The most common question people ask when selling their homes is “How much is my home worth?” At the end of the day, homeowners want to know their bottom line – how much money will they walk away with after the sale.
But another key factor that is often overlooked, is how long the home will take to sell. Sellers need to consider a prolonged sale and the impact this will have. The longer the home is on the market, the longer you are paying mortgage payments, utilities and taxes – not to mention the stress of keeping your home in tip top shape for showings with buyers.
Kelly Richert with Graham & Grace Realty is ranked in the top 25 of approximately 3,000 active Saint Charles Realtors for sales volume in 2020**. Bravo Kelly! While this volume ranking is a significant achievement, (especially for a small brokerage), sales volume alone isn’t the most important factor when choosing a Realtor®.
List to Sale %
If you are selecting a Realtor®, you want an agent with a decent sales volume record. This is proof that they are experienced and are consistently closing contracts. But, in addition, you also want an agent with a high average List to Sale %. This is a sign that they are experienced, AND they are getting top dollar for their clients.
List to Sale % is the amount that a home sells for compared to the amount the home was originally listed for. For example, if a home was listed for $100K and sold for $90K, the List to Sale % would be 90%.
Kelly’s average List to Sale% for the last 24 months is 99.8%*. See table 1A. This is excellent! She is #3 of Saint Charles Realtors.
Let’s unpack this figure a little further. Based on this 99.8% average, Kelly would typically sell a $270,000 home for $269,460. Consider an agent with an average List to Sale % of 97%. That actually sounds pretty good right? However, 97% of a home that’s listed at $270,000, is only $261,900. That’s $7,560 less dollars in your pocket at closing!
Not only is a high List to Sale % good for your bottom line, but it is typically a sign of a much smoother and faster sales process. When the List to Sale% average is low, this can be for a multitude of reasons. Often it means homes are priced too high for the market, resulting in significant price reductions and increased days on market.
Sometimes, homeowners have unrealistic expectations of what their house is worth. Hiring an agent who doesn’t understand the local market, who prices the home too high, ultimately will cause the house to sit for longer and sell for less.
Average Days on Market
Average Days on the Market is how many days a home is listed on the MLS (Multiple Listing Service) until the home goes under contract.
Over the last 2 years, homes sold by Kelly Richert have sold in an average of 13 days*. That’s less than 2 weeks and tied for the fastest in town!
Keep in mind that these are averages. In a hot market (like we’ve seen lately), many of the homes listed by Graham & Grace Realty have sold in a few days and for over asking price!
If you can sell your home faster, and for more money, this means less stress. It means less time worrying about your home being perfectly clean and tidy for showings. It means less people in and out of your home over an extended period of time.
Selling your home faster, for more money, is the dream of every seller.
So How Do We Do It?
It starts with pricing the home strategically. At the end of the day, a home is only worth what the market will pay for it. A hopeful seller using a less experienced agent may fall into the trap of overpricing their home. Unfortunately this will lead to more days on the market and ultimately a price reduction.
Another caveat about overpricing a home is the appraisal. If the buyer is getting a mortgage to buy the home (most are), their bank will require an appraisal to verify the home’s value. If the house doesn’t appraise because it is overpriced, the buyer will have to come up with the cash on their own, or renegotiate for a lower price.
You need a Professional Realtor, experienced in your market, to do a detailed comparative analysis of your home in order to set the price just right.
At Graham & Grace Realty, we do this by focusing intently on the market data and what it tells us. We take into account ALL of the unique characteristics of your home and how these features stack up with other homes in the area. Our formula for success is giving you an honest assessment of your home’s value and then putting forth a home preparation and marketing plan to get multiple buyers in the door. The ultimate goal is to create a buzz about your home and generate multiple offers.
“But what if my home isn’t ready?”
This is one of the most common questions and fears that sellers have. True, many homes are not “showroom” ready to be marketed for top dollar. That’s where we come in!
We are experienced in guiding homeowners to make smart updates (not all are expensive) that will get the most bang for the buck. We have an extensive network of contractors, stagers, cleaners, handymen and more to help you get your home to shine. Check out our blog Thinking of Selling? Make Your Home the Best on the Block! for some tips and tricks that won’t break the bank.
Once your home is ready to shine, Graham & Grace Realty uses high end photography, creative video and social media marketing to bring more buyers to the table. Now more than ever, buyers are looking at homes online to see what’s inside. If your photos, videos and virtual tours aren’t up to snuff, you will get passed over.
Getting your home under contract is one of the most important and exciting milestones in the home selling process. Every seller dreams of selling fast for top dollar. This is a win-win situation!
Even in a hot market, there are no guarantees that your home will sell on the first day, or for over asking price. If someone is telling you this, RUN! Each home sale is unique and requires a professional Realtor to identify the best path for success.
To increase your odds for a fast sale at the highest price, do your research. Choose an experienced Realtor, with a high List to Sale % average and a low average days on market. If you do, you will be leaving your home sale less to chance.
* Data from 11-4-2020 MARIS Homesnap Pro, Agent Kelly Richert Sold homes in last 24 months.
** MARIS Ranking Report, Saint Charles County Association of Realtors Volume Ranking in Missouri from 1/ 1/2020 to 11/ 4/2020