It’s never been so important for home sellers to be bold and decisive when selling their house. Buyers are waiting patiently for new listings, and they will immediately jump at anything that looks great and is priced attractively – take advantage!

There have been 155 NSDCC listings that went pending this year that have already closed escrow. Their median is 19 days on market!

For a relatively higher-end market, it’s impressive that buyers react that quickly and it blows a hole in the idea that higher-end markets take longer to sell. For the same time period last year, the median was the same – 19 days on market!

Look at the difference – MOST of the homes (63%) found a buyer in the first 19 days, and they are getting all the money too:

Those sellers who insist on fighting the trend can look forward to a discount.

Here are the 58 homes that took 20+ days to find their buyer. Not only do they NOT know how much of a discount is coming, but the 20+ days could be months…and months:

Once a home is for sale but not selling, how do you know what to do?

Both buyers and sellers can apply my List-Price Accuracy Gauge:

Once the home is on the open market, if it is having….

• Showings and offers, you are within 5% of being right on price.
• Showings but no offers, you are 5% to 10% wrong on price.
• No showings, then you are more than 10% wrong on price.

It’s nothing personal, it’s just a simple guide to know how close the price is to being right.

The serious buyers rush out the first week to take a look, but after that it’s crickets, with only an occasional visitor. It is tough for sellers to cope, or make adjustments. But once the initial urgency has run out, you have to do something – don’t just sit there.

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How quickly should sellers make adjustments? The DOM clock is ticking!

0-14 days on market – Hot property, and when the sellers have their maximum negotiating power.

14-30 days on market – Buyers get suspicious, want to pay under list.

30+ days on market – Buyers will be expecting deep discounts, or ignore it altogether.

After being unsold for two weeks, sellers will suspect that something is wrong. But it is natural to resist changing the price and instead blame everything else – especially the listing agent.

Sellers, and agents, need to shake that off and act quickly to keep the urgency higher. The first price reduction should be for at least 5% and happen in the first 15-30 days for maximum effectiveness. If the home doesn’t sell in the next two weeks, then another 5% is in order, and by then the fluff is eliminated.

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Where do sellers go wrong?  They don’t properly price in the negatives.

Typically sellers just pick apart the comps to convince themselves why their home is the best around, and then settle on a list price that will show everyone who’s the boss.  If you don’t have any negatives, then you probably will get your price!  But typically sellers are forced to come to grips with the negatives of their house, and adjust accordingly.

Do sellers have to lower their price? No, not neccesarily.

There are other alternatives:

1. Make your house easier to show.  Listing agents who insist on buyers jumping several hurdles just to see the home aren’t realistic about today’s market conditions. Make the home easy to see!

2. Fix the problems.  New carpet and paint is the best thing you can do: 1) it looks clean, 2) it smells new, 3) you have to clean out your house to install it, and 4) you are managing a business transaction now – it is the logical solution.  Utilize staging too.

3. Improve the internet presence. Have at least a 12-25 hi-res photos plus a simple youtube tour.

4. Wait for the market to catch up.  If unsold for 60+ days, cancel and try again later – probably next year.

5. Reset the Days-on-Market stat.  As long as the MLS allows agents to refresh their listings, then it’s in the best interest of the seller to reset the DOM.  It is a gimmick, and instead sellers should concentrate on creating real value for buyers – that’s what will cause them to pay more.

The longer it takes to sell, the more discount the buyers will be expecting – usually about a 1% off for each week on the market.  When other homes are flying off the market, the buyers’ obvious conclusion is that your price is wrong, and they load up the lowball offers.

Even if you complete one or all of the five ideas above, don’t be surprised if you need to lower the price too. Keep it attractive!