Final answer:
Basing the length of a listing term on the time it takes to sell similar properties in the market sets realistic expectations for sellers. It considers average selling times and market conditions, rather than the age of the property. This approach serves as a guideline to differentiate major deals from minor ones.
Step-by-step explanation:
The practice of basing the length of a listing term on how long it takes in your market to sell similar properties helps in setting realistic expectations for property sellers. This is because it takes into account the average time it may take for a property to sell in a particular market, which varies based on factors such as location, property features, and current market conditions. This approach does not rely on the age of the properties but on market dynamics, which can sometimes be inferred from factors such as pricing and the surrounding environment as illustrated by real-estate advertisements.
For example, if a real-estate ad shows a house at a surprisingly low price, this might hint at potential issues like a landfill next door or a factory across the street, which could affect the selling time. Newspapers might list properties once a week, but since homes come up for sale randomly, the listing term should be flexible enough to account for these variations. Using the time-to-sell approach helps differentiate significant deals from less consequential ones, providing a guideline for sellers and agents alike.