In a 2018 edition of the New York Times, Nobel prize-winning economist Robert Schiller said the United States was in the middle of one of its greatest housing booms. He also said it’s hard to know what would happen next. If you’re wondering how long does it takes to sell a house in uncertain times, we can help you through the maze of conflicting information.
How Long Does It Take to Sell a House?
It’s easy to find the number of days it takes homes to sell in a neighborhood, but figuring out how fast your home will sell is more difficult.
It depends on factors like the housing market, timing, condition, location, price, and method of sale.
We’ll give you the steps to make the best decision in your personal situation.
What Is the Best Way to Sell a Home?
There are three ways to sell a home:
- Through a real estate broker
- By owner (FSBO)
- To an investor
Most people hire a real estate broker, a process that is quicker than selling by owner but slower than selling to an investor.
While you can make more money selling by owner, you also need to understand the process and be willing to do the work.
If you need to sell quickly and will accept a little less money, selling to an investor is usually the best option.
What are the pros and cons?
If you’re not in a hurry and you understand real estate laws, negotiations, and marketing, you may want to sell your own home.
If you want someone to guide you through the legal process, negotiate with buyers, and market your home, choose an experienced broker. If you want to get out quickly and simplify closing, selling to an investor may be a good idea.
How Long Does It Take to Sell a House On Average?
Zillow, the leading real estate marketplace, says homes in the United States stayed on the market from 65 to 93 days in 2018.
In addition to the days from listing to closing, sellers often spend weeks prepping, staging, and filling out paperwork before the house makes the multiple listings. It usually takes around 30 days from an offer to closing, but that time is included in the average number of days on market.
How does DOM affect a real estate market?
The days on market (DOM) is the average number of days a house stays on the market before selling. The number varies in different situations and neighborhoods, and local realtors can easily provide quotes.
You can also figure DOM yourself by calculating the days from listing to pending for homes in a given month, adding the houses together, and dividing the sum by the number of homes.
Why does DOM matter?
The longer a house sits on the market, the more it costs the seller. In addition to the usual cost of selling a house, sellers need to consider these expenses:
- Maintenance
- Cleaning
- Staging
- Emergencies
- Utilities
- Insurance
- Mortgage
Buyers want clean, well-cared for homes that show well and have good curb appeal. This means you need to keep it clean, stage it to make it attractive, make repairs, and pay for insurance and utilities.
Because unoccupied homes are susceptible to vandalism, most insurance companies require a separate policy or rider that is more expensive than ordinary home insurance.
What does fair market value mean?
Buyer and seller must know how to determine fair market value of house. According to Bankrate.com, the fair market value can be found in several ways:
- Comparison with other properties
- Professional appraisal
- Use of a third-party website
- Averaging previous sales
The fair market value may not apply in distress sales, liquidation, when deed is given to prevent foreclosure, or if the property is taken to avoid being sold.
How Does For Sale By Owner Work?
If you want to know how to sell your house yourself, an article in March 2020 US News & World Report provides an excellent guide to the basics of doing it “the right way.”
First, you need to do the research and decide whether the process is right for you. Then, you need to set a price, prepare your home, and prepare to take a neutral stance with buyers.
Depending on your knowledge of the real estate market and legal issues, you also need a real estate attorney to advise and assist with closing documents like title transfers and mortgages.
Regulations vary in different states, and some are more complicated than others. You may, however, be able to hire by the hour or pay a onetime fee.
You also need to know how to negotiate a home price. Merrill Lynch says offers are the way buyers show they’re interested, and counteroffers are the key to successful deals. Know what you want, but be prepared to receive an offer for less.
You have several ways to make counteroffers: price, date of occupancy, terms of the sale, and contingencies. Price is often the primary concern, but you can also negotiate the terms of the loan to make the deal more appealing to you and the buyer.
Remember not to sign the contract until you’re certain you’re ready to take the offer.
How to Sell Your House to An Investor
If you want to know how to sell a home fast, talk to a real estate investor. In an online post, Forbes Magazine says it’s a misconception to think real estate investors are out to take advantage of homeowners who need to sell quickly.
Investors are, it says, many times the best answer in situations like these:
- Inherited property to out-of-state owners
- Property that hasn’t been well-maintained
- Senior citizens who need to leave quickly
If you are selling your house to an investor, talk to several, check out their reputations, and understand how the process works before you start to negotiate.
You can also meet with as many investors as you like and compare their offers. The good ones will explain exactly what to expect, and they won’t pressure you to sell.
You won’t have to worry about making repairs or staging your home, but you may need to leave more quickly than you would with a traditional sale.
An investor will be less emotionally invested in your home than you or buyers who plan to live there, making the transition easier. They may also be willing to help you remove furniture or take care of last-minute business.
How Long Does It Take to Sell a House After the Pandemic?
The market responds to local and global events, and the Washington Post says the coronavirus could leave lasting changes.
While the crisis lowered the interest rate, it will also likely affect the amount of required down payments and credit score limits. Virtual showings have grown more popular, and selling to investors may become even more appealing.
How Is the Real Estate Market After Coronavirus?
The real estate market responds to local and global events, and the Washington Post says the coronavirus could leave lasting changes. While the crisis lowered the interest rate, it will also likely affect the amount of required down payments and credit score limits.
Virtual showings have grown more popular, and selling to investors may become even more appealing.
Realworthnetwork.com analyzed the Dallas real estate market in early 2020 and listed it in first to fifth in best cities for buying houses, growth, families, and jobs.
It also placed #10 in best places business and careers and #4 in best states for growth. The information was collected before the pandemic and will be updated.
The question of how long it takes to sell a house in the Dallas/Fort Worth area and how the pandemic will affect the market is still unknown. Experts vary in their interpretation of the fallout, and changes are evolving quickly.
The Take-Away
Whether you sell your own home, list it with a realtor, or sell to an investor, you need to understand the real estate market to get the best price.
For sale by owner requires a major investment of time and research, and listing with a broker provides more help but involves a commission.
Selling to an investor may be the best option if you want the money as soon as possible, have a home that needs repairs, or need to make a fast move for a job, divorce, or other reasons.
If you want to find out more about selling to a real estate investor in the Dallas/Fort Worth area, fill out this quick form or call us at 214-272-2177 to get an offer on your house.
You can also visit our blogs for articles on everything from how to sell your Dallas, TX home fast in 5 easy steps to how to deal with mortgage problems.