What is the difference between houses that sold in the first 30 days and those that took at least 180 days to sell?
Houses that Sold within 30 Days
I looked at houses in Oldham County over the past 6 months that went under contract within the first 30 days of being listed. I was curious about the list price to sell price ratio. The homes that sold within the first 30 days ended up closing, on average within 1% of what the home was listed for, pretty impressive. Even more impressive, 44% of the homes closed at or above list price. Lack of inventory and competition for houses has benefited sellers in the current market.
Houses That took 6 months or Longer to Sell
Turns out the homes that took at least 6 months to sell had initial list prices on average 6% higher than the final sales price. So a home that sold for $350,000 would have been listed in the $370’s or a home listed at $425,000 would end up closing closer to $400,000.
If you are not motivated to sell and have time to wait, pricing your home above market may be your strategy. But if you need to sell a little faster you may want to consider going a different direction than pricing too far above the market.
How Pricing above Market Impacts Your Home
You may miss the potential buyers who would be interested in your home.
The majority if not all home searches start online. Buyers go to Zillow and put in their criteria, they put in a minimum and max price. They may stretch a little and set their search a little higher than their top price, but not too much higher. If you are price 6%-10% above market hoping someone will come in and negotiate down, your house isn’t even showing up on their radar since it doesn’t meet the search parameters they have set up.
So, based on these numbers, if you want to sell quickly in this market, it is going to benefit you to seriously look at the comps, size up where you fall within the value range for similar homes and not price yourself outside the estimated value range.
If you want to find out an estimated value range of your home, go to Oldham Home Value, put in your address and either provide an email the report can be sent to or I will drop it in the mail.