Does the length of time a house is on the market affect its selling price? The Knock blog is leaning toward “yes.”
How did we arrive at this conclusion?
The Knock team pulled data on how long it’s taken Metro Atlanta homeowners to sell their houses this year: 59 days on average. In certain zip codes, it’s taken significantly less time – and in others, it’s taken considerably longer. So, we focused on a few zip codes on both ends of the spectrum, and ran the numbers to determine how time on market impacts a seller’s desired profit.
In neighborhoods where houses are selling in less than 59 days, sellers are selling much closer to their original asking price. Here’s the nitty-gritty on two of those neighborhoods.
This Marietta neighborhood is home to Jim R. Miller Park, where the North Georgia State Fair is hosted each year. So far, zip code 30008 has seen 170 property sales so far in 2017, and theses houses have sold in an average of 34 days.
While these homes might not be valued as high as some others in Marietta, sellers are doing pretty well. So far, homeowners have listed their properties for a median of $169,900. They’ve made a profit of just 4.6% less at $162,000.
There’s been a ton of activity in East Atlanta, where some 377 properties have already sold this year. With trendy areas such as Little Five Points and the Ponce City Market on its border, it's no wonder why it's And those transactions have taken place in an average of 37 days, which speaks to how desirable this area is right now.
But let’s speak to what really matters to most sellers: cash money. Homeowners in this area have listed their houses for an original median of $304,950. They’ve done incredibly well, and have received a median of just 1.6% less at $300,000. We’re thinking that there might be some room for sellers to increase their listing prices just a tad.
Sellers with houses that sold in more than 59 days are making up to 20% less than their original asking price, which is significantly more than what we’re seeing in areas with shorter days on market. Check out what we found in two specific areas.
Lithonia has seen a solid amount of transactions year to date, with 235 houses already having sold. However, it’s taking 68 days, on average, for sellers to receive offers on them.
How is this affecting pricing? Well, sellers have originally asked for a median of $119,975, but as time goes by, they have been more willing to take on price reductions. They’ve ultimately settled for a median of $105,000, which is 12.5% less than that original list price.
Since the start of 2017, we’ve seen a ton of activity in Buford. Some 395 houses have sold in the 30518 zip code of the town. But, at 72 days on average, these properties are taking a mighty long time to sell.
And sellers are taking a bit of a hit. They originally listed their houses for a median of $284,900, but continued price reductions have driven them to take a median of 9.8% less at $257,000.
There you have it: Houses that sell under 59 days result in higher profits. If homeowners market their houses effectively, conduct pre-inspections and price effectively, they will absolutely reap the benefits.
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