Welcome to the roller coaster ride for Schaumburg Townhomes! In this gyrating edition of June's market update I'm going to decipher for you the current market trends (cause that's what I do) and tell you about time on market. A more complex word that some use might be 'absorption rate'. So how long will it take your Schaumburg townhome to sell?
Let's first begin with the use of 'townhome'. What I mean in this report is Multi-Family closed sales which include townhomes, condos, duplexes, quads, etc. I don't want to focus on the multiple styles but on the issue at hand.
Second thought is about the market basic of supply and demand. Obviously in this market we have too much supply. When that happens the time it takes to sell your Schaumburg townhome also goes up. Buyers have a tremendous amount to choose from on the market but don't be fooled they are 'ready to pull the trigger' if they see something they want!
Pricing your home correctly in the beginning has many advantages as
these graphs will also illustrate to you. The best sales time is in the first 30 days of your townhomes listing life. Price is the dominate factor in getting your home sold, then condition for that price.
Twenty nine (29) Schaumburg townhomes or 17% of the market sold in the first 30 days. That's terrific for our area! Success percentages become less as the market times become higher (time to check the graph). At 150 days on the market, your Schaumburg townhome is basically dead in the water. At 200+ days on the market your for sale sign now says 'rest in peace'.
In fact to drive this point 'home', there are Schaumburg townhomes that finally sold after being 365 or more days on the market. Many townhomes had 20%, 30% or MORE in price reductions before they finally sold.
Days 1 to 30 - No price reductions and sales prices were 2% to 10% off list price. A few sales were at list or OVER list price on foreclosures up to 3%.
Days 31 to 60 - Many townhomes had reductions of at least 5% but a majority reduced from 15% to 25% off their original price.
Days 61 to 90 - All townhomes had reductions in this category also from 2% to 20% off their original price. After 60 days on the market a price reduction is warranted no matter what the market's like.
From 90 to 120 - Sellers seem to be in a fog about what to do about their price. All reduction percentages are in the high teens and twenty's. This is the smallest segment of the graph which is troubling. This is where sellers
start to 'chase the market' downward. Instead of being 'in' the buying mix with a correct price, sellers are continuing to change the price downward while other sellers also change their price. Talk about a slippery slope!
So at this particular time if your Schaumburg townhome is priced correctly from the start there is a 42% chance of your home selling within the first 90 days like these other sellers did.
The Price-Time Graph shows that over-pricing your Schaumburg townhome initially can have a serious impact, not only for time on the market but also on your bottom line. Your sales net is tremendously effected in lost time and lost value.
Looking for an agent that's really a market expert? Let's get your Schaumburg home on the market and priced right to sell!
Looking for a home in Schaumburg? Please give me a call or email me to talk about the possibilities.
Market Update for Schaumburg Homes
Sources:
Debe Maxwell, Charlotte NC Contributor and Top Agent
MRED June Stats 2011
It's just like fishing isn't it...window of opportunity and you'd be using the right bait to catch the fish. So many folks still don't understand the basics. Price, condition and marketing. Period. If all are done right, it sells. Good information.
Debb: That's an excellent anlogy that I couldn't have said better.