THE ROBB(ins) REPORT
Monday, June 29th, 2009 by Ruscha RobbinsHello,
I recently offered to find out the answers to the following questions that came up on the topic of Effectively pricing properties in this market.
The questions were:
Of all the properties that go on the market (through MLS),
what % go pending in the first week?
And,
Of those, what percentage of asking price did they sell for?
So I got busy and decided to look at the whole ‘Honeymoon’ period for listings (1-21 days).
This is the period of highest interest and activity (showings, etc) – after 21 days if there have been no offers the showing dramatically decrease and interest wanes, until a price reduction but by then you are on the slippery slope of chasing the market down.
Here is what I found out about those all important first 21 days:
Area covered: Carpinteria to Goleta North
Types of listings: Home/estate./PUD/Condo:
Time period: 01/01/09 – 6/12/09
There were a total of 325 listing that closed between 1/1/09 and 6/12/09.
And, of those 325, 129 went pending within 21 days – here is the breakdown by weeks:
1-7 days = 53 (41%) highest amount
8-14 days = 47 (37%) lesser amount
15-21 days = 29 (22%) lowest amount
Regarding the 53 in the 1-7 day category:
12 sold for asking price exactly
15 sold for over asking price
26 sold for less than asking
The average price the 53 sold for was 97% of asking
*interestingly though, only one property priced at over $1m went out at over asking ($1,050,000 asking, sold for $1,060,000). The average price of the homes that sold for over asking price was $516,850.
The 47 in the 8-14 day category:
Sold for asking price = 12
Sold for over asking = 13
Sold for less than asking = 22
Average price the 47 sold for was 96% of asking
The 29 in the 15-21 day category:
Sold for asking = 1
Sold for over asking = 1
Sold for less than asking = 27
Average price the 29 sold for was 93% of asking
So, the effect of pricing the listing correctly is of huge value to the end result. To find that magic number that leaves Buyers saying, I want that property, and I want it now rather than, it is really nice, let me wait until they do a price reduction is a science, a matter of extensive market research and knowing the market and what is and is not selling. Here is where we Realtors really shine because it is our business to know these facts so that you pin point the right asking price that will bring in the best offers.
Going beyond the Honeymoon Period, Or: What sold? What didn’t? The ugly truth…
The number of listings as of 1/1/09 to 6/12/09 that are still:
Active, or were Canceled/Deleted/Expired/Withdrawn (i.e.: not sold, and not pending but had been available) = 862
Taking the 862 that are not sold vs. the 325 that did sell (in the 21 day period), means that only 27% on the inventory actually sold – or put another way:
73% of the inventory did not sell (yet) and are not pending (yet), or they gave up and withered on the vine. Which batch do you want your property to be in?
It would be a pleasure to answer any questions, and to update these results, to fine tune and customize them, and present my findings so that you will know that you will get the best results when you go on the market. Please call or email me anytime.
All the best, Ruscha Robbins
