What is the Average Time to Sell a Home?

In recent years, the average time to sell a home has dramatically increased. This is largely due to the unemployment rate and credit crunch, which are limiting the number of first time home buyers entering the market, as well as the increasing number of short and foreclosure sales. According to the Accredited Seller Agent Council, the average time to sell a home in the U.S. is 10 months. However, there are many factors that can impact how quickly your home will sell.

Factors Affecting the Average Time to Sell a Home

Home listing price - An asking price that is either too low or too high can dramatically reduce the chances of selling your home on a timely schedule. Your agent should be familiar with the local market and provide you with local comps (comparable homes that have recently sold) to help determine what your asking price should be. Whether you take or ignore this advice is a contributing factor to the length of time the house will remain on the market.
Condition of home - The condition of your home during viewings or appraisals is also a contributing factor. When anticipating a showing or other appointment, your home should be spotlessly clean and tidy with no visible flaws. Nail holes, carpet stains and other defects must be patched, cleaned or corrected. Many agents also suggest you ôdepersonalizeö your home by removing personal items such as photos, memorabilia, etc. If you own pets, they should be contained in a separate area of the house with no evidence they live on the premises. Home buyers need to be able to envision themselves living in the home - the less clutter or distraction, the more likely it will sell.
Location of home - Location is always a top factor in the desirability of a home, especially in a soft or surplus market. A home that is adjacent to a busy road, a messy neighbor, or a busy shopping center will be more difficult to sell than a home with open range, unobstructed views, or better school districts. If your home is not in a desirable location, it may take a price reduction as well as additional time to sell.
Region - Home markets vary from city to city based on the employment rate and inventory of available properties. For that reason, the average time to sell a home can vary by months depending on what city or market it resides in. According to ClearCapital, the average time to sell a home for soft markets such as Miami, Las Vegas or Detroit could be 10 to 12 months, whereas in a healthier market such as Washington D.C. or Houston, it can take as little as one to two months.
Home Seller Flexibility - A flexible seller who is willing to accept spur-of-the-moment or random viewings may be more likely to receive an offer than those who limit the schedule or frequency of potential buyers to view the property. Likewise, a seller who is flexible on the price of the property will be more likely to accept a reasonable offer. The seller needs to be realistic and understanding that, in order to sell a home, compromises are needed.
Type of Home Sale - The type of home sale is also a contributing factor in how quickly a house will sell. If the property is a short-sale or foreclosure, the process can take six months to a year (or more). However, if it's a traditional home sale with a quick close, it can take as few as two to four weeks. Unfortunately, in these scenarios, the seller has little control over how long the process will take, as the majority of acceptance and paperwork lies with the lender and title companies.
Clearly there are a variety of factors that affect the average time to sell a home. Being aware of these factors, making the necessary adjustments, and having flexibility and patience will help smooth the process and bring your home to a close within a desirable time frame. If you want to get a better estimate of how long it will take to sell your particular home, let me know. Agents are happy to take these requests even if you aren't sure you are selling your home.

My Top 3 Picks for Outside Dining/Drinking In and Around Lancaster

Not in any order... but my favorite places to hang with friends, have a few drinks and grab something to eat are below. (Click on the name to go to their web page)  I quickly add that I haven't hit all of the places with outdoor decks/patios, so feel free to comment with your favorites.

1. TJ Rockwells

Large multiple decks in a wonderful setting. Just outside of E-Town, Rockwells has a large selection of items from munchies to entrees. The food is good and the portions are significant. Some of my favorites: Baked Tomato Soup (covered in cheese), Ribs, Fish Sandwich and Wings.

2. Annie Bailey's Irish Pub

One of my personal favorites - maybe because I'm half Irish! Downtown Lancaster... and I have a preference for downtown. Nice deck, great service and fun people. The drinks and the food are a hit too. Again, Wings are excellent... as well is almost anything on their menu. and one of the few bars that can make a good Margarita. But my choice is always a Black and Tan. I watched the Women's Soccer World Cup Championship there... now only if they would carry all of the Raven's games!

Oh... I had to show the KW gang on the deck!

3. Loxley's

OK... the setting may not be the greatest... kind of overlooking the most heavily traveled road in the county and next to Rte 30... BUT, the outdoor bar and seating, downstairs and upstairs, are very nice. And, if you haven't noticed, the upstairs bar has water running through it... seriously. Easy parking, which is a huge plus, makes this an easy spot for everyone to gather. The food I had was decent, but to be honest, I drank more than I ate there... so I still have to try more of their menu.

So there you have it.... my top 3 picks....  What are yours? Let me know. Click on 'Post a Comment' and add yours! I'll be doing more "reviews" based on different characteristics/features in the near future...  

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The Myth: Sellers "Pay" Buyer's Closing Costs

Sellers never pay the buyer's closing costs... plain and simple! Forever, all parties to a transaction have used the phrase: "Seller paid closing costs"... or something close to this. The truth is that in every situation I can think of where there is a "seller consession", the buyer is actually still paying the closing costs and financing them in with the mortgage. Let me explain why that is....

One needs to view the transaction from the seller's perspective. They have a house to sell and they have a price in their mind that they will not go below. Or, stated differently, if they get this price or above, they will be happy. For this example, let's say that price is $300,000. They could and probably are asking something more than this amount. Selling the home for $300,000 would net this particular seller $75,000 at settlement.

If a buyer comes to the table with an offer of $300,000, the seller is thrilled and accepts. If the buyer comes to the table with an offer of $315,000 and asks for $15,000 from the seller to cover closing costs; again, the seller will be thrilled and accepts. Under either scenerio the net price to the seller is $300,000. And in both cases he nets $75,000 or close to it after adjusting for a little difference in higher costs for commission and transfer taxes on the extra $15,000. (Approx. $1,000). The seller would not accept any offer that has a net price lower than $300,000.

Since the buyer may now have a loan amount $15,000 more ($315,000 vs. $300,000), the buyer is actually financing the closing costs into the mortgage loan. The seller hasn't "paid" the buyer anything.

It always surprises me that buyers don't get this. When I explain their options as we develop our offer strategy, they have trouble understanding it from the seller's side. And the seller's side is very simple - the bottom line or what is the amount they walk away with at settlement. How it's structured between offer price and seller consession doesn't make any difference to the seller - as long as the home will appraise for that offer price.

Finally, when preparing an offer,what we should ask the buyer is: "Are you paying your own closing costs at settlement or do you want to finance them?"

Keller Williams Realty Climbs to Second-Largest Real Estate Franchise in United States

AUSTIN, TEXAS (March 8, 2011)—Keller Williams® Realty Inc., announced today that it is now the second-largest real estate franchise in the United States based on the total number of sales professionals, surpassing Century 21, according to research conducted by REAL Trends, a leading source of analysis and information in the residential real estate industry. The company claimed the number two spot with 77,672 U.S.-based associates at the end of 2010, just two years after claiming the number three spot from RE/MAX® International.

 

“Once again, this milestone achievement is a direct result of the dedication of our associates and the stability and profitability of the Keller Williams business models," said Mark Willis, CEO of Keller Williams Realty, Inc. “It’s incredible to see the momentum that our associates and our offices have right now."

 

This news comes one week after the announcement of positive growth by the company at their annual convention in Anaheim. Including its presence in Canada, Keller Williams closed the year with 79,315 associates and 701 market centers (offices). At the convention, Willis also shared that Keller Williams associate profit share was up 7.2 percent, with its agents receiving $34.6 million dollars back in 2010. Despite industry contraction, Keller Williams associates across North America also showed significant percentage gains in listings taken (+13%), contracts closed volume (+9%) and contracts closed units (+6%).  

 

The company also formed Keller Williams Worldwide with Chris Heller as president, citing plans for global expansion, with plans to grow the division by an additional 75,000 associates in 10 years.  

 

“Our goals are to expand the Keller Williams Realty model – with the focus on training and our sound business models," said Chris Heller, president of KW Worldwide. “And, when looking for the right country and business partners in planning for expansion, we will not sacrifice the perfect fit with our mission, vision and the KW culture, those are absolutely necessary."

 

Despite the sharp downturn in the real estate market, since 2005 Keller Williams Realty has grown 30 percent in agents, 40 percent in market centers, 21 percent in closed units and 11 percent in closed GCI.

 

Keller Williams Realty received many accolades in 2010 including:

·         Entrepreneur magazine, No. 1 ranked real estate franchise on the 31^st Annual Franchise 500 list

·         J.D. Power and Associates, highest in overall satisfaction ratings from home buyers among the largest full-service real estate firms for the third year in a row

·         Inman News, Co-Founder and Chairman of the Board Gary Keller named one of the 100 Most Influential Leaders in Real Estate

·         Training Magazine, highest ranking real estate franchise on the annual Training Top 125, #47 Overall

 

“It is such an honor to be a part of a company with such dedicated and driven people," said Mary Tennant, president and COO of Keller Williams Realty. “Our associates are setting the pace in the industry. It is truly an exciting time to be in real estate and to be a part of the Keller Williams family."