April 27, 2016 by Jeff Lowen
The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report, which revealed that homes were on the market for an average of 47 days in March. This is a decrease from the 59 days reported in February, as well as the 52 days reported back in March 2015.
42% of homes across the country were on the market for less than a month, which is the highest it’s been since July 2015 (43%)!
So what’s that mean in terms of real dollars and cents? The time it takes to sell, or “Days On the Market, (DOM)” takes into account the time from the day you stab a sign in the yard to the day you have an offer, everyone agrees to price and terms and now, you have a contract. What it doesn’t take into account is the time it takes from contract date (or “Ratified date) to closing, or settlement. In other words, if your property sells in a week, your “DOM” will be 7. If it’s under contract for another 8 weeks, it’s not counted.
How does this affect you? Back to the dollars and cents question. As a Seller, you’re responsible for paying the mortgage along with interest, taxes, insurance, homeowner association dues, any other special assessments, not to mention utilities, yard maintenance, typical upkeep, etc. Until you hand the keys over at settlement. Note: Unless it specifically states different in the contract. Remember, everything is negotiable. I once had the buyers pay the mortgage while the sellers stayed in the home over a month after the settlement date. Along with utilities, too! The longer it takes to sell, the more money you have to put out.
Among the states with homes selling in 30 days or less are Washington, Oregon, and Minnesota. The map below was created using results from NAR’s Monthly Realtor Confidence Survey.
The moral of the story…
Buyer demand is increasing as the inventory of homes available for sale remains low. If you are thinking about listing your home for sale this year, let’s meet up so I can help you take advantage of current market conditions. …And show you how I was able to get the buyers to pay for the mortgage while you’re still living there!
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