When selling a property, most people have two conflicting emotions. They desire a quick sale, but if that is achieved, they fear that the property may have been undersold.
Given that you will only sell your property once, it is imperative to get the highest possible price in the market. Is time on the market the key to getting the highest possible sale price though? The answer somewhat lies in the market conditions at the time you are selling.
Time is unemotional and inflexible. In a rising market, time is your friend. Time will help carry the price toward your price goal.
In a falling market, time is your enemy. Time will erode your price. In a falling market, the longer you leave your property on the market unsold, the more time you give it to drop in value
Even in a rising market, a property that sits on the market not selling can become a lemon in the eyes of the buyers.
In such instances, it takes a massive reduction in price to stimulate buyer activity.
Many industry experts claim the key to achieving a successful sale lies in getting the three essential components of your campaign correct. Those components being Presentation, Marketing and Price.
Getting your price strategy correct will do more to achieve a quick sale than marketing and presentation in today’s market.
When it comes time to sell, most people have three agents provide opinions on the possible selling price of the property. The seller will also have an expectation of the price. What can get overlooked during the process of pricing is what buyers think the property is worth?
At the end of the day, the buyers will only pay what they can afford to pay and what they feel a property is worth. To sell a property quickly, the seller’s expectation of price needs to overlap with at least one buyer’s expectation of price. If there is a gap in price the seller needs to adjust their price expectations or find a new buyer.
The maximum interest in a property will usually come in the first 21 days of marketing. If a sale is not achieved in the first 21 to 28 days, the seller will have to consider re-pricing or waiting for new buyers to enter the market. Waiting for new buyers to enter the market can really blow your time on market out. For the success of the sale, in the first 21 days, the agent and seller must establish what the buyers are prepared to pay for the property.
It is OK if bargain hunters don’t like your price. It is not good if the fair minded buyers in the marketplace reject your property on price though. One of the worst ways in marketing a property is intentionally loading the asking price with intent of coming down in price over time. The best buyers will reject the home based on the initial high price and are unlikely to return later when the price has been reduced.
At the completion of marketing your property, if you are unhappy about the price buyers are prepared to offer for your property, just do what many sellers are doing at present, don’t sell.