What Is “Days On Market?” Why Should You Care? How This Term Single-Handedly Affects the Sale Price Of Your Home

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Just How Important are the Days Your Home Stays on the Market?

Just about the very first question a buyer is going to ask their agent when they become interested in your house is how long it how long it has been on the real estate market. And for good reasons. Usually homes that have been on the market for a while have some sort of problem, whether minor or major. After all, you probably asked your realtor this same exact question when you bought your house.

The reason your potential buyer wants to know how long the home has been on the market is they trying to see which negotiation strategy to use on you, and if they have leverage at all. If a house has only been on the market a few days or a couple of weeks, the buyer will assume there won't be much room for negotiation and if they truly want the house and will be much more inclined to make a higher offer.

On the flip side, if your home has been sitting on the market for several months to a year, the buyer will use your 'days on market' to negotiate against you, creating a 'buyer advantage' in negotiations. The longer you are on the market, the lower your offers will be (if you even get any offers at all). Most buyers consider homes that have been on the market a long time will assume that something is wrong with them, since they are still available and haven't sold.

Many sellers who choose to 'try the market' at a higher price eventually sell for far less than they would have if they had only been correctly positioned in the market in the first place. Re-creating that interest from the market weeks and months later is almost impossible and most buyers will have forgotten about your home in just a few short weeks.

Your agent needs to be your on your side. This means that they need to be honest with you concerning the advocate - which means they need to be willing to be honest with you about the market value and market conditions, as you will be making major life decisions based on this information. Make sure your agent takes a consultant approach in their business, not a salesperson.

One thought on “What Is “Days On Market?” Why Should You Care? How This Term Single-Handedly Affects the Sale Price Of Your Home

  1. Margaret Jackson

    Think about it this way...when you browse on craigslist and see a sofa you really like..but you see it's been listed for 30 days..you wonder why no one wants it, and chances are, you scroll away and don't look at the listing again. This is for two reasons, and they are both psychological

    1. They assume there must be something wrong with it; and
    2. People want what they can't have. If its been sitting on the market for so long, it just doesn't have the "psychological kick" that new listings do.

    Reply

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