June signaled a dominant trend for the "buying season" in the ES area of our Valley.Our total number of active listings drifted down by 27 to just 400.
Of the 400, 137 were new listings and of those, mostly short and regular sales. Again not an overwhelming number of foreclosures present.
On average, the number of days on the market (DOM) before a listing gets into escrow is running 99. Further it is averaging 125 days, total on market days, before that listing that has gotten into escrow will close and produce funds for the seller.Currently in this mix is the fact that 24% of all escrows that are opened never close with that buyer and become what we call a BOM(back on market). Another 26% are expiring without ever going into escrow.
For those sellers, a serious showdown with themselves is in order. Do they really want or have to sell their home? Or do they only want to sell it at a certain price point?. If it is the latter, that seller is not considered a motivated seller and believe me, these buyers and their agents can tell one from the other.
Often just an inappropriately high list price is the tip off.Which brings me to the average listing price $726K versus the average sales price, $599K and the median list price $580K vs the median sales price $484K. The distance between these "before and after" figures are called several names: "an overpriced turkey (OPT)", "an exercise in negotiations", " an appraisal nightmare"!
Suggestion to Seller:If you really want( need) to and no agent you have interviewed is fond of your ideal price. Don't just list it with the highest of the candidates. Buy an independent appraisal. Your bank can give you a few appraisers' names.When that appraisal comes back and you if are still interested in selling, list your home at that figure (or even a bit less). In this market you can't under price your home.
Why? Because due to all the technology, today's buyers are the savviest we have ever seen and they know what a home should sell for. Listing like this often creates a seller's market on just that home only---despite the surrounding market being overwhelmingly buyer favored.
Multiple offers can make you the one to decide rather than the buyer. If you are then going to purchase a property, this will become very clear and you will probably "gain" what you "lost."