You’re ready to list your home – but you aren’t sure how long it’s going to be on the market, which makes planning very difficult. So how do you determine how long it will take to sell? Step one is to take a look at other recently sold homes in your area that are comparable to yours. Be sure to consider your home’s location, features and price. See how many days those homes were on the market before they sold and come up with an average to get a ballpark idea of how long it might take. That number is a good starting off point, but there are a number of additional factors you need to consider when you estimate how fast your home will sell.
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Neighborhood Desirability:
If your home is close to local attractions or is in a great family neighborhood, it will have more appeal than a similar house that’s near a busy freeway or in a less sought after part of town. More appeal means more interested buyers – increasing the odds of a faster sale.
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Availability of Financing:
Most buyers rely on financial assistance to purchase a property, which means they have to qualify and be pre-approved for a home loan before they can start putting down offers. If financing is hard to obtain, there will be less buyers on the market and houses will move at a slower rate. If rates are great, more buyers will be competing for properties and homes will sell faster. Research the current real estate finance market to determine how it will impact your home sale.
- If you live in an area with seasons, your market most likely slows down around the holidays and in the winter months. On the flip side, it traditionally picks up in the summer months when kids are out of school. Study local seasonal trends and keep these things in mind while deciding when to list your property.
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Property Condition:
Not surprisingly, a new, modern or well kept home will often sell faster than an older property that needs a lot of TLC. In addition to considering the overall state of the home, it’s also important to consider the newness of major appliances, flooring and hardware fixtures. Any features that can save buyers money in the long run can add to the overall appeal of your property, making it more likely to sell faster.
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Home Value:
Your home’s value is determined by a real estate appraiser, tasked with the project of assigning a true value to the property in an effort to make sure your buyer’s lender is getting a good deal with the loan. If there’s a mismatch between the list price and the appraiser’s value during escrow, it can slow down the sale – increasing the length of time your home is on the market.
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Market Inventory:
When there are tons of housing options available to choose from, it can take longer to sell. When inventory is tight, it can create competition amongst buyers, making it more likely for homes to move quickly.
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Real Estate Market Health & Trends:
Understanding both your local and the national real estate market is critical in determining how long it will take to sell your property. Do your homework to determine how the state of the market will impact your sale.
Although this list is comprehensive, it’s not exhaustive. Many of these factors work in conjunction with one and other to impact time on market averages. Other factors, like the amount of marketing you do to promote your listing, will also have an impact.
While there’s no concrete way to determine exactly how long it will take to sell your home, by evaluating recently sold home data and considering the eight factors outlined above, you can develop a “days on market” range that will serve as a great planning tool throughout your selling process.