3 Reasons Why You Don’t Sell or Lease
By Hayden Groves
The current market is tight on supply and high on demand with rising property prices the result. The rental market is equally experiencing supply constraint and with limited availability, rents are rising too. In such conditions, almost any property that comes to market to buy or lease is fair game, snapped up by buyers and tenants at a record pace.
In markets such as these, it is unusual to see a property languish on the market for a substantial length of time. According to reiwa.com, median selling days are at 11, compared to 23 days a decade ago and 58 days as little as four years ago. So, if your property since listing on reiwa.com remains unsold after 11 days, you might begin to question why.
In itself, not selling in under a fortnight is not necessarily a problem. Your property is still relatively fresh to the market and if, for example, a major sporting event, inclement weather or long weekend coincide early in your campaign, your buyer simply may not have found your property yet.
Such a strategy will always deliver a poorer result
However, after you’ve been on the market for more than 60 days, there are generally three major reasons why you’ve not achieved a sale.
Firstly, you may have chosen the wrong agent to represent you. Choosing an agent based on the cheapest fee, choosing an ‘out of town’ agent or one that’s carrying too much stock are common reasons why your agent isn’t able to expediently attract a buyer. Choose an agent that carries a strong reputation, deliberately takes on a manageable number of listings and is an expert in their local market.
Secondly, your marketing campaign may have missed the mark. In this market, buyers are plentiful and some sellers are tempted to try and sell ‘off-market’, without a well considered and implemented marketing campaign to attract every possible buyer, opting instead to rely on an agent’s data base of buyers. This can often deliver a good selling outcome, but leave you feeling like you may have missed the chance of a better outcome had all the buyers had an opportunity to compete. Choose an agent that can deliver both, qualified buyers known to them as well as a brilliant marketing campaign that gives the best chance of a premium result.
Thirdly, and the most common reason, is sellers and owners have a desired price outcome that is out of step with the market. Holding out for a price or rent that is well above the reasonable market price will deter buyers and tenants from engaging with the property, simply moving onto the next one that has a more realistic price tag. Use caution in choosing an agent that gives you a ‘happy price’, one that they know if above the market with a strategy to ‘work you down’ after being on the market for a prolonged period. Such a strategy will always deliver a poorer result than one that gives buyers the chance to compete for your property in an open market where price expectation is reasonably aligned with market sentiment.
Right now, deploying the right strategy and choosing the right agent should have you sold or rented in a little over a week.
