In very active markets, some homes sell much quick than others, and some homes sell for close to full asking price while others sell for less.
Even in times of a slow market like we've had in Calgary for quite some time, there are ALWAYS properties that sell.
So the question is, why do some houses sell and others sit and lanquish on the market?
The answer is really simple: Houses that are priced competitively and staged impeccably, sell much faster and for more money. Sellers need to understand that just because their house is “on the market,” it doesn’t mean their house is “in the market.”
In this diagram, the vertical axis represents price. At the top are houses priced above the current market value. The most competitively priced homes appear closest to the center of the chart.
Source: Shift, Gary Keller, McGraw-Hill, 2009.
The horizontal axis represents condition and staging relative to the competition. Homes that are staged (presented) the best and in the best condition appear on the left. The more work a home needs (to fix it up), the further to the right it appears on the chart.
The key factor that separates a Seller’s Market from a Buyer’s Market is the percentage of inventory (homes) that fall within either category:
- In a Buyer’s Market, there is actually a relatively small percentage of homes that are “In the Market” based on both a competitive price and condition relative to comps. Houses out of this zone are effectively out of the market. They are either priced too high or the condition doesn’t warrant the list price.
- In a Seller’s Market, the percentage of housing inventory that is “In the Market” is considerably larger. Prices may be appreciating, so even those listings that appear to be overpriced today may get pulled back into the market with a little time.
Keep in mind that in today’s real estate market, buyers access home listings online before they ever consider going to see them in person. They can quickly narrow their search to a geographic area and price range. Once they have identified that subset of houses, they go through a quick process of elimination. Your staging and photographs need to be impecable.