November 15, 2024
In the latest compelling episode of ‘Rethink Real Estate’, host Ben Brady delves deep into the vital statistics that shape the real estate market, specifically focusing on days on market and price reductions. This analysis is essential for anyone involved in real estate transactions, offering insights that could dramatically influence selling strategies and outcomes.
Ben starts the episode by discussing the crucial metric of days on market. He explains, “Once you hit a certain level, what the point of no return is,” highlighting the significant impact prolonged market exposure has on selling properties. He reveals, “if a property hits 30 days on market in most of the major marketplaces in North America, there is over a 70% chance that that property is still there in 60 days time.”
This statistic alone underscores the urgency required in decision-making when it comes to adjusting marketing strategies or considering a price reduction.
Moving into price reductions, Ben discusses their inevitability and strategic importance. He notes, “National Association of Realtors brought out a statistic not so long ago that stipulated to actually get movement on your property, you need to adjust the price by 4 to 6% of the original list price.”
Ben continues to dissect the average timelines and subsequent reductions needed, stating, “If you do one price reduction, there is over an 80% chance that you need to do two more within 4 to 6% of the original list price in order for the property then to go under contract or into escrow.”
These insights are not just numbers but are strategic levers that agents and sellers can pull to enhance their chances of selling properties under challenging market conditions.
A significant portion of the podcast is dedicated to comparing the auction process with traditional real estate methods. Ben passionately argues for the auction process, pointing out its efficacy in maintaining pricing leverage and reducing days on market. “The auction process deals with all of this. Instead of a negotiation down from a price, it is a negotiation up,” he asserts, advocating for the upward momentum that auctions typically generate.
For real estate professionals looking for actionable advice, Ben’s discussion serves as a critical toolkit. He elaborates on monitoring critical points within the market, such as days on market and the timing of price reductions, which are vital for making informed decisions about property listings.
This episode of ‘Rethink Real Estate’ is a must-listen for agents, sellers, and anyone involved in the real estate industry who seeks to understand the dynamics of pricing and market timing. It offers a profound look into how strategic adjustments in price and understanding market statistics can significantly affect the sale process.
This comprehensive analysis not only equips you with the knowledge of when and how to effectively implement price reductions but also introduces the auction method as a robust alternative to traditional selling tactics, ensuring you stay ahead in the fast-evolving real estate market.
For more episodes like this, subscribe to the Rethink Real Estate on your favorite podcast platform and stay tuned for more insights from industry leaders who are shaping the world of real estate one transaction at a time.