How Selling Your Home Is Like Baking A SouffleMay 22, 2018
If you’ve ever baked a souffle, you know that the key to having it come out perfect boils down to timing. Take it out too early and you have a soupy mess, leave it in for too long and the souffle becomes as hard as a brick. The same rule can be applied to selling your home. You might be thinking, “there’s no way selling my home is similar to baking a dessert!”. Surprisingly, there’s more in common than you may think. When selling your home, timing is a crucial factor in trying to get the highest price.
How Your Home Is Listed
Many home sellers are unaware that when their real estate agent lists their home for sale, they upload a listing to the Multiple Listing Service or MLS for short. Each region has their own MLS which allows prospective buyers’ agents to know which homes are currently for sale. Once a listing is added to the MLS, its considered as being ‘on the market’. Days on Market refers to the number of days a listing has been on the MLS.
Do Days On Market Really Matter?
Often, real estate agents will use Days on Market as a scare tactic to make you accept the first offer that is presented even if that offer is below a fair price. They’ll claim the longer your home remains unsold, the more likely it will sell for a lower price. However, a study by a University of Chicago economist, Steven Levitt, found that, on average, agents actually list their own homes 11 days longer than if the home was owned by a client.
This is because when a real estate agent sells their own home, they typically do not take the first offer that comes in. However, when an agent is representing a client, they’ll urge them to take the first offer saying that “a bird in the hand is worth two in the bush.” This stems from the broken commission structure which incentivizes your agents to sell quickly, not for the highest price. Why? Because a $20,000 decrease in the sales price of your home only results in a $250 decrease in the Agent’s commission. This outdated model doesn’t seem very fair to Felix.
That said, homes with abnormally high Days on Market are unlikely to get shown to prospective buyers, because buyers may think that the home has remained unsold due to a defect or other major flaws. Akin to Goldilocks and the Three Bears, you must determine the optimal number of days on market.
The Felix Solution
At Felix, we take the trust placed in us by homeowners very seriously. That’s why we’ve analyzed thousands of data points to determine the optimal number of Days on Market to get the highest price for your home.
We’re using machine learning to examine factors such as historical sales, current market conditions, and specific home features to determine the most optimal price for your home. We also target specific buyers that are more likely to place an offer on your home. This typically results in a bidding war between multiple buyers resulting in a higher sales price for the homeowner.
By leveraging the latest technology, Felix is able to ensure we can sell your home both quickly and for the highest price. In fact, we’re so confident that we guarantee your home will sell within 90 days, and if it doesn’t, we’ll buy it from you ourselves so that you can have the certainty of a sale from day one.