One of the first things a buyer will ask an estate agent when offered a property is “How long has it been on the market?”, and with good reason. Buying a property is a large transaction and it takes courage to commit to undertake such an apparently huge decision – often with very little support other than pure instinct.
One of the most persuasive and apparently reliable indications as to the suitability of a property is to check out whether other people have expressed an interest. There is great comfort in knowing that you are not the only one who would like to buy the property.
Once people hear that others have expressed an interest, then everyone seems to want the property, as the power of “social proof” kicks in. This competition can often stimulate a quick sale at a high price and usually occurs when a property is attractively priced in relation to other properties available for sale and is new to the market.
Of course, the opposite is also true. When the price of a property is overly ambitious, the excitement that should surround a property that is new on the market is reduced, and it can begin to go stale. This is when nobody has made an offer and the property is seen to be repeatedly advertised. When buyers find out that it is no longer new on the market they think “Well nobody else wanted it – perhaps we are making a mistake.”
So our advice would be to position your property as one of the best available in its price range from day one. This will prompt interest and encourage asking price offers from qualified buyers. Under your agent’s advice, you should then have a choice from the buyer, resulting in a fast, reliable, sale at the highest price the market will pay.
Neil Newstead FARLA MNAEA
CEO – Oakfield Estate Agents