Want your home to fly off the market? You must give it social exposure, Zillow says
Homes listed for sale on Zillow that get more attention from users sell more quickly and for more money because the popularity is often catching, according to an analysis the real estate web site released Tuesday.
Shoppers can use Zillow’s “favorites” feature to save properties they want to visit, categorize, or share with others. And doing so tends to have a ripple effect among other users. The company’s analysis of its records finds that favorites seems to signal a property is desirable to other would-be buyers.
As Zillow ZG, -1.06% wrote in a release, more favorites are “a sure indicator that you’re not the only one eyeing the home of your dreams.”
Across the U.S., homes that receive 30 or more favorites within their first week of listing usually sell in under two weeks, and more than 40% of them sell above list price. In contrast, homes with 10 or fewer favorites take longer to sell and receive less money.
Of course, favorites or no favorites, it’s still a seller’s market.
In June, sales of previously owned homes slid as tight inventory continued to constrain the market, pushing prices to a fresh high.
Also read: Existing-home sales fall in June as prices soar to fresh record
“It’s difficult to sell homes when there are so few available to buy, and the chronic inventory shortage the market has been suffering from—bordering on an inventory crisis at this point—is now more than two years old,” Zillow Chief Economist Svenja Gudell said at the time.
And it’s worth noting that Zillow, which considers itself as a media company not a real estate broker, benefits from greater user traffic on its site.
Still, Zillow discovered some interesting trends in its analysis of favorites ratings. In the majority of metros surveyed, listings in the largest city in the metro area get more favorites than homes in smaller cities in the same area.
|Largest city in a metro area||Median first week favorites||Days on Zillow||Homes sold over ask|
Among select large U.S. metros, the median number of favorites a home in the largest city receives ranged from 22 in Seattle to three in Miami. San Jose, San Francisco, Seattle and Portland all received the most favorites, but it’s not clear whether that’s because those are some of the hottest housing metros in the country, or because they have more residents who work in the technology sector compared to other parts of the country.