Understanding "Days on Market" in Real Estate
DAYS ON MARKET
The average days on market is one of the most important indicators on the real estate market. It’s the amount of time needed to sell a specific property, which includes everything from the moment of listing the property to the moment when the agreement between the seller and buyer is signed.
Currently, the average days on market is 60 days, which means that it takes around 2 months for properties to sell. In comparison, it took around 49 days back in 2014, which is a representation of how fast-paced our real estate market is.
As a result of the complexity, merely half of the listed properties on the market manage to find a buyer, while many others are found selling their house for a significantly lower price than its worth. So, why is that happening? To be able to solve this puzzle, we must put ourselves in the shoes of both the seller and the buyer.
Short days on market
- Seller - If your property is sold in let’s say a few days, you’ll be found in a situation where you might start beginning to doubt yourself. You might think that you’ve sold your house for a lower price than you should’ve and with it, lost a significant portion of your potential profit.
- Buyer – When you find the property you love, you begin to fear other buyers. This fear causes you to offer a higher price to secure your purchase, which might prove to be too rushed. You might overpay the property or miss other, more affordable offers.
Long days on market
- Seller’s viewpoint – When you’re selling, you might think that the time on market indicator doesn’t have a significant impact on the selling potential and the price of your property. But, you might be wrong there. In many situations, the time on market is one of the reasons a property was sold for a lower price.
- Buyer’s viewpoint – Not rarely do buyers have doubts about a certain property if it’s been around on the market for too long. They might think there’s something bad about it since no one has bought it for so long, so even if they like it, they won’t make an offer, or make one lower than the real value.
- So, how can you work towards avoiding these situations? This is where we step in. Working with an expert that can guide you through the process of selling can significantly improve your chances of getting the right price for any type of property. We at HACK & CO have highly professional experts that can do the needed analysis on the market and estimate both the days on market as well as the price of the property.
For any questions or inquiries, you can book a strategy session anytime, and we’ll be glad to help.