Why do agents bang on about days on market and what does that actually mean for sellers?
The short answer is, the longer it takes to sell your property, the more heavily discounted your selling price is likely to be.
At the moment, property in Perth takes on average 70 days to sell. The average discount for property sold in 70 days is 7%.
So if your property was initially listed for $1million dollars and took the average number of days to sell, being 70, it would most likely have sold for $930,000, That’s $70,000 less than what you were originally asking and that’s a lot money.
It’s pretty simple. Agents that consistently sell property in the least number of days are likely to be selling those properties for much higher prices than agents that take longer.
Your price does not go up the longer you are on the market.
Your peak buyer hits on your property are in the first 3 to 5 days of it going online, and your peak bargaining power with buyers is in the first 3 weeks. The longer you take to sell, the more money, time and inconvenience, it costs you.
Whilst it’s a generalisation, it’s probable that agents that take longer to sell homes don’t have the process right from the outset. It might be that they:
- are promising unrealistic prices and pricing the property too high to start with
- haven’t given their clients the right advice on presentation
- have cheap marketing packages which mean the property is being under promoted
- aren’t doing the follow up work they need to with buyers
- or a combination of two or more of the above
Remember, when selling, time is not your friend.
An agent that is consistently selling high volumes of property in less days on the market than their competitors is likely to be getting much better results and their sellers much more money.
Your home is likely to be your biggest asset. The question is, when it comes to selling it, do you want a great result or an average one?
Pay attention to your selling agents days on market. It could literally stop you losing thousands.