Home selling success can be achieved by reaching any number of goals, but the goals most home sellers put at the top of their list are highest possible sale price and a quick sale. Recent Silicon Valley home sales results confirm that higher sale prices and quick home sales go hand in hand.
Home Selling Success Is In The Sales Numbers
For example, 38 Palo Alto homes closed escrow in a recent month. 33 of those homes sold within 30 days. Of the 33, 31 sold above their asking price. Conversely, all 5 that sold in more than 30 days sold below their asking price. Similar sales numbers are common in many communities throughout the Bay Area.
Data from Silicon Valley home sales, East Bay home sales and Wine Country home sales produced a simple demand curve as pictured in the summary graph below. Under moderate to strong market conditions, demand – as measured by purchase offers equal to or higher than the asking price – remains high and relatively steady during the first 30 days that a property is on the market. Demand dips significantly after 30 days, even more so after 90 days.
Quick Home Sales Action Items
Here are a few simple things sellers can do before placing their property on the market to maximize the potential for quick home sales success:
- Conduct a thorough market analysis to establish current market value
- Have all applicable documentation on hand, such as deeds, mortgage notes, building plans and permits, easements, utility bills, tax bills, and CC&R’s
- If the property is occupied by tenants whose furnishings or standard of housekeeping detract from the value or viewing potential of the property, put the property on the market after the tenants have vacated
- Complete all inspections, repairs, upgrades, cleaning and staging
- Allow sufficient time for preparation and distribution of marketing materials
- Maximize buyer viewing opportunities by pre-planning frequent open houses and convenient lock box hours
- Use “coming soon” advertising
Putting an unprepared property on the market will often “burn through” prime buyers – those who are actively and aggressively looking to buy in the short term. If the property gives a bad first impression or viewing times are inconvenient, many buyers will submit lowball offers or simply move on to other properties.
Some sellers put their property on the market with an asking price above market value and settle in for a longer sale period. They say they are willing to “hold out for their price” or “will wait for market conditions to bring values up to their price.” This strategy, more often than not, actually works against them. Agents and buyers who see that a property has been on the market for longer than 30 to 60 days will usually assume that it is priced too high or has defects of some kind. My advice to these sellers is usually to wait to put their property on the market until conditions actually do change. As stated above, a property that is prepared and priced for a quick sale will most often net the best possible price.
I hope you found this information regarding quick home sales success helpful. If you have any questions about real estate strategies or need help with a purchase or sale anywhere in the San Francisco Bay Area, drop me a line. Contact Us