As homeowners begin to explore the prospect of selling, there are three main questions:
What’s my home worth?
Where am I going to move?
How long does this take?
Many agents look to historical data like "days on market" to find out how long it will take, but that only tells part of the story.
What's the total amount of time?
In the Los Feliz Hills over the past four years, it takes the average homeowner roughly 85 days from the day the home goes active on the MLS to the day it closes escrow. Before the home goes on the MLS, Sellers usually take 2 to 4 weeks to prepare the home. In addition, 10% of the homes for sale don't find a buyer the first time around.
After being on the market for an average of 100 days, these listings are completely "relaunched", and usually sell on the 2nd attempt. Most homeowners should realistically expect the process to take around 4 months...
Scarcity Drives Demand
Here's a good example: North of the Boulevard (excluding the Estates), there just under 1,300 homes, and roughly 120 listings each year.
This means 1 in 11 homes will go on the market this year. But for the past four years, only 60% of those listings actually close. Even though this statistic brings challenges for Sellers in such a competitive market, the number of homes for sale each year is shrinking which means supply is decreasing. This increases demand which pushes values higher and higher.
Case in Point: The average sales price in the neighborhood has increased by $110,000 in just one year. For contrast... if we look at ALL homes in Los Feliz, the odds of actually selling improve by 20%, but the average sales price is $550,000 less than in the Hills. Yes, more money, more problems... but if done right, it’s worth it!