This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703.244.6115 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.
Question: What is the relationship between list price and days on market?
Answer: One thing that is very important for both home sellers and buyers to understand is the relationship between list price & days on market (often referred to as DOM). Since they each have an effect on the other, this relationship is important to understand when pricing a home or considering making an offer.
From a buyer’s perspective, if a home has been on the market for longer than other listings, several ideas might run through their heads.
Are there potential issues with the home? Perhaps there have been failed offers, or the seller is difficult to work with. Most commonly, they will see the home as overpriced.
A simple miscalculation of the market could raise all of these red flags for buyers.
Setting the right price at the start is crucial to avoid these concerns from buyers, as well as giving the seller the most negotiating power.
Sellers might have a target in mind for what they would like to list for, but this is not always the best place to start.
Sellers should think of the list price as the starting point of a negotiation. The goal is to get as many buyers in on that negotiation as possible. Buyers are much more likely to go higher than the list price if there is competition, and if the house sits for weeks or months, they may very likely go lower than the list price.
It is important for both buyers and sellers to discuss the market regularly with their agent. A “long time” on the market can vary greatly over time and by region. Consult with an experienced agent for the best advice.
Hope Peele is a licensed real estate agent with Corcoran McEnearney in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703.244.6115.
If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email: [email protected] or call 703-549-9292.
Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.
