Some homes get snapped up within days of being listed.
Others sit on the market for months or years before being quietly withdrawn from sale.
So why do some properties sell like hotcakes while others become ‘stale listings’?
Generally, the homes that sell promptly tend to be well-presented, well-marketed and priced accurately. Probably no big shocks there.
But as for the properties that stick on the market, there is often one common factor that might surprise you.
The curse of long tie-ins and overvaluing
UK transaction figures reveal that almost half of all homes withdrawn from sale in March* shared one trait – “blatant overvaluing supported by extended sale agency agreements [of 20 weeks or more]”.
A sale agreement is when a property owner agrees that an agent can market their home exclusively for a set period.
While this in itself isn’t a problem, some agents take it to the extreme, specifying a lengthy timeframe of 20 or more weeks (with a notice period on top).
Unfortunately, extended tie-ins and overvaluing often go hand in hand.
This is because when an agent blatantly inflates a property’s asking price simply to win business, they know buyers will never fall for it.
They also know that ultimately a price drop – or two – will be required to shift the home. Hence, they lock the seller in for the best part of half a year, so they can’t take their business elsewhere while all this plays out.
This wastes time and money, and can also jeopardise a sale altogether (buyers often assume a property sitting on the market for months has major problems, and steer clear).
Stay in control
It’s easy to be flattered if someone tells you that they can achieve way more for your property than you’d ever imagined possible.
But don’t be fooled. Getting locked into a long deal with someone who is just telling you what you want to hear is a recipe for disappointment.
Consider the agent’s trustworthiness and reputation and remember that homes that sell in less than 25 days have a 94% chance of completing.**
In other words, get the price right from the start, and you’re more likely to secure a good offer and see it reach completion.
And, of course, read any paperwork carefully. Always look for the tie-in period and notice period in the contract. If you’re not happy with the terms, negotiate or walk away.
To arrange a free, honest property valuation, call us today.
*Transaction data reported by PropertyWire
**Denton House Research and Twenty EA (based on analysis of 2 million property sales).
