How Does List Price Effect Days on Market?

As we near the end of 2021, we look back at some key indicators on sold properties. These indicators will help us determine strategy and pricing in 2022. One of the key indicators is the correlation between the Days on Market (DOM) with the average List Price Sold. As noted in the chart below for homes sold in Gogebic County in 2021, a seller can see that the higher the list price, the longer the DOM.

Source: UPAR MLS 12-5-21 Gogebic County January 2021-November 2021

What does this tell a seller?

  1. If the list price goes over $111,000, there is an average of an additional 30 or more days on the market.
  2. If the list price goes over $159,000, an average of an additional 60 or more days versus a home priced below $111,000 may occur.

There are a couple of factors that can be considered and is dependent on the types of buyers the region is attracting. Are buyers using cash for purchase or using financing? A buyer using financing can take up to 90 days to close on a property. A buyer with cash can typically take 30 days to close on the property. The lower the list price, there is more of a chance that buyers will be using cash.

There are many factors to consider when listing a property. A licensed agent can support the process and help homeowners make informed decisions when listing their property. Contact me for a free market analysis on your property. I can talk you through the process and make sure all amenities of your home are highlighted.