When my seller-clients call me to start the process of getting their home on the market, one of my first tasks is to do a CMA (Comparative Market Analysis) on the property. This thorough report will show us a range in prices in which the home is likely to sell. My seller-clients often ask me what price they should start out at. They frequently tell me that they feel they should start higher than what they think it will actually close for, because buyers are almost always going to come in with a low price. I tell them this isn’t necessarily true, that in *this market* homes that are priced well tend to sell full or above full price, but homes that are priced too high tend to sit on the market awhile, often selling for less. This post shows data to back up that advice.
The following is a list of ALL homes that have sold in Oregon City in the last thirty days. This is just a “snapshot” of one local Portland metro suburban market.
The left column, “Days on Market” shows how many days the home was on the market prior to going pending. The next column is the ML#, identifying which property was on the market. After that is what price the seller had started out at, and after that is the price the home sold. The column on the right shows the ratio of list to sell price.
Here’s a synopsis of the data:
-The homes are organized by how long they stayed on the market prior to getting a pending sale.
-There were 87 homes that closed in the Oregon City area in the last thirty days.
-The vast majority of these homes sold very quickly.
-I see trends in list/sell price ratios in homes that sold within ten days, ten to thirty days, thirty to 90 days, and homes above the 90 day mark:
Homes that sold within ten days:
-About half of the homes that closed in the last thirty days sold within ten days of hitting the market!
-Of the homes that sold within ten days, about half sold full-price, half sold more than full price, and only couple sold under full price.
Homes that sold within ten to thirty days:
-About 1/4 of the homes that closed within the last thirty days sold within 10-30 days of hitting the market.
-List/sale price ratios are about equally divided between homes that sold above, at, or below the asking price.
Homes that took 30-90 days to sell:
-About a dozen homes that closed within the last thirty days took 30-90 days to get an offer.
-These homes typically sold around 95% of the asking price.
Homes that took more than 90 days to sell:
-There were about 10 homes that needed 90 days or more to go pending.
-These homes tended to sell for about 90% of the sales price, unless they were new construction or a short sale, which take more time to get offers.
The take away message from all of this data:
This data clearly displays that buyers offers do not “always” come in below the asking price. In fact, many times they come in higher if the home has not been on the market long. And buyers DO pay attention to how long the home has been on the market, and will adjust their offering price accordingly. See tip #2 on this advice column on Trulia for more on why buyers adjust their prices this way.
Here is the raw data for you to review:
|Days on Market||ML #||List price||Sales Price||Ratio||note|
Please call or email me with any questions. I look forward to helping you!