Homes in Madison spend an average of 30 days on the market, according to the latest statistics. It is, by the way, the least amount of time homes have spent on the market in our MLS’ history.
Well-maintained, staged homes, in desirable areas, can sell within weeks, sometimes quicker. Luxury homes naturally take longer.
Let’s take a look at the answers to the most common question I receive from my home selling clients
The local economy' impact on home sales
Real estate is sensitive to the economic cycle and, when the economy slows down, so does the real estate market. Remember, real estate is local, so not only is it affected by the national economy (food prices, etc.) but on local economic factors as well.
When an area sheds jobs, for instance, people lose confidence in their future income prospects and don’t tend to buy homes. The converse is true as well, so here’s hoping you’ll sell your home during a hot jobs market – it will sell quickly.
Local and national legislative actions
In 2009, President George W. Bush signed legislation allowing for a first-time homebuyer tax credit. This, in turn, caused a surge in home sales and, eventually, it helped an estimated almost 2 million Americans buy homes.
The tax credit helped create a sellers’ market in many regions across the country
And, as is the case today, home values rose and homes sold quickly.
The home’s location impacts how long a home takes to sell
Every town has its preferred neighborhoods. Whether it’s because home to a popular park, within walking distance to good schools or allow for a snappy commute, homes in these areas attract more buyers and, thus sell faster than homes in less desirable areas.
In the current market, if the area is popular enough, and your home is in good condition and priced right, it may go under contract within hours of being listed.
The amount of time a home takes to sell is affected by supply and demand. When there are fewer homes for sale and lots of buyers in the market, home prices tend to rise. That doesn’t mean, however, that the sky is the limit when it comes to setting an appropriate listing price for your home.
Market value is what it is and all the hoping in the world won’t change it. Price your home appropriately for the current market and it will sell quicker than if you overprice it.
The home’s condition
We’ve mentioned “condition” several times now. That’s because a home’s condition is a key determinant of how long it will spend on the market before selling.
Homes in good condition sell quicker than those that need work. Now, we aren’t referring to major renovations, but homes that have been maintained over the period of ownership, show pride of ownership and are move-in ready.
Staged homes also sell quicker, by the way.
The current state of the local real estate market
In a sellers’ market – when there are few homes for sale but lots of buyers in the market – homes tend to sell quickly.
In a buyers’ market, when there are few buyers but a large supply of homes for sale, homes sit on the market longer.
If you list your Madison home for sale now, you can expect it to sell quite quickly.
Your real estate agent
The primary job of a listing agent is to market the home for sale. Not every agent has the experience, the knowledge or the money to market listings yet, sadly, they pursue them anyway.
Ensure that the agent you choose has verifiable marketing experience and the money to back up a robust and multi-pronged marketing plan.
What happens during the contract period
Inspections, and the ensuing negotiations over them, loan approval, the buyer’s sale of her current home, appraisal problems and title search problems are just a few of the issues that may slow down the sale of your home.
Some of these can be avoided and an experienced listing agent can show you how.
Want the inside scoop on strategies to help you sell your Madison home for the most money and in the quickest amount of time? Request your free copy of Jolenta's book, "A Homeowner's Guide to Selling"
Hi, and welcome to our Madison real estate blog. Whether you're a consumer, journalist or Realtor, we encourage you to share your thoughts by leaving a comment. Here you'll find relevant local and national real estate information, as well as market statistics, insight, and information about a variety of neighborhoods and real estate listings. If you'd like more information about anything in particular, please use the contact form and I'll be happy to help.
Jolenta Averill, Principal
Lake & City Homes Realty