Why Longer Days on Market Hurts Your Home Sale

Are you wondering how to sell your home quickly and for the best price? The truth is, marketing can only go so far because one of the top factors that influence your home sale is strategic pricing. If you price your home too high, it will likely sit on the market for longer than you anticipated. Today, I will explain the pitfalls of extended days on market and how to avoid it: 

• The impact of longer days on market. The first thing to understand is the psychological impact that days on market have on potential buyers. Once a property has been listed for more than two weeks, buyers begin to wonder what’s wrong with it. In a market that has been a strong seller’s market for the past four years, homes typically sell quickly. If a home lingers, it develops a stigma. Buyers may assume there are hidden issues or that the property is overpriced. This perception can lead to fewer showings, lower offers, or no offers at all.
• Dangers of overpricing. A common mistake sellers make is overpricing their homes with the intention of negotiating down. While this might seem like a strategic move, it often backfires. As the days on market increase, the likelihood of a price reduction grows. When you reduce the price, it signals to buyers that you’re open to negotiation. Starting with the right listing price is crucial—it can drive competitive offers and potentially increase your final sale price, whereas an overpriced listing invites lowball offers and extended market time.
  
  

"Overpricing your home leads to longer market times and reduced offers."

• Market positioning matters. Your listing gets the most attention and interest when it’s first introduced to the market. This is the time when your home is at the top of online search portals, attracting the most potential buyers. However, the longer a home sits unsold, the further down it falls in search results, losing visibility. This is why market positioning is so critical—you want to capture the most interest as soon as your home hits the market.
• Increased carrying costs. Beyond the psychological impacts and reduced visibility, longer days on market also mean increased carrying costs for sellers. Additional months on the market mean more mortgage payments, property taxes, insurance costs, and possibly delays in purchasing your next property. These cumulative costs can quickly add up, making it even more costly to hold out for a higher price.

If you’re considering selling and want expert guidance, reach out to us anytime. Just dial 603-557-6661 or email rhvizda@kw.com to schedule a consultation. We take pride in providing a comprehensive market analysis to help you price your home correctly and attract the most buyers. We look forward to hearing from you!