Why a Home's Market Time is Crucial for BOTH Buyers and Sellers

Short and simple. Market time usually translates into money saved or money lost, depending on which side of the transaction you are on. It can also give you a clue to urgency.

The definition of "Market Time" (MT) or "Days on Market" (DOM)  is the length of time that a home is available for sale or the amount of time a particular home takes to sell, and is measured in days.

Market time is always on Realtor's listings, however some Realtors opt to remove that field from the public handout they give to buyers. You can find it on most any MLS sheet by looking for "MT" or "DOM", but only if it has not been removed from your data sheet. The one small glitch is that if you do see it on your MLS handout (if you can find it) is that the market time that is listed is only for that listing. If the home was on the market previously, you won't see an accumulated market time for that home, which is very important.

Some Realtors will cancel a listing, and put it back on the market immediately to hopefully attract buyers. It is against our MLS regulations, but agents do it anyway. The market time would not be accurate in that instance. Then again, some homeowners switch Realtors after their home failed to sell. That listing would come up as "new", and with a short market time which would also not be accurate.

Realtor.com shows Market Time  information on listings as "Days on Site", which can be a few days off, but you still get the general idea. Zillow also shows this figure as "On Zillow" which is also approximate, and "Yahoo Real Estate" shows you the listing date, but none of these sites accumulate market time for prior listings on the same property. Your Realtor must do the research on this. Incidentally, you won't find Market Time information at all on Trulia.

The Money Factor and The Bottom Line:

The newer the listing, the less likely it is that the seller will negotiate on price and/or terms. Remember to have your agent perform a Property Listing History report so that the information on DOM or MT is accurate. The longer the home has been listed for sale, the more probability there is for increased negotiations. Sellers- this is one VERY good reason to price your home properly right from the start!
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A detailed market analysis in today's real estate market is NECESSARY!

It's time.... You've contacted an agent to do a price analysis of your home, and they bring you a nice little "fluffy" CMA  that has a few homes that are on the market, a few that are under deposit, and a few more more that sold, all spiral bound, in full color, with the marketing plan built right into it.

All great, but is it enough information to price your home correctly? Probably not. First of all, those pre-packaged market analyses are completed at the touch of a few buttons on a computer program without a lot of thought process going into it. Furthermore, some of thesse programs only allow three to six comparables per listing status.  (active, pending, and sold)

Even if the agent hand picks the comparables for you, the program itself has its limitations. The whole presentation might look lovely, but the accuracy of pricing may be a whole other ball game- and then there's the standard marketing plan that will sell every house in town which is nicely included in your presentation with pretty graphics.  Even a novice knows that the marketing plan that is used to sell the house next door cannot be correct for your home, too.

A market analysis that shows just five or so listings in different status categories does not indicate a price for your home. Rather, it indicates some kind of average for the listings chosen.  I do not consider those a real pricing analysis, sorry.

Real CMA's are kind of boring, face it- unless it's my animated self going over all of the information for you!  If you happen to have an agent come over who gives you one of these fluffy CMA's, use it as a placemat. It's not worth anything else.

A market analysis should be so detailed  that even YOU don't have to guess as to what the price of your home should be. It will be inherently obvious- no guessing required. If you want to know the true price of your home in today's market, contact me. No fluff unless you want it, no hard sales tactics, just correct information. :)

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Which is better to find out my home's market value, a CMA or an appraisal?

What's the difference between a CMA and an Appraisal?

Both a CMA (Comparable Market Analysis) and an appraisal are important to determine market value. Which one you choose for your present needs is up to you. You may require both in some circumstances.

When a  REALTOR performs a CMA, which is comparison of a variety of active listings, pending listings (to see how the market is trending)  and sold listings within the past six months as they can best compare to your home, with adjustments as necessary. The agent may NOT quote an exact price, but must give a range of value. There is no cost to this service- the agent  hopes that if you decide to sell, that you will hire them. They will also give you a detailed marketing plan including positioning your home in its best light in the marketplace.  Take note: Some agents are starting to charge fees for  CMA's. Ask before you invite them over. CMA's can range greatly in pricing from agent to agent, given that agent's experience and expertise in pricing. It is important to meet with an agent familiar with your neighborhood and town.

When you hire an Appraiser to give you a price on your home, or evaluation, that appraiser will perform much the same research as an agent, however he/she is also required to use a standardized form, which holds more information thatn most CMA's. Another difference is that the appraiser will typically only use what they determine are the three most relevant active listings, and three most relevant sold properties within the last six months, within a specific radius guideline.  An appraisal will have an quoted market value price- rather than a range,  additional photos,  your Schedule A from the deed (metes and bounds description),  the volume and page number as recorded in town hall of your purchase,  standardized calculations and adjustments, mortgage amount, and the reason for your appraisal request clearly on the form. Expect to pay anywhere from $300- $600 for an appraisal, depending on the type of home you have and where it is.

Both Realtors and Appraisers are licensed through the state of Connecticut and must complete continuing education to maintain their licenses. Both can give you very accurate opinions of value. It is imperative  that no matter which professional you hire, that you make sure that they are very familiar with your area. I sometimes see banks  hire appraisers for properties where the appraisers that they send out live as far as 50 miles away. They just can't possibly know your area well enough to do the best job. Local Appraisers are best, if you need to go that route.

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Westport CT Real Estate Market Statistics also on Westportnow.com

I am pleased to announce that my Westport CT Real Estate Weekly Market Statistics will also be available on www.WestportNow. com in a new affiliation forged yesterday with Westport's best online news source.

WestportNow is Westport, Connecticut’s  24/7 news and information source, offering insights into Westport-related news and news of interest to Westporters. Founded in March 2003, it was a pioneer among non-newspaper, non-broadcast professionally written and edited community news sites in the nation. Since then, it has grown rapidly and now attracts more readers on a weekly basis than any other print or online Westport-based publication.

Gordon F. Joseloff, publisher of WestportNow, is an award-winning veteran journalist who reported from London, Moscow, Tokyo and other world capitals for United Press International and CBS News for more than two decades. Joseloff was editor as well as publisher of WestportNow from its founding until November 2005 when he was elected first selectman (mayor) of Westport, a southwest Connecticut shoreline community of 26,000. (See www.westportct.gov)

How does market time affect pricing on a house for sale ?

When you are looking at houses, pay attention to the market time for that particular home when you look at it. That number is pretty much hidden in plain site at the top of your MLS listing fact sheet, and it would appear as trivial as MT 156. As a buyer, you may not be aware that MT 156 means that the market time is 156 days on that listing.

Why would this matter to you, as a buyer? Two big reasons! SALES PRICE and TERMS OF SALE I am assuming that your agent would have been educating you as you are looking at homes as to what the average market time is for a property in the town(s) that you are interested in.  If the average market time in your preferred town is 75 days, well then, you may have an built-in opportunity for additional price negotiations. You may also be able to negotiate terms that are more agreeable to you.

This involves some research from your agent, like checking on the homeowners financial status, the loan status on the property, finding out the reasons for the move from the listing agent, the sellers motivation, whether or not there have been previous offers, and checking the listing history of the house.

I conduct this research and pay membership fees to various sources  to find out this information, some of which is not readily available or easily available to the public.  Obtaining  information  from the listing agent is quite helpful, and most llisting agents will tell buyer agents about the sellers motivation. Honestly, I feel that is a breach of  fiduciary responsibility that I do not cross when I represent a seller - but, when I represent a buyer I do not have a fiduciary responsibility to that seller, so my loyalties are with my client.

Knowing town statistics and market data besides having a market analysis on the home you want to buy is very important. That is why I include them for  Easton, Fairfield, Norwalk, Trumbull and Westport on a weekly basis.  I conduct market research for  other towns in my service area, I just do not publish them online. ... and truly, you shouldn't ever have to ask your Realtor for this information- if you do, it's time to change agents and get the professional advice that you deserve.