Originally Posted by Bill_E
I'd be interested if the "time on the market" isn't just another realtor scam. We've got our old house to put on the market and are having the same discussion.
It's not. My last realtor when I sold a house and bought another was the daughter of a university economics professor. She treated real estate with the analytical eye of economist and her general strategy, tactics, and overall advice was always data driven. We talked about it a lot because I found it fascinating. She was really
smart, super successful, and very nice person to boot.
She showed me data that pretty well supported that the longer a house remains on the market, the number bids falls off at an accelerating rate, along with the size of the bids. Buyers assume that the house is not attractive against "comparables" in the same market, either on features or price
. Or they assume that there is something wrong with it. If it's such a great house, then why is it still available? The exception is if you have a highly unusual house (indoor pool, greenhouse, horse barn, etc.) that requires a very particular buyer. In that situation you have to keep the house on the market and just pray the right buyer comes along.
My realtor pretty well proved to me with her data that if you time putting your house on the market properly and price it strategically, you'll do better in terms of the final contract
It does not make sense that realtors are just interested in the quick sale
and are willing to leave money
on the table. All the work comes up front in terms of putting together the listing and then on the back end around negotiations and the closing. There's not a lot of work for them to do in the middle while the house is sitting on the market. If you could get more money for your house by letting it sit there, for sale
, your realtor would be the first one to recommend it.
Bill, a year ago prices and interest rates were rising. Your realtor gave you their best advice, short of having a crystal ball. Of course you may have had other valid reasons not to trust them entirely, and so that advice rings hollow today.
Regarding timing, every market is different based on demographics, the local economy, etc. In general, buying
families want to have a contract
in hand by the end of April so they can close on the house before their kids
are out of school
and then move and settle in over the summer before school
starts. My last two houses were close in to Washington DC
and the market was a little more opened ended due to political and international families coming and going throughout the year, so you could reasonably list your house during another season and not be entirely SOL.