I hear and read quite a bit about market time in real estate and I always feel for the consumer who really wants to know how long it takes to sell a home. You would think that I could pull some great numbers from the Tallahassee MLS and tell you, but the reality is that a much simpler way to determine this already exists.
The key to understanding market time is to understand the process that the homebuyer utilizes to buy a home. This is so important that I will say it again and offset the message in quotes:
"The key to understanding market time is to understand the process that the homebuyer utilizes to buy a home."
The Three Stages Of The Homebuyer
We know that more than 94% of homebuyers are using the internet during the process of buying a home, so it gives us a great opportunity to measure and study the process that they undertake from the first time they think about buying a home, until the day that they put one under contract. This is why we focus on marketing a home for sale on the internet.
Homebuyers go through three stages from the time their subconscious starts to push them to buying a home. They start out as information seekers, then they move to comparison shoppers, and then finally they become buyers who are ready to make a purchase decision. On average, this process takes over 9 months.
The sad reality is that most real estate marketing programs are designed to promote the property to buyers who are just starting the process and are just seeking information. They are not ready to buy at this stage and thus this marketing is a waste of time and money.
So, when measuring market time in real estate, do you measure the time wasted marketing a home to somebody who is not going to buy it? Most people do and most real estate reports are filled with this erroneous information.
Market Time In Real Estate
The day of the computer is upon us. Get used to it. It doesn't take months to sell a home. If you hire a real estate company that has a ready pool of buyers and you follow sound pricing practices, you should be able to sell your home within the first month.
By utilizing a targeted approach to marketing, where ready homebuyers are the focal point, it only takes 4 to 14 days for a real estate company to promote your property to over 90% of the buyers that are ready to buy. By utilizing a successful marketing plan in real estate., home sellers can shave a lot of time off of what their competition is doing to sell a home.
Want to see what I mean? Follow this link to a video on traditional marketing methods versus internet marketing methods.
Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.