When real estate agents talk about selling a property, they focus on a metric known as days on the market (DOM). This is the length of time between when a home is listed and when it sells, and while every property is different, there are a number of factors that can help predict this figure.
If you’re currently preparing to sell your home, it’s important to consider these 5 major elements before hanging your “for sale” sign. Though other factors may intervene, you have more control than you may think.
Unsurprisingly, property price plays an important role in how quickly your home sells. Overpriced homes are much more likely to sit unsold than homes listed at a reasonable price or below market value. You can get a better sense of what an appropriate price for your home is by taking professional assessments and comparing them to the prices of other recently sold homes in your neighborhood. Just be sure to factor in other distinguishing features like necessary repairs, square footage, and amenities.
Agent Or No Agent
Typically, homes sold by agents sell more quickly than those sold by owner. That’s because agents have more resources for marketing properties, and know how to stage and style homes to make them appealing. There are, however, some exceptions to this rule. For example, if you sell directly to a cash buying company, you can sell your home in days with no agent involved.
Time Of Year
Certain seasons are better for selling a home than others, but one trend is particularly notable: the bulk of home sales happen between May and August. That’s because families move between school years, allowing their children to finish the year in one location and start the year at a new school when changing districts. In particular, home sales peak in June, but are at their lowest in October and December.
Most homes take between two and three months to sell, but one factor that can significantly impact this number is the area inventory – how many homes are on the market, as well as local demand. If there’s a lot of demand for homes in your area, which is common in good school districts, then your home may sell much more quickly than that. On the other hand, if you live in a neighborhood with low to average demand but a lot of homes for sale, it could take a while for your home to catch a buyer’s eye.
While house flippers may grab an inexpensive home, even if it’s not in very good condition, typically, homes in great shape sell more quickly than those that need extensive repairs. Though it’s not generally wise to pour too much money into excessive upgrades since you’re unlikely to make back the costs, taking care of any unsightly issues like chipping paint, or functional problems like a leaky roof, will help move the property.
Though some homes will sit unsold for long periods of time simply because of bad luck or accidents of timing, the seller has more control over how quickly their home sells than most think. It’s not just about demand, but rather takes into account methods of sale, property quality, and seasonality, among other factors. When you know what factors to consider as you plan, you’re more likely to succeed at selling your home quickly.