Get More Money by Keeping “Days on Market” Low

Estimated reading time: 3 minutes

“Days on Market” is the number of days a property has been listed for sale. Why do so many websites and the MLS show this figure, and does it really matter? Whether you are a buyer or a seller, the days on market can have a profound impact on the offer price. Read on to learn more about how the number of days on the market affects a property’s perceived value.

When a newly listed property first hits the market, and if the price seems right, there will be a lot of interest and activity in the first days or weeks. However, the longer it languishes on the market without an acceptable offer, potential buyers begin to question why the house is still for sale and if there is something wrong with it. The longer the property is on the market, the more inclined a buyer is to offer less than the list price, no matter how suitable to the buyer’s preferences it may be.

In this sense, the property ages like fresh fruit on a supermarket shelf. There is a perfect time for maximum ripeness and price, but its appeal quickly drops over time. Knowing when that point is reached for the particular type of property is critical in pricing the home and making it available for showings.

It’s common sense. If you see two nearly identical properties, one that’s been on the market for only five days and the other for 95 days, a buyer will make a lower offer for the one for 95 days. In the buyer’s mind, the property value (and any resulting offer price) often decreases each day the property is on the market.

So how does a seller keep that from happening, and what is that magic time frame for maximum interest and potential offers? First and foremost, the initial list price should always be one that gets immediate attention and, hopefully, action from potential buyers. Proper price positioning is essential to entice showings leading to a sale. The number of showings in the first week will indicate if the price position is correct or if it needs adjusting to correspond to buyers’ perception of the home’s value. If it’s overpriced, there will be few showings or offers – maybe none. 

If it is priced at or just below an expected price based on recent sales (Action Priced), it will have a greater perception of value, resulting in multiple showings, often leading to multiple offers with buyers competing for it by making their best offers. That’s why properly priced properties usually sell at the original listing price in the first days of exposure to the market.

Beyond an appropriate price, the property needs to be staged with a neutral palette of colors on the interior walls, minimal personal items, curb appeal, properly maintained landscaping, and a number of other attributes that all contribute to perceived value.

I would be happy to discuss with you the best strategy for pricing your home and making it as appealing as possible so that you capture the most interest in the least amount of time. When you are ready to put your home on the market, please let me know!