This is how deals typically get closed
Oct 26, 2023
Whether you’re buying or selling, the process is going to be stressful. You might experience a lot of hurry up and wait, followed by a flurry of activity. The bad news is that as much as we try to prepare you for the process, it will inevitably be challenging at times. The good news, though, is that knowing the timeline (and understanding what’s “typical”) can lessen the anxiety. No matter what the challenge is, someone has likely dealt with it before. So take heart and read on to learn what you might expect from this process but keep in mind, each transaction is unique so your mileage may vary. Much of these stats reflect the realities in the rest of the country, since NYC is so unique, but many of the overarching patterns can still be seen here.
Timing and Preparation:
On average, sellers spend around eight months from the initial thought of selling to closing the deal. This includes three months of having the home listed on the market (this, of course, varies based on the home’s desirability and the market). But, at some point, all the hard work pays off, with 90% of sellers receiving formal offers.. 52% will receive two or more offers. Making improvements to the home significantly increases the chances of receiving multiple offers, with 52% of those who make one to three improvements and 65% of those who make four or more renovations receiving two or more offers.
Sweetening the Deal:
During negotiations, it’s common for sellers to make concessions or compromises. In fact, more than three-quarters (76%) of sellers have to make at least one concession. The most popular concession is lowering the sales price, chosen by 34% of sellers. Interestingly, millennial sellers are the most likely to make compromises or allowances (85%), followed by Generation X (75%), Baby Boomers (67%), and the Silent Generation (70%). Millennials are also more inclined to make major repairs or improvements to ensure a successful sale.
Changing the List Price:
Receiving multiple offers doesn’t guarantee a smooth sale, since some offers inevitably fall through. Millennial sellers are the most likely to experience this, with 61% reporting at least one offer falling through. In response, 60% of sellers change the list price of their home at least once. Millennials are the most amenable to changing the price (75%), while Baby Boomers are more likely to stick with their original list price (55%). First-time sellers are also more likely to alter the list price (65%) compared to repeat sellers (52%).
Pricing a home accurately can be challenging, and 50% of sellers end up selling their home for less than the list price. However, younger sellers have a higher chance of selling above the list price, with 30% of millennials and 24% of Generation X sellers achieving this. Location plays a role, as urban areas see homes selling over their listing prices 29% of the time, compared to 20% in the suburbs and 13% in rural areas. Selling a home involves careful planning, preparation, and flexibility. Remember, each home-selling journey is unique, and understanding these insights can empower sellers to make informed decisions and achieve their desired outcomes.