In my years as a real estate professional I have had ample opportunity to “deliberate” the subject of preparing a home for market – how much to do, how much to spend and “can I guarantee a return on the investment”. In an effort to substantiate the claim that properly preparing a home for sale will increase the sale price I recently researched the subject. A national study by the Real Estate Staging Association found that (on average) homes that were staged spent 78% less time on the market than those that were not staged.
Vacant homes on the market:
- Un-staged spent 277 days on the market
- Staged sold in 63 days
Occupied homes on the market:
- Un-staged spent 233 days on the market
- Staged sold in 53 days
If we look at sales data for homes sold in the past six months in my hometown of Los Gatos we can see a distinct correlation between MARKET TIME (DOM or Days On Market), LIST PRICE and FINAL SALE PRICE and conclude that the amount of time that a home spends on the market is critical to the bottom line.
When you look at the difference between the properties that were on the market 30 days or less and the ones on the market between 31 – 60 days the numbers are disquieting.
0 – 30 Days On Market – sale price was 98.63% of asking price 31 – 60 Days On Market – sale price was 95.64% of asking price 61 – 100 Days On Market – sale price was 95.02% of asking price 101+ Days On Market – sale price was 93.93% of asking price
The properties that sold in less than 30 days sold for an average of 2.99% MORE than those that remained on the market for longer than 30 days and 4.7% MORE than those on the market over 100 days. In the case of a home that is priced at $1,000,000 this difference would represent a gross gain of approx. $29,900 – $47,000.
Real estate is an investment. Working with a well orchestrated team of real estate and financial professionals will ensure maximum return on your investment and drive the bottom line.