Did you know May is the busiest month for real estate in Denver? There are more offers written and properties that go under contract the first weekend of May than any other weekend of the year! This has been true for years. With May being so busy, then it’s a great time for your client to list their home, right? Yes! But the details matter.
So, what’s the issue? There is a particular weekend in May that we see a 22% drop in contracts. There is another weekend in May we see a 40% drop in contracts!! So, while May is a great month to sell a home, if you choose the wrong weekend to go on the market, you could lose thousands on the sale!
In an open market, value is set by the intricate balance between supply and demand. In real estate, this is sellers (supply) and buyers (demand). So, a lower supply of homes puts upward pressure on prices and a higher supply of homes puts downward pressure on prices. And conversely, a lower number of buyers puts downward pressure on prices and a higher number of buyers puts upward pressure on prices.
To make life easier, just think of it this way. When you have a listing, you want exposure to as many buyers as possible. When you have a buyer, you want as many homes to choose from as possible!
As we look at months like May, when you list really does matter. If you hit the market the first weekend of May, then you’re getting exposed to the MOST buyers possible. However, if you list over Memorial Day weekend, for instance, you’ll have only 60% of the activity and significantly less chance of getting an offer, let alone multiple offers that would drive up your price! The other low weekend in May? Mother’s Day.
Looking at last year in the Denver Metro, 1,056 homes were listed over the Memorial Day weekend. This represents 1,056 sellers who didn’t get good advice from their agent on how to get the most showings and buyers. At a minimum, they should have chosen the weekend before or the weekend after. It could mean the difference between listing a home and selling a home. Now, 41% of those homes still went under contract in less than a week (flash sale). Which sounds good until you compare that to the 50% of flash sales from just a few days earlier! A few days difference meant 9% or 95 sellers who could have sold their home in 1 week but didn’t. Plus, fewer showings mean fewer buyers bidding for your listing which causes you to get a lower price. And for the 59% of homes that didn’t sell that first weekend? They now have an additional (unproductive) week on the market causing people to wonder, “what’s wrong with it?”. The answer? They chose the wrong agent.
When you’re deciding on when to list your client’s home, the time of year matters, the week matters, and the day matters. It’s often hard to control the time of year. Sometimes, you have to sell when you have to sell. And I’ve found most can control the week and day they go live on the market
By the way, what’s bad for sellers can often be good for buyers! If you have a buyer in search of a replacement home, go on the market the weekend before a holiday weekend and then with their home freshly under contract, go out over the holiday weekend and take advantage of the fewer buyers. You have better odds of not competing and you might even be able to get that home for under its listed price.
Want to know what day of the week is the best day to go live with your listing?? Well, that’s for another blog.
Conrad SmithYour Real Estate Consultant
REALTOR®, BOLD, EcoBroker, CNE, CHRE, ILHM, KW Luxury
Professional Denver Real Estate for the Urban at Heart