Taos Real Estate

What is the cost of listing a home above the current market price, and having it stay on the Taos real estate market longer? I did a study of all of the homes sold in 2009 that had a sold price listed. This isn't to compare our Days on Market with any other real estate areas, as ours do tend to be longer, a lot longer than many markets.

But, how much does listing above true market value contribute to our longer market cycle?  This study can't tell us that.  But, by taking all of last year's sales and grouping them by their Days on Market (DOM) till sold, I can get a percentage of asking price that the group sold for on average.  Below I'll give you the numbers for different groups by their DOM, and how much of the ORIGINAL asking price the home eventually sold for.  This doesn't look at the price at the time of sale, as this obviously could include a number of price drops, making the point I think.  Let's see who got the greatest percentage of their original asking price by time line.  I'll also give the percentage of homes in each DOM bracket of the entire 364 sold.

• 30 or less DOM - 6% of all sold, at an average 94% of original asking price.
• 31-60 DOM - 7% of all sold, average 95% of original list price.
• 61-90 DOM - 9% of all sold, average 90% of original list price.
• 91-120 DOM - 6% of all sold, average 91% of original list price.
• 121-180 DOM - 15% of all homes sold, average 89% of original list price.
• 181-365 DOM - 23% of all sold, average of 82% of original list price.
• 366-ALL - 28% of all sold, average of 79% of original list price.

Let's draw some conclusions from this data, and keep in mind that numbers are rounded and there are probably input data errors.  But, we can probably be safe in assuming that:

1. Those who sold their homes in under 60 days, received around 95% of the original list price.  This could be a factor of them just being some of the best homes in great areas, but more likely it's about pricing right for the current market.
2. The next 90 days, going out to 6 months,  cost these home sellers another 4-5% of their original list prices.  It's probably about more negotiation on a price that was a little over market in the first place.  But, it's still about 10% less than they asked.
3. From 6 months to a year, we're down another 7%, and 18% off their original asking price.  In the spreadsheet, the average original asking price for this group was $ 341,030 and the average sold price was $279,736 to give you a better feel for how this looked.
4. Most of the last group fell in a time period of closing 1 to 2.5 years from listing, but some went out almost 4 years.  This group  received only 79% of original asking price.  This is probably a factor of missing the market, and listing just as the home price and mortgage troubles started building momentum.

Note that about 66% of all homes sold last year took a hit of around 11% to 21% of list price, and were on the market from 6 months to 4 years.  If you want to list a home, or you're listed now, maybe this could help you in doing another CMA (Comparative Market Analysis) and changing the price if you want to get it sold.

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