Orange County Housing Report:

SELLER’S BLUEPRINT

WITH THE SPRING MARKET RIGHT AROUND THE CORNER, HOMEOWNERS LOOKING TO SELL MUST RELY ON DATA, STATISTICS, AND MARKET TRENDS TO SET REALISTIC EXPECTATIONS AND ACHIEVE SUCCESS.

Digging deeper, precision pricing is essential for sellers to maximize their net proceeds in he shortest time possible. In January, the median time on the market for sellers who closed below the original asking price was 52 days, and the median sales-to-original asking-price was 95%. For a home originally priced at $1 million, the final sales price was $950,000, a $50,000 discount. For sellers who sold at or above the asking price, the median time on market was only 8 days.
33% of January closed sales reduced the asking price, and the median time on market was 93 days. The sales-to-last price ratio was 97.6%, indicating a sale 2.4% below the last list price. The median amount shaved off the final list price was $25,000. That means after they reduced their asking price, they still walked away with $25,000 less. For the two-thirds of closed sales that did not have to reduce the asking price in January, they were exposed to the market for a median of 13 days. The sales-to-last price ratio was 99.8%, only 0.2% below the asking price. The median amount shaved off the price was only $2,000. 

How are sellers able to maximize the sales price in the shortest amount of time possible? It boils down to a home’s “wow factor.” Active buyers have their favorite real estate app and are looking for anything new on the market, morning, noon, and night. When a home first hits the market, they watch the virtual tour, scrutinize every photo, and finally consider the accuracy of the asking price. Buyers are very educated and have a keen sense of price after carefully analyzing dozens of potential properties. Homes that are turnkey, upgraded, recently updated, and properly priced have more appeal. The higher the “wow factor,” the more buyers are interested in a home. They ultimately procure multiple offers and are more likely to sell above the asking price.

It is also crucial for sellers to understand that the housing market is seasonal. The market speeds up at the beginning of the year during the Winter Market, from mid-January through mid-March. The fastest time of the market in terms of the lowest Expected Market Time (the number of days it takes to sell all Orange County listings at the current buying pace) is typically between March and April. Even though the Spring Market is the busiest time of the year in terms of buyer demand, it is also when many new sellers hit the market. In fact, the Expected Market Time typically begins to rise slowly in April and continues to rise through both the Spring and Summer Markets. There is more seller competition the longer a seller waits to come on the market. Additionally, higher price ranges are slower than lower ranges, and there is typically a difference between attached and detached as well. To achieve the highest possible price in the shortest amount of time, sellers must evaluate current data, market trends, seasonality, price the home strategically, and present it as move-in ready. Sellers who take the time to look at the complete picture are better positioned to navigate today’s market with clarity and confidence.

Excerpt from Stephen Thomas OC Housing