As I was flying back to Tallahassee from the Joe Manausa Real Estate Convention, I met a woman who was flying back to her home in the Pittsburgh area. When she found out that I was a Joe Manausa Real Estate Real Estate Broker, she had all kinds of questions (and statements) about getting a home sold in today's market. She has her home for sale up in Pittsburgh and our conversation unearthed some interesting points that I thought I would share today.
This woman is the classic frustrated homeowner. She put her home on the market over 6 months ago and expected to have been moved by now. She is retired and wants to move closer to her children, but her house is standing in the way of her dreams. So, what should she do?
A Home Sales Success Story
In case you missed it, Summer Munyon wrote an excellent article yesterday on how to receive multiple offers when selling your home. Summer is one of the top REALTORS® in the Tallahassee real estate market and she knows how to get a home sold. In her article, she provides a clear plan on getting a home sold and how her process achieved multiple offers on the recent sale of her personal home.
Understanding Current Home Sales Success Rates
So, if we consider the woman from Pittsburgh who has not sold her home after being on the market for over 6 months, and Summer Munyon who has received multiple offers for her home, we might just start wondering what are the odds of selling a home? Fortunately, we measure that statistic on a regular basis at the Tallahassee Real Estate Web Site. It is one of the more critical issues and we want to know what percentage of homes being listed, are being sold.
Home Sales Success Rates Are Low
The first thing that I see when I look at the real estate graph above is that all the trend lines have been falling. So, what are these trend lines and what do they mean? Each trend above is a measurement of the number of listings sold versus the number of listings put on the market during a specific period of time. For example, the purple line is the three month trend. If we follow the purple line, we can say the currently the average ratio of homes sold versus homes listed (the Home Sales Success Ratio) in the past 3 months is about 23%!
Successful Home Selling Process
The most important trend in the real estate graph above is the 1 year trend. All effects of seasonality are removed when we look at a full year's worth of data. We can see that the 1 year trend appears to have bottomed out (and maybe is starting to rise...?) at around 35%. Stated in the simplest way possible, this means that roughly 1 out of 3 people who planned on selling their home in the past year actually did. 2 out of 3 failed to sell their homes!
This does not need to be the case anymore, but the fact is, there is always a heavy portion of the market that does not sell. Even in the boom market, many people failed to sell their homes after they were listed on the market. They tried using old-fashioned marketing techniques (or worse, no marketing techniques) that just do not draw today's buyers. They need to embrace the power of the internet and optimize their exposure to the buyers that are currently in the market to buy a home.
Plan To Sell Your Home
I guess the moral of the story, and the advice I gave to the woman in Pittsburgh, is plan to sell your home. Hire the company that best knows current market conditions and who can expose the home on an international real estate marketing platform. 92% of the buyers for her home are on the internet right now. She needs them to see her home. Be like Summer Munyon and get buyers competing to buy your home.
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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.