October 5, 2023

By Isabel Guzman, Realtor®

Video Transcription

I find that everyone loves to know what is  happening in their local real estate market.  

They want to know what trends are occurring and,  more specifically, how this affects equity in  

their home. In this video I'd like to talk to  you about Days on Market here at Legend Point.  

Days on Market is a number of days that the home  takes to sell. Hi, I'm Isabel, your neighbor right  

here at Legend Point and I'm also a broker  associate and realtor with eXp Realty. Okay,  

let's jump into the video. So Days on Market,  again, are the number of days it takes to sell  

a home. In this video I will be talking about the  2600 resale home sold from the beginning of this  

year. Now, what I mean by that is that I'm not  taking into account any new construction homes.

So again, up until the making of this video, which  is early September, there were 26 homes sold in  

Legend Point. On the average, the Days on Market  from these homes sold was 124 days—and I'm talking  

about from the day that they listed to the day  that they actually closed. Now of the 26 homes,  

the average Days on Market from the day that  it was listed to the receipt of a contract  

that got them to close was 99 days. So there is  a difference, right? So when you list a home for  

sale it'll go from the day you listed to the  day you close but I think an important number  

to note is the day that you listed to the day you  got that contract. That contract, right? So it's  

under contract, not really available for anybody  else, to the one that got you to close. Now what  

I want to share is about what happened with price  reductions. Now, of the 26 homes that were on the  

market, five of these had zero price reductions  while it was on the market, and guess what? It  

took 64 days to get it from listed to closed, and  only 21 days to get a contract that got them to  

close. Now compare this to the 14 homes of the 26  that had one price reduction during their sale,  

and those had 106 Days on Market from list to  sold and 86 to get the contract. Of the 26 home,  

there were also six homes sold with more than one  price reduction, and I'll be honest, some of these  

homes had up to seven price reductions, and their  Days on Market from listed to sold was 237 days,  

and 211 goals is what it took to get them by  one contract. Not surprisingly, homes with more  

price reductions sold significantly less from the  original listing price than those with no price  

reduction. Homes with zero price reductions  of the 26 sold for an average of $6,880 less  

than their original asking price. Homes with  one price reduction sold for an average of  

$17,521 less than the original asking price, and  homes with more than one price reduction—again,  

seven, I saw seven price reductions, five,  four, lots of price reductions—sold for  

an average of $54,060 less than their original  asking price. What's my point? Listing your  

home at the correct market price is the best  way to sell your house for the most amount of  

money for so many reasons. Listing your home over  market value? It's going to obviously take a lot  

longer to sell. And these price reductions empower  buyers to make lowball offers. It also just become  

becomes... not that pleasant to get through the  selling process. Negotiations get emotional,  

and you more than likely will get an emotional  real estate agent. I hope all of this makes sense.  

I know I threw a lot of stats in there, but I  thought it was super important that you really  

see what happens when you do not list your home at  market value. The last item that I want to talk to  

you about is the Days on Market reported per our  local board for the entire city of New Braunfels.  

Now, it's not a really direct comparison to Legend  Point because there are so many factors that  

affect this general number that's recorded with  the board. You know, you've got new construction  

homes that will affect this number, you have all  types of markets, all types of sizes, in terms  

of—it could be a house on a 10 acre property, and  they're not really comparison, but I still thought  

it would be worth sharing in this video. So the  latest report for our board for New Braunfels says  

that the Days on Market from listing to close was  116 days. Now, the Days on Market from listing to  

the day you get that contract that gets you  to close, of course, was a little bit less,  

which was 82. And then, on average, it took  the difference—33 days—to get the loan process,  

to get the house transaction through the title  company, etc. So remember, when you get a contract  

you don't close the next day, right? You have to  wait to process a loan, have your option period,  

have your appraisal done, and make sure that Title  has time to get it through all of its processes.  

This video is to inform you of the Days on Market,  but I think also this video is to really emphasize  

again the importance of listing your home at the  right market value. I can assure you there are  

so many studies out there that state that listing  your home at the right market value, right at the  

top, will help sell your home for the most money  possible, and the quickest possible, obviously,  

and it'll also assure that you have a smoother  transaction and experience while selling. Again,  

I'm Isabel with eXp Realty. I live, play, and  work right here at Legend Point. If there's ever  

anything that I can do for you, please feel  free to reach out. I'm always happy to help.