The answer to this questions is, YES! I say this for 3 reasons:
1. The National Association of Realtors (NAR) statistics show that the number of days a home is on the market (DOM) effects the sales price. The longer a home is on the market for sale the less money the owner will get.
2. After being a Realtor for 20 years in can tell you for a FACT that this is true. I always tell sellers that they should not rush into a sell, but they need to sell with a sense of urgency.
3. It's just common sense. Would you want to pay full market value for a home that’s shopworn? You have to wonder what’s wrong with if it’s not selling. Right?
Hi everyone. This is your Tampa Bay Realtor Lance Mohr and in this video, I want to talk about sales price versus days in the market. In other words, how long is your home been on the market?
All right, I remember over 20 years ago when I first got in this business. I’ve always heard the longer a home sits on the market the less money the seller will get. So that truth or is it the myth? I’ll just get straight to the point. It’s the truth and there are three reasons why.
I say that the reason number one. Every single year since before I got into real estate the National Association of Realtors has been taking surveys in every single year. They state this so statistically, it’s just true. The longer a home stays on the market the less money a seller will actually get from the fair market value not from what they listed it for but for fair market value.
The second reason. I say this is just from being in the business so long, from working with so many buyers, so many sellers. This is absolutely true. I see it over and over again that’s why I tell every seller. You don’t want to rush into a sale but you have to sell with a sense of urgency. A lot of people say well I’m not really in a hurry to get my home sold but you don’t want it sitting on the market because when buyers come to your home and they see a home’s that’s normally selling in your neighborhood. From maybe one week to four weeks and all the sudden yours has been on for three months or four months. You’re not going to get as much money and this leads me to the third reason.
It’s just common sense. If you got out there and you look at homes and you’re a buyer, you like a home and it’s been on the market like two or three days there is probably isn’t much-negotiating room in it. I’m not saying there won’t be but chances are sellers tend to think and you probably know this if you’re the seller. Well I just got an offer in three days I’m going to continue to get offers and it’s the same thing if it’s been on the market a week or two weeks it really depends what the markets like in your area and how fast homes are selling in that area. Sometimes I’ll go out and I’ll look at a $150,000 home in the area and they are selling within one or two or three weeks but then here’s a home that’s been on the market for 50 days and the buyers just say what’s wrong whit it? Why doesn’t anybody want it? They don’t understand the seller started off at $180,000 lowered it to 170 then 160 now it’s at the fair market value at 150 and this goes for any price range.
Now obviously the higher the price of the home the longer it’s generally going to take. You can’t say a home that you know it’s been on the market for at least in our market In Tampa if a $500,000 home has been on the market 30 days that isn’t a super long time for a $500,000 home even though the market is extremely tight and that higher price bracket but if I get a home in it’s a hundred and twenty thousand and it’s not under contract within a week in this market there’s something seriously wrong with it. So again at the end of the day and I tell all my sellers you’re the owner you’re the decision maker, it’s your home, it’s your price. You need to figure out what you need to do for you and your family but you have to sell with this sense of urgency because you have to understand the longer home sits on the market the less negotiating power you’re going to have and eventually it’s just going to get chopped born and you’re going to lower and lower and the lower the price.
So hopefully as I always say in my videos to sellers interview smart. Get an agent that knows what the heck they’re doing someone who’s going to tell you the truth, not just someone who tells you what you want to hear and someone who really understands the market. Who understands negotiation and has a phenomenally written marketing package. I hope this helps. If you know anybody looking at selling a home show this with them. I do these videos for you. I hope this helps. Have a wonderful day. Visit my YouTube channel for more educational real estate videos.