficient marketing plan is what gets you top dollar in the quickest time frame possible.

High days on market=Negative Stigma=Low to no showing activity=Low final sales price