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Friday, January 16th, 2009 at 10:46 AM

Attention Home Sellers

Thanks to Dwip, here is the Carlsbad December sales charted based on the length of time on the market, and the amount of discount from the original list price.. There is some variance, but the message is clear – the longer a home is on the market, the bigger the discount from the original list price.

Price it right, and get it done!

Posted on Friday, January 16th, 2009 at 10:46 AM in Thinking of Buying?, Thinking of Selling? | 7 Comments » | Print Print You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Reader Comments: 7 Responses

  1. Take out the 500 days outlier and the price loss slope would be much steeper.

    shadash | January 16th, 2009 at 11:18 am

  2. Isn’t that why smart realtors like jim tell you not to overprice your home when you list it?The Longer that puppy sits on the market the more it as seen as a problem child by buyers.

    arizonadude | January 16th, 2009 at 11:44 am

  3. I dont see this as anything other than logical. You put something, anything on the market and it sells if the price is right. If you price it wrong, it sells once you get the price right.

    Damian | January 16th, 2009 at 1:04 pm

  4. While it’s pretty clear what the graph REALLY means, the vertical axis is mislabeled. It should be “INCREASE from original list price”, where a negative number actually refers to a decrease.

    greenlander | January 16th, 2009 at 2:51 pm

  5. Nice work Dwip.

    Stephen Waits | January 16th, 2009 at 3:07 pm

  6. This could mean that the original list price was too high. They may have ended up selling at the “right” price, which may have been no less than if they had initially listed at the right price. It does NOT mean that the sellers got any less for the house (e.g., they may not have suffered any penalty, other than time, from overpricing). Of course, we know that time = bad when prices are falling…

    Aztec | January 16th, 2009 at 6:19 pm

  7. Well to be fair, in a declining market you’re going to tend to sell less the longer you wait by definition. But on the other hand, every month you don’t sell is another month of mortgage payments. In some cases, the loss is higher than even the discount suggests.

    In practice, houses priced well tend to also get strong interest and competition. Of course, it’s always easy to price a good house well compared to a weak house.

    BDiego | January 18th, 2009 at 2:09 am

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