Tuesday, January 29, 2008
"The Golden Hour" When Selling Your House
The Golden Hour is a term used in emergency medicine where it is "widely believed that the victim's chances of survival are greatest if they receive definitive care in the operating room within the first hour." In real estate we have our own version of "The Golden Hour" but we should call it the "Golden Fortnight", or the first 14 days after a listing goes on the market. When a home goes on the market it immediately attracts all of the qualified buyers that have been looking for homes in that area and in that price range. If 2 weeks pass and buyers have gone through the home and you have no offers, you have missed your Golden Hour and may end up chasing the market unless you take immediate action.
You haven't had 10 people look at the home in the first 14 days? Then you are probably over priced. Buyers don't look at over priced listings. And yes, that even applies to homes over $1 million dollars.
After the first 14 days you start getting those buyers that have been looking around but are probably 60 to 90 days out from buying a home.
After 30+ days you begin to attract those buyers just entering the market and could be more than 90 days out from making an offer on a home.
If you do not receive an offer on your home after 14 days on the market you need to reduce your asking price substantially. $5,000 isn't going bring buyers back in your home. With these types of reductions you will end up chasing the market and will end up selling below market value when all is said and done. Don't believe me? You know that house that has been on the market for 268 days at $299,000? What is they reduced to $289,000? No buyer is going to give them any where near that price.It's a stale listing now and they will eventually pay the price for not positioning itself correctly when it was first listed.