How long does it take to sell a house?
Selling a house can be a long and arduous process. Many factors come into play when trying to sell a home, such as location, days on the market, price, and property condition.
A quick and short answer to the question of how long it takes to sell a house is that it depends. The United States housing market has seen drastic changes in recent years.
You’ll be hard-pressed to find one definitive answer regarding selling a house. We’ll let you in on a little secret, though: the answer is primarily the key factors we list below.
Read on to find out!
What factors influence how long it takes to sell a house?
Today’s market can be described as volatile, uncertain, complex, and ambiguous.
The days on the market number property is listed for sale until it goes under contract-has increased by over 30 percent in the past year.
So what does this mean for you if you’re trying to sell your house?
1. The Market Condition
We all know that the real estate industry is cyclical. It goes up and comes down, but we are in what’s called a “buyer’s market.” This simply means that there are more houses for sale than buyers are looking to purchase.
Real estate professionals are seeing more buyers than they have in months, but those buyers are being very choosy and picky about what they want to buy.
Slow home sales, declining values, and an overabundance of available properties are the barometer by which most homeowners measure whether now is a good time to sell or not. The kind of market dictates the terms of the sale. It’s a given that in a down market it will take longer to sell, all else being equal.
Seller’s market, on the other hand, is when there’s more demand than there is available properties. Multiple offers are common in this type of market, and homes can go pending very quickly.
The current state of the real estate industry has been a roller coaster ride over the past few years, its imperative understands the state of the market to determine the average time a house sells or how to negotiate the best possible deal.
Keep in mind that home selling process is unique to each situation. You may find that your home sells much faster or slower than the average, depending on the market conditions and your own personal circumstances.
2. Location is Key
When it comes to selling a home, location is everything. Homes in desirable locations will usually sell more quickly than those in less desirable areas. This is because buyers are willing to pay more for a conveniently located home with scenic views.
Furthermore, homes in good locations tend to appreciate in value at a faster rate than those in less desirable areas.
The location drives the market value and the market value dictates how long it takes to sell. If you live in an area where there are more buyers than sellers, your home will likely sell faster than if you live in an area with more sellers than buyers. Local market conditions should be one of your primary considerations when trying to sell your home.
It’s not just the house’s location that matters but also the surrounding neighborhood. A home in a well-maintained, safe community will usually sell faster than a home in a less desirable area. This is because buyers are often willing to pay more for a home that is located in a desirable neighborhood.
Crime rates, school district ratings, and the overall condition of the neighborhood are all factors that can affect how quickly a home sells. It’s a fact that was selling a house that nests on an undesirable community languishes on the market while its counterpart in a better location will have offers flying in. An experienced real estate agent will be able to provide you with more information about the local market conditions, fair market value, and the best way to market your home.
3. The Condition of the Home
The home’s condition is another essential factor affecting how quickly it sells. Buyers are often willing to pay more for a home in good condition that doesn’t need major repairs or updates. If your home requires significant repairs or updating, it could take longer to sell.
If you’re selling an older home, buyers may also be more interested in a home that has been updated with modern amenities. Older homes that haven’t been updated can be a harder sell, as buyers may perceive them as outdated or needing more work than they’re willing to put in.
Koki Adasi, a seasoned and qualified real estate agent, offered this buying perspective:
“The house you looked at today and wanted to think about until tomorrow may be the same house someone looked at yesterday and will buy today.”
Take note of the operative word “look” in that sentence.
Real estate agents must stage the house to ensure it’s presentable before any buyers “look” at it. Selling is all about tapping the emotion of the buyer so they can picture themselves living in the house. Its not just another real estate transaction, its your home that’s on the line.
Home sellers must remember that there is a lot of competition in the market, and if their house isn’t up to par, it will be hard to sell. Prep the house before a potential client goes on a home inspection by decluttering, deep cleaning, and making any necessary repairs.
It is simple, sell a house in great shape and you will sell quickly. Sell a home that is in the not-so-great form… well, it could take longer to sell!
4. The Right Price
As any experienced real estate agent will tell you, pricing your home is a delicate balancing act. If you price your home too high, it will sit on the market for months without attracting any interest.
However, if you price your home too low, you’ll leave money on the table. So how do you find the right asking price? The best way to start is by looking at comparable properties in your area that have recently sold.
This will give you a good sense of what similar homes are selling for and help you to choose a fair asking price for your own home. Of course, you’ll also want to factor in the condition of your home and any unique features it may have. Once you’ve done your research, you should have a good idea of what your home is worth and be able to set a competitive asking price that will help it sell quickly.
Understanding how to leverage listing prices, what potential buyers are looking for, and the other factors that play a role in selling a house will help you sell your home faster and for the best possible price.
Many home buyers are looking for a home and are tired of losing out on bidding wars! Setting the right price is vital as a seller or listing agent!
5. Days on the Market (DOM)
Similar to pricing, the number of days your home spends on the market can also be a critical factor in how quickly it sells.
According to the National Association of Realtors, DOM (days on the market) is the number of days between when a house is put up for sale and when the seller accepts an offer from a buyer.
Let’s say someone hops on Zillow and notices that a house has been on the market for quite some time. They may ask themselves:
- Is this home a higher asking price?
- Is there something wrong with this house?
- Was it a rental or does it have a significant issue (roof, deck issues, need professional cleaning or painting, leaks)?
- Is this an investment property?
Sometimes the days listed can hurt the home selling timeline and process!
6. Market Value
A pre-listing inspection and a professional real estate agent goes a long way regarding your listing price. The power of these two teams should allow you to put your home on the market within the right market value range.
Overpricing your home could be detrimental and result in a longer listing time, something that can also factor the selling timeline. NOT all agents are transparent about pricing.
Here at Robin Hickman Realty, we pride ourselves on always letting our buyers and sellers understand fair market value and listing prices!
How does this metric affect how quickly your home sells?
A low average DOM implies that the market is healthy, with sellers being favored. A high average DOM predicts a weak market tending to favor purchasers.
In layman’s terms, this means that potential buyers may begin to wonder what’s wrong with your home spending a long time on the market. On the other hand, if your home sells quickly, buyers will be more likely to believe they’re getting a good deal.
A home’s value is highest when it first enters the market. Buyer interest falls after a few weeks as people interested in your home purchase other homes. If all current buyers have seen your house, you’re only left with those new market buyers– which significantly reduces your potential customer base.
Final Thoughts
With the pandemic disrupting so many aspects of our lives, it’s no surprise that the real estate market has also been impacted. Despite these challenges, many buyers are still out there looking for their perfect home.
Rising interest rates have certainly slowed down the market. However, the lack of inventory has made it challenging for homeowners to find homes. This is especially true in booming areas like Charlotte, NC!
So if you’re ready to put your house on the market, don’t wait! Get started today; you could be moving into your new home before you know it.
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