“10 Showings, $10,000″ ” Updated
Realtors have a saying: “10 showings, $10,000.”
What that means is, if a home has been shown by 10 agents ” each representing a serious, well-qualified Buyer ” and it still hasn’t sold . . . it’s overpriced by at least $10,000.
Of course, $10k presumes an average priced home (around $270k now in the Twin Cities).
In fact, it would be more accurate to say “3% to 5%” than $10k.
So, at $1 million, the indicated price reduction would be $30k to $50k.
Showings & Market Time
In a balanced market or a Buyer’s market like 2007 to 2011, it can easily take 4-6 weeks to log ten showings.
Today, especially in high-demand Twin Cities neighborhoods at entry-level price points (think, under $400k near the Lakes), a new listing can get that many showings in a week.
Or a few days, if you take into account exposure via pre-list networking and the Broker Open. See, “Have a House/Need a House.”
The bottom line?
It’s obvious, faster, when a home is overpriced in today’s housing market, and savvy sellers need to respond accordingly.
See also, ““Nurse! I Need a Price Reduction, Stat!!”; and “Best Metric for Evaluating Realtors? “Average Number of Showings Per Listing.”
