post

MythBusters – Real Estate, A Fast Sale is a Good Sale

I want to sell fast

Is it good to sell your Glendale Ca home in just a few days?

Afterall, you’ll probably get your list price, you didn’t have to put up with the hassle of showings and everyone is happy, right? Right?

Do you want top dollar?

This is not a throw away question, some people value convenience over dollars.
However, there is always a limit to how much money people will sacrifice for convenience.  If a fast sale seems attractive to you, do you have any idea what that fast sale might cost?

A fast sale will cost you money- a lot of money.

I imported all the Glendale CA homes sales for the last six months onto a handy-dandy spreadsheet and started doing my data geek thing.  I wanted to see if there was a difference between the dollar per square foot ($/SF) sales price of homes sold very fast (under 5 days) vs those who sold in two or three weeks.  My theory is that a fast sale does not leverage the marketplace- only a few people will know about the home and the price is limited to what those few people are willing to pay.

Sales in less than 5 days sold for 6% less

6% is a big difference.  The average $/SF for sales in 0-5 days was $315.  Homes that sold in 10-15 days average $/SF is $335.

Expressed another way, this means a 1500 SF home will sell for $30,000 more if the home is exposed to a larger number of buyers.

What does this mean to me?

Sales that register on the MLS with a super short marketing time are often sold before they are listed for the general public.  While a buyer might make an offer immediately on viewing, it generally takes several days to negotiate and then change the status on the computer.  It is possible… but not probable.

Therefore, a good portion of these fast sales are probably Pocket Listings- a listing that is held off the MLS and quietly marketed to a select group of people.

Make sure you understand your agent’s strategy for marketing your home.  Pocket Listings can be a great strategy, but the statistics show this method leaves a lot of money on the table.

I know what my home is worth, I won’t sell for less.

With all due respect, you might know what an appraiser will say it is “worth”, but you can’t know what the marketplace will pay for your home.  I am continually surprised by what my listings sell for, and I think about home values in Glendale Ca every single day.

There is only one way to know the top dollar value of your home, great marketing and wide exposure to the market.

About Kendyl Young

Leave a Reply