What happened in October 2010 in Orange County in Real Estate? According to Southern California MLS, agents reported that there were 2,027 homes that closed escrow or “SOLD”.

Of those 2,027 homes the average Days on Market, which tells us how long the home was marketed before an acceptable offer was taken, was 98 days. Those 98 days do not include the 30-60 days to close the typical equity sale. If a bank is involved in a short sale for example, the process can be much longer.

Homes sat on the market for over 3 months before getting an acceptable offer. Even then the final sales price was only 94% of the original list price. In other words the home sat on the market for 98 days and the average seller still took a 6% reduction. And the agent that represented them still got their commission.

In a tough market like this one, shouldn’t the agent you are hiring be willing to put their money where their mouth is? The sad truth is that very few of them will. He claims that if he can’t sell your home in 60 Days at a price that you agree on, he’ll sell it for free. Now, that’s how it should be.

Apparently there are agents throughout the country who make similar offers and are willing to share the risk with the home seller. For once that makes sense to me. Especially since the bar of entry into the real estate business is set pretty low and most real estate companies offer little or no formal training for their agents.

Today is November 7, 2010. With these stats, if you were to list your home for sale today with just any agent, you could expect that the offer you finally accept will be around the middle of February and if you originally listed your home for sale at $500,000 you would accept a final offer of $470,000. In addition you would still likely pay almost $30,000 in commissions bringing your approximate net down to $440,000 and then deduct the other costs associated with selling. Now you’re down to $430,000. Was that the original plan for these sellers? I would guess not.

Both types of homes are great investments that should see nice appreciation in the coming years. Single family homes are becoming more rare as space is quickly being used up in many areas. Condos on the other hand seem to be going up everywhere around any typical city. Whichever you choose, know that you are making a long-term investment in your future. Be smart when it comes to selling your home.

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