I just wrote a blog article on my personal blog, House is not selling? Avoid Market Rot.
I ran an anlysis on Middlesex County Massachusetts the results were interesting:
The data pulled was for single family houses between 0- $1,000,000 for the past year.
Home on the market for 0-60 days- 6633 home sold for an average of 100% of the list price for a median sale price of $470,000. Out of those 6633 homes 1425 of them had price changes averaging 3.71%
Homes on the market for 60+ days- 3188 homes sold for 97% of the list price for a median sale price of $425,000. Out of those homes 3144 had price changes averaging 5.33%
During that same year 3237 homes expired unsold or withdrawn from the market. While some of the withdrawals may be for a variety of personal reasons, most are because the home owners are tired of trying to sell their home.
What does this data tell us?
Selling your home with-in the first 60 days of listing will net you more money!!
It all has to do with buyer perception. When a new home is first listed, your best buyers, the ones just waiting for the next new listing to come along, are excited. They have rejected all the others in the market place and have exhausted all their possibilities. They are the best buyers because they have been in the market place, they are educated on the market place and they have felt some pain. They are ready to step up to the plate.
So now these buyers have rejected your home. Your now stuck with the more casual buyer or the ones juste entering the market place. 60 days, 90 days, now they are thinking no rush people are stroming in to put in an offer. They can come back if they don't find someting better.
Then you reach the point where buyers are thinking if no one else wants this house, something must be wrong. If others don't want it I dont want it. You have now reached the point of market rot. Your house has stagnated.
Read the article to learn how to avoid market rot.
This article was written by Kevin Vitali your Massachusetts Realtor Thinking of buying or selling call Kevin.