Maximizing Your Property’s Value: Understanding the Market Climate and Sales Methods

Selling a home or property can be an overwhelming process. Many sellers want to know how quickly their property will sell, but there are a few factors that determine the answer to that question. In this article, we will discuss the two main factors that influence the selling process: the market climate and the sales method.

Jared Williams, a real estate professional with Auction Plus Real Estate, emphasizes that the sales method is one of the main factors that determine how quickly a home or property will sell. A traditional listing and an auction are two different methods of selling a property, and they both have their own unique advantages and disadvantages.

At an auction, the property will sell on the same day. However, the number of bidders willing to raise their hand for the property depends on the market climate. In a hot market where there are more buyers than properties to purchase, the property can sell in just a few days in a traditional listing or have multiple bidders competing for the property in an auction. On the other hand, in a slow market with less demand, otherwise known as a “buyer’s market,” the property may take longer to sell.

In the current market, due to the circumstances of the economy, regardless of the method, it is highly recommended to allow the property to get proper marketing time to get the most out of it. The market climate and what’s happening will always determine if you should allow more marketing time. The timing and method that are best for you to sell will be discussed when you meet with a real estate professional. But always remember, when selling a property, marketing matters. 

If you decide to list your property traditionally, it’s essential to look at the absorption rate in terms of pricing. The absorption rate is a measurement of supply and demand, calculated by taking the average number of sales per month divided by the total number of available properties. According to Investopedia, a seller's market would have an absorption rate that is greater than 20%, and a buyer's market is when the rate is lower than 15%. In today's market, if we see a property take longer than 60 days to sell, it’s usually overpriced.

In contrast, at an auction, if marketed correctly, a true fair market value will be determined. The property will sell to the highest bidder, and the process is transparent, efficient, and quick. Seller’s can typically expect to close on the property within 30 days of the auction. 

In conclusion, when it comes to selling your property, the market climate and sales method are the two main factors that determine how quickly it will sell. A traditional listing and an auction are two different methods, and each has its own advantages and disadvantages. Regardless of the method, it is important to allow the property to get proper marketing time to get the most out of it. It’s also essential to work with a real estate professional who can guide you through the selling process and help you choose the best method and timing that suit your needs. Remember, it’s always a good idea to properly market your property and who market’s it, can drastically change the outcome.  For more information on how quickly your property may sell, contact Jared Williams at Auction Plus. jared@auctionplus.net