Get The Price Right First

Written by Jim the Realtor

February 8, 2013

When selling your home, the formula for achieving a top-dollar sale is to hire a sharp, experienced realtor to help present a clean, attractive home listed with marketable price.  Once you have that down, and are looking for other minor ways to gain an edge, consider these ideas from the wsj.com:

T.G.I.F. One day of the week can mean an extra $5,000 in a home-seller’s pocket.

Last year, homes listed on Fridays sold for 99.1% of the seller’s original asking price, the highest percentage of any day of the week, according to an analysis by real-estate brokerage Redfin.

Nailing the day that a home listing debuts is crucial, says Glenn Kelman, president and CEO of Redfin, which covers 19 markets in the U.S. “You get four times the traffic on the day of debut than any other time of the week, and you only get one chance,” he says. “Soon, you’re yesterday’s news.”

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Listing a home on a Friday rather than a Sunday—the worst day to debut—could mean a difference of nearly $5,000 on a $500,000 house, Mr. Kelman adds. Homes listed on Sundays end up selling for 98.4% of their initial asking price.

Properties listed on Fridays also sell the fastest—81 days, on average, according to the Redfin analysis.

What makes Fridays so special (other than a six-pack and takeout pizza)? Adults who have a Monday-to-Friday workweek tend to be more positive and happier on Fridays, an effect that lasts through the weekend, says Richard Ryan, professor of psychology at the University of Rochester. They also tend to report more vitality and energy on the weekends, which may prompt them to be more proactive in searching for homes, says Prof. Ryan, who has studied how the day of the week affects mood.

Conversely, Sunday listings have to sit around for a few days before people start lining up home tours for the following weekend. By that time, newer listings may make Sunday listings seem stale, says Redfin’s Mr. Kelman.

One other day seems to dominate the real-estate world: Tuesday. Homes that are listed on a Tuesday garner the most interest for home tours, seeing 2.41 home-tour requests, on average, the Redfin numbers show.

Tuesdays are big planning days for many people, says Francesca Gino, associate professor of business administration at Harvard Business School. Productivity peaks at the beginning and end of the workweek, and so some may use Tuesday to nail down weekend plans for home viewings.

Of course, not all real-estate agents focus on Fridays and Tuesdays. Takk Yamaguchi, an agent at Town Residential in New York, lists about 70% of properties on Wednesdays or Thursdays. “That’s the sweet spot,” he says. He finds that many buyers seem to book their weekend home tours by Thursday afternoon.

In the end, Mr. Yamaguchi won’t hang on to a listing waiting for a specific day. Listing later in the week helps, he says, “but it’s not necessarily going to be a game-changer.”

Hat tip to JP for sending this in!

2 Comments

  1. Jim the Realtor

    Don’t read his data as hard factual evidence that will predict the future, they are suggestions.

    More-important seller tips:

    1. Be ready to show the house the minute it hits the MLS – and have the lockbox in place too. Better yet, go on vacation for a few days.

    2. Input the listing early in the morning, because in San Diego our MLS hotsheet turns over at midnight – and realtors live off the hotsheet.

    A new listing of a $5,000,000 house hit the MLS last Friday night at 10pm. Do you think their were a lot of agents who saw it before the hotsheet went blank two hours later?

    3. Don’t use value-range pricing. If you don’t sell in the first few days, it is hard to unwind from there. Whether you lower both ends of the range, or just cancel the top, buyers will come to their own conclusions about what it means.

    4. Make contingency plans in case the house doesn’t sell in the first few weeks. Have a pricing strategy.

    5. If the average days-on-market is 81, don’t expect to wake up on the 81st day and have an acceptable offer roll in. Other sellers have already started to lower their price by then, and either you join them, or play the “I Don’t Have To Sell” card and hope you get lucky.

    6. If you are going to ask retail-plus, do something to deserve it – because buyers will pay it if they are impressed.

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