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How long will my house stay on the market?

April 28, 2011 2 comments

          One aspect of selling houses that makes sellers and agents worry about is the time their house stays on the market. Most people start to get nervous after their house sits on the market a couple weeks, and adds stress to the owners and pressure on the agent. Here are 5 factors that determine how long your house may sit on the market.

Here are the top 5 aspects that affect how long it takes your house to sell:

1: Condition of the house – Has your house been renovated and updated? Does it need painted, new carpet, new roof? What about the kitchen? If the stove is older than you, it needs replaced. Houses with updated features will sell much quicker.

2. Price listed – Is your price too high? Your real estate agent / broker should help you out on pricing your house using a BPO, or CMA. A BPO is a ‘broker price opinion’ and a CMA is a ‘competitive market analysis’. Both of which determine the condition of your house and what the other comparable houses in your neighborhood are selling for. If it’s priced too high, some buyers may not bother negotiating with you, assuming you won’t take their low offer (remember, even a low offer is better than no offer).*

3. Market conditions – The economic and market conditions will determine whether its a buyers market or a sellers market. This also determines who holds most of the negotiating power, among other things**. The market is currently a buyers market, because there is a surplus of houses for sale and so many distressed properties and foreclosures, buyers are able to pick and choose, thus creating more competition, and lowering the sellers price. Unlike condition and price, you can not change the market.

4. Season – Is it any wonder why more houses sell in the summer? People enjoy the warmer months and take advantage of more open houses in the spring and summer. While some people can’t control when they sell their house (job relocation, natural disaster…), it’s best if you can wait to list your house during the summer.

5. Neighborhood – Your neighborhood is a huge factor determining how much your house will sell for. Your neighborhood will either enhance your houses price, or hurt it. It doesn’t matter if you have a mansion, if its located in the middle of apartments and lower income properties, the price for the mansion will be greatly effected. The biggest reason your neighborhood effects your price is because of BPO’s and CMA’s, remember those? Brokers and agents look to see what sold in your neighborhood so they can decide how much to price your house.

                                                

If you, or anyone you know need help selling your house, or are looking for a house in Kansas or Missouri, then I can help! Contact me to find out if I can help you out.

*I will cover negotiating power in the next post.
**I will also cover buyers markets and sellers markets in the post after that.
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