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I just came out of a really cool meeting with the team and we were throwing different ideas around about pricing a home aggressively to sell quickly and for the most amount of money in this market.
A really neat stat that we figured out that I want to share with you is that homes being sold inside the first 30 days of being listed (which is becoming more common) are garnering over 99% of their asking price. When it comes to negotiation, sellers are in the driver’s seat. It’s a seller’s market, and a home selling in the first 30 days - if it’s new and fresh - is going to sell for full price, and maybe more.
How does that contrast to a home on the opposite end of the spectrum? What we’ve found is that homes either sell in the first 30 days or after 90 days. The reason for this is that it typically takes the seller 90 days to agree to a price reduction. I’ve looked at all the sales that have happened in the last couple months for homes that lasted 90+ days on market and found that these negotiations had a much different story to tell. Namely, people whose homes sat on the market for that period or longer got only 95.9% of their list price. That’s not 95.9% of the price they started at, but rather the reduced price that they got.
The reason for this difference is the negotiation position the seller had when they started. Even though they reduced the price, they’re still an old listing. This gives the buyer an element of control. Isn’t that interesting? Price the home properly, and you net an additional 3%. With average home prices now close to $600,000, just that difference in coming out strong versus have a pie-in-the-sky number can save you $20,000 in the negotiations
