The Worst Property Selling Mistake You Can Ever Make
You must have made a terrible mistake if your property has not sold, right?
Common sense may make you think that if a property does not sell, there must be something terribly wrong with it, right? Well that is true statement to a point. In a strong market that homes are selling, there must be something terribly wrong with a home that doesn’t sell. But opposed to popular belief, it’s not always location or condition of a property.
The 1# one reason why a normally attractive home does not sell is not that there is termite damage or pillar damage. It is actually the perception that it has these problems by having too many days on the market. Enquiries dramatically drop off if the home exceeds the average days on market. We see this every week in real estate. This is a well known fact in our industry.
In fact if you’re taking a listing from an agent that has done poor marketing or a bad pricing strategy. The old trick is to take it off the market for let’s say two weeks we call this “giving the property a rest” and then putting it back on the market with new photos and a new price. Buyers will start to think it is a new property, and you’ll start getting new hot enquiry on it once again.
We call this Days On Market or D.O.M.
too many days on market ultimately come down to 2 things;
- not being marketed correctly and listed on all the property portals. This includes really bad photos which I see all the time by cheap agents or by owners wanting to do it themselves and don’t think it’s important.
- Lack of price being displayed on advertising can turn off buyers (when you do this people think you want to much for the property) or for a price displayed let’s say “Offers Over” too high to appoint where the majority of buyers say to themselves “I’m not going to bother to enquire as there is better value on the market right now for that price”
I can understand that you want the best possible price for your home and listing it at a higher price will get you a better price but just think of yourself in the buyers mentality. This is the key to get a higher price for your property.
The worst thing you can do is list at a higher price and start coming down in price as the weeks and months go by. If you look at any property investor magazine they have huge amounts of data and one of the key indicators is vendor discounting.
One of the other key indicators of a desperate vendor, which is another data set in these investment property magazines. This is how smart property investors look for good deals to find desperate vendors that have been on the market way too long and major discounting.
This screams desperate vendor/sellers and investors get excited when they find one. In fact, they have special software that collects data from all over Australia and you can set it up for a particular area and find the percentage of discount properties and set how many days on market you want. Then they’ll pinpoint you and start using strategies to get your property at a basement bargain price.
Sellers may have the perception that keeping their property on the market for longer will get a better sale price. This may be true in some markets but definitely not true in and around seven Hills. You may be thinking “I don’t need to sell right now I can wait around for a better price” this actually damages your chance of getting a better price and can ultimately pressure you to take a lower price as it gets closer to your moving date.
You see investors start watching, waiting and circling their kill like vultures until the pressure/motivation is on you to sell in a hurry. You may be thinking “I would’nt let that happen” but I have seen many times where emotion overtakes logic. Perhaps a sick grandmother is involved, or a divorced couple is really getting sick of each other, and that’s where mistakes are made.
How to avoid this too many days on market and selling to low.
First you need a better than good agent that is for sure. This kind of agent is a seasoned veteran and has seen this a million times over and has a strategy to combat this to get the best possible price. They will help you sell quickly and make buyers climb over themselves trying to outbid each other for your property. We use the “Offers Over strategy” for most properties which has at this time of the market buyers queuing from around the corner (not kidding).
Going back to what causes too many days on the market once you are confident that your property is going to be marketed correctly, and the agent can show you data of all the hits and reviews on your property there is only one thing that would be stopping buyers not enquiring, and it is usually the advertised price of the property. Notice how I said “advertised” that’s right, it is just the advertised price, not the selling price that you want. He is a case study of how we do this every weekend.
“The Price Is Right” it’s not just a game show it is an advertising tool to get you the best price!
You see if you advertise 5% or even 10% lower than the market average for a comparable property like yours you will attract buyers in droves and they will see all their competition at the open home. It’s quite interesting to see especially in this market a line of people trying to get into a small three bedroom home and still queuing at the end of the open home. Some of them give up and will give you an offer and not even bother walking in. We have other agents in our area that don’t use our strategy and get half the amount of people at their open home.
If you want a traffic jam of buyers trying to get into your home or you are sick of your current real estate agent they just aren’t doing it for you give us a call as soon as possible to set you on the right track. This is no obligation, and we are happy to give away free information to make sure you get the best possible price of your property 02 9869 2333.
About Jhai Mitchell
Jhai is an award winning Internet Marketing Real Estate Agent for Elders Toongabbie and Kings Langley. After running his own internet marketing business he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to market themselves online. Jhai is now fixed on one goal. To teach real estate agents that they can market online so much better than they currently are.
Since then he has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. He is a regular guest blogger on TheHomePage.com.au, sharing his expertise of marketing aspects for the Real Estate Industry. His biggest passions are his wife, martial arts, dogs and most of all property.