One day on the market is best.
A lot of sellers feel like if their house sells immediately that their realtor under priced the house. Some of them feel like realtors shouldn’t make that much money when a house sells fast.
Here is the truth from 14 years experience: 1) A house will always sell for market value. If it was under priced, buyers will bid over the list price. 2) The effort between selling a house the first day on the market or it taking 6 months is not that different. Being the listing realtor is a lot like fishing. You bait a hook with your marketing and cast it in the pool of buyers. Then you wait for one to bite.
Enough about the realtor perspective, how about why this is somehow great for the seller?
Statistics tell the story.
A seller is much much much more likely to get their full asking price when it is a new listing.
When a house hits the market, every buyer in that price range comes out to see it. They often see other buyers leaving the house before they see it and/or have other buyers waiting to see it when they leave. Buyers know that they need to act fast if they want the house. They know that other buyers may want it too so they better put out their best offer first. There is a sense of urgency.
If it sells, it will most likely sell for the full list price.
Once all the buyers currently in the market have seen it, a seller will only get showings as new buyers emerge into the market. There is no frenzy. No buyer is afraid of losing the house so they want to see how low they can get the seller to go.
A phenomenon that has been happening since buyers have been able to set up their own saved searches on Zillow is that buyers seem to look at a house online only once when it is a new listing. Few buyers these days will comb through rejected listings. They opt to just wait for new listings to come on the market…..which means a house that did not sell quickly is unlikely to ever have a buyer reconsider viewing the house. It is like it doesn’t even exist to them.
So, how many days on the market are best for the seller?
One day on the market is best.
I say hype.
I think it is more about winning listings than getting top dollar for the house. It’s something you tell a seller in a listing presentation to make them pick you over another realtor, who isn’t going to sort of put your house on the market but not let anybody see it for up to a week.
The thought is that during the time between posting that the listing is coming soon and when it is available to show, you will be building a frenzy of buyers who will all see it the first day on the market and it will sell in multiple offers for top dollar.
Sounds good, right?
Well, that is already happening with just about every house that is appropriately priced.
In a hot market where there are more buyers than sellers, the “Coming Soon” approach is sort of like telling a bunch of piranhas that you are going to throw raw meet at them next week……whether you throw it now or later, the results are the same.
I think the “Coming soon” thing would work best in a slow market when you need to create a buzz around a listing to make it stand out.
I don’t really know how to say this without upsetting some of my realtor friends, but most of the current marketing trends are just hype.
Many agents are doing weekday open houses. Like a Tuesday or Thursday from 5-7. Often the house sells before the open house……and if the listing had hit the market that day, that is the exact time buyers would be scheduling their showing anyway.
Many agents are doing these “Coming Soon” listings. After making everybody wait to see it, the house sells the first day on the market for full price. Imagine that. Just like every other new listing that is priced appropriately.
Some say that these are the best ways to expose the listing to a market that is already hungry for new listings, and at a time when there is a shortage of houses for sale.
Here is what I say is the absolute positively BEST way to know you got top dollar:
You put the house on the market late on a Friday. Why? So the listing gets fed to zillow and all the other real estate sites in enough time to get on every buyer’s radar but is too late to be shown that night. Why again? Because more people are available to look at a house on the weekend than they are during the week. Why do you want that? Because you want every buyer to not only see your house, but to also see every other buyer flocking to your house. Nothing motivates a buyer more than seeing people coming and going during their viewing.
You show the house all weekend.
And this is where the rubber meets the road. You tell all the agents that the seller is not making a decision until Sunday evening and to submit their client’s highest and best offer. That gives time for the house to be seen by every interested buyer. More interested buyers means more offers. More offers means a better price and/or terms.