When buying or selling a home, one term you’ll frequently hear is “time on market.” But what does it really mean, and why should you care? Let’s break down this important real estate metric and see how it impacts your buying or selling journey in Minneapolis.
What is Time on Market?
Time on market (TOM) refers to the number of days a home has been listed for sale before it goes under contract. It’s a crucial statistic for both buyers and sellers because it gives insights into the current state of the market. A shorter time on market typically indicates a seller’s market, where demand is high, and homes are moving quickly. Conversely, a longer time on market can signal a buyer’s market, where homes are taking longer to sell, giving buyers more negotiation power.
Why Does Time on Market Matter for Home Sellers?
For sellers, the time on market is more than just a number; it’s a clear indicator of how competitive your listing is. A home that lingers on the market too long can lead to lower offers or buyers wondering if something is wrong with the property. In Minneapolis, where the market can fluctuate with the seasons, it’s essential to price your home competitively and present it well right from the start to minimize time on market.
Here are some tips to help reduce your time on market:
- Price It Right: Homes priced competitively tend to sell faster. Be sure to consult with a real estate professional to set a realistic price that reflects the current market conditions.
- Staging and Photography: First impressions matter. High-quality photos and professional staging can make your home stand out and attract more potential buyers.
- Marketing: A strong marketing strategy that includes online listings, social media, and open houses can increase exposure and interest.
Why Does Time on Market Matter for Home Buyers?
For buyers, time on market can be a great tool to assess a property’s desirability and potential negotiation leverage. Homes that have been on the market longer might offer more room for negotiation on price or terms. However, be cautious—while a longer time on market might signal an opportunity, it’s essential to dig deeper and understand why the property hasn’t sold yet.
Some key points for buyers:
- Opportunity to Negotiate: Longer time on market can mean the seller is more willing to negotiate, potentially leading to a better deal.
- Inspect Carefully: Ensure you understand why a property has stayed on the market longer. Are there maintenance issues, or is it simply overpriced?
- Consider Timing: Homes listed during slower seasons might naturally stay on the market longer. This doesn’t always reflect poorly on the property.
Current Trends in Minneapolis
In Minneapolis, the real estate market has seen shifts in recent months. Seasonal changes, economic factors, and interest rates all play a role in the average time on market. Right now, we’re observing that well-priced homes in desirable neighborhoods are still moving quickly, but properties that don’t meet buyer expectations or are priced too high can see extended listing periods.
Whether you’re buying or selling, working with an experienced real estate team can help you navigate these market trends. Understanding the time on market helps set realistic expectations and can be a valuable guide in your real estate journey.
If you have questions about the time on market or need guidance buying or selling in the Minneapolis area, feel free to reach out to me! I’d love to help you navigate the local market and achieve your real estate goals.
– Jordan Eatherton, Apex Realty Team
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