Once the decision is made to put a house on the market, many homeowners wonder, “How quickly do most homes sell?” This question is tough to answer due to the ebbs and flows of the real estate market. Major or minor swings can lead to a strong buyer’s or seller’s market that can affect how fast properties sell.
The real estate market of the Lake Placid region in the Adirondacks has been steady recently, even with the increase in mortgage rates. The Adirondack Tri-Lakes area around Lake Placid is a popular vacation destination. It offers privacy and remoteness as well as easy accessibility from the major hubs around New York City. The increase in mortgage rates alongside the area’s popularity as a vacation destination has lead to a softer seller’s market than market trends during the height of the COVID pandemic.
With the softer seller’s market, properties are still selling relatively quickly if priced correctly. At Adirondack Premier Properties, we are still seeing some properties going under contract within a week of listing. Also, an occasional listing may go for a little above listed price if it is in a sought after location.
Once these properties go under contract, it has typically been taking between 30 and 60 days to close. Amount of time to close comes down to contingencies attached to the agreement between the buyers and sellers. The less contingencies, the quicker the property will close.
How quick a property sells can come down to a few different factors including price, time of the year, condition, current market and local laws/regulations. Read on for insights from our expert ADKPP team to determine how quickly your home might sell.
5 Determining Factors – How Quickly Do Most Homes Sell?
1. Price
Price is always the biggest factor when it comes to listing your property. Talking to a knowledgeable real estate agent about how to price your property will give you a head start on selling. If you overprice your property, it can lead to it sitting on the market for longer than you would like.
The longer a property is on the market, the more potential buyers will question if there are unseen or hidden issues with the property. Also, as a rule of thumb, land and luxury properties can generally take a little longer to sell. These types of properties require finding the right buyer, so don’t be surprised if it takes a little longer than the average property.
In the Adirondack market, we have seen some properties listed slightly under current market value reach a higher price. A situation like a best and final offer may take a property’s price to the originally desired price or even higher than expected. This does not happen every time but offers a chance to test the market especially in hot or attractive areas.
Slightly underpricing a property could also lead to additional showings. As home buyers look for a property within their budget or slightly below budget, they may find their way to your underpriced property. These types of buyers are often hoping to use additional money left in their budget to set the property up how they want it.
2. Time Of The Year
Depending on your location, the time of the year could really affect your personal answer to “how quickly do most homes sell?” Certain areas of the Adirondacks are more seasonal than others. This could lead to your property sitting on the market for longer.
An example of this is listing a seasonal property in the middle of fall and hoping to sell before winter, when the property has already been closed up for the season. Our office has successfully sold closed properties, but it can be more difficult. Most buyers want to view or inspect the property. If they do decide to buy, they will generally ask for a stipulation to view the property after it opens and to inspect it before closing the deal.
The Lake Placid region offers year round activities so our market generally stays steady throughout the year. There is typically an increase in interest during summer and winter months when larger events and activities are held throughout the community and attracting a lot of visitors. Check out our blog on the best time of the the year to list in order to have a better idea of when to list your property.
3. Condition
If your goal is to sell immediately when you are trying to figure out how quickly do most homes sell in your area, getting your property in the best condition possible is your next step. A property that is priced right and listed at the best time of year will have the best chance of selling fast if it’s in tip top shape. Condition is probably the second biggest factor for home buyers.
Many buyers seek properties that will require minimal updating and that are in good enough shape to move in right away. If you are looking to sell your property quickly, do a in-depth review of the current condition of all aspects of your property. Make a plan to address any issues that you turn up before you list.
Start with the most expensive systems to repair including heating, water, electrical and roof. Make sure that all of these big ticket items are in working condition and have been serviced or repaired. If you are meticulous about servicing, these major systems you should be good to go. Even so, having them freshly assessed and serviced will help you get a good picture of their health today and avoid surprises at the buyer’s inspection.
Next, walk through your property with an eye towards cosmetics. Most buyers are very visual, so any blemishes like chipping paint or damage throughout the home could cause them to doubt how well the property has been maintained. If anything looks rough to you, cleaning up all the little details that could turn off buyers will pay big dividends.
Clean up any messes or rough spots that have been lingering for a while, and do all the small things you have been putting off, like changing light bulbs. A random light bulb being out on a chandelier is not going to make or break selling a home, but when entire lighting strips are not working, it could become a big deal. A potential buyer would question whether there is an electrical issue.
If a buyer has concerns but still moves forward, the inspector will provide a better overview of the health of the property. With this in mind, it is the inspectors job to mention anything that is faulty. Common things that are turned up could include lighting, wiggly handrails, or any thing else that may be slightly off from normal. Catching and taking care of these issues ahead of time could save you the hassle of the buyer requesting a credit to repair these issues.
4. Current Market
As stated above, the current market can affect your specific situation in determining how quickly do most homes sell in your area. If you are in a buyer’s market, the large number of properties on the market will lower your value. Buyers have more options and opportunities to find a property that best fits their needs.
On the other hand a seller’s market has fewer properties on the market. Your property may be sitting at increased value due to a smaller selection for potential buyers. Less selection could lead to buyers giving up on some of their wants or ideal property qualities in order to be able to purchase in your market.
Interest rates also come into play when it comes to the current market. During the height of the COVID pandemic, there was a real estate market boom. Rates were around 3% which led minimal mortgage interest payments for buyers. As rates increased to over 7% with pandemic recovery, the market began to slow down due to the doubling of the interest rate.
Interest rates doubling causes a major change overall mortgage payment for buyers who are financing. For example, a $400,000 30-year mortgage at 3% would be just under $1,700/ month while at 7% it would be just under $2,700/ month. This is a major difference for most people’s finances to be able to comfortable absorb. Many will hold off on purchasing a home until they feel more comfortable with the monthly payment.
5. Local Laws/ Regulations
Sometimes local laws and regulations come into play when determining how quickly do most homes sell currently in your area. Our office has consistently seen a change in buying practices in regions where new short term rental (STR) regulations are put in place. Any potential buyers who were counting on a rental income may immediately dismiss properties in an STR regulated area.
Many potential home buyers looking for a second or eventual retirement home may take a step back in an STR regulated neighborhood. Some of these types of buyers plan to rent their property in order to cover expenses. New STR regulations have slowed purchasing in certain neighborhoods. Others have seen an overall decreasing pricing trend as owners price lower in order to sell.
Figuring out how quickly most homes sell in your area can be a tough task. Calling on the help of an experienced real estate agency to help guide you through the process can make a huge difference in how successful you are in selling your property within your desired time frame. Contact us at Adirondack Premier Properties today at 518-523-3333 to get started with your listing!