Deciding to sell your property is a big decision. Not only is it a commitment to go through an often lengthy (and sometimes stressful process) but it guarantees to answer the question that you have no doubt been wondering for years – what is my property actually worth?
But what if you go to market, and there are no takers? If your property has been listed for some time and is not selling, then several factors could be working against the sale of your property. And even if you haven’t put your home up for sale just yet – read on to make sure you avoid these costly mistakes.
It is human nature to want the best price for your prestige property. But to ensure a successful sale, you need to be realistic. Often, eager sellers will choose to go real estate agent that offers the highest appraisal value of the property. Initially, this can seams most appealing. The agent believes in your home’s inherent value and will get you the very best price, right? But unfortunately, this could end up having the opposite of the desired effect, taking longer to sell your home, or worse, resulting in a failed listing.
When you engage a real estate agent, you sign a ‘listing agreement’, which gives the agent between 30 days and six months to sell your home for you. An agreement longer than 6 months should ring alarm bells about your estate agent’s confidence in their ability to sell property.
If your property has an unrealistic quoted sales price, it will likely remain unsold. The rule of thumb is that the longer your property remains unsold, the less enthusiastic buyers will be. If your property is unsold within the agreed life of the agreement, it is considered a failed listing.
This scenario leaves you in an unenviable position, vulnerable to ‘lowball’ offers from often less than serious buyers. Worse yet, you will then need to begin the process once again with another agent. At this point, the new agent will also be influenced by the previously failed listing. Concerned by its lack of prior performance and the tainted view that other buyers with an eye on local real estate will likely have – they will almost certainly recommend that you re-list at a lower price to generate renewed interest.
You can often see the signs of this in listing descriptions. When a new home hits the market, it tends to come with many unfounded claims like ‘the first to see will buy’ or ‘investors dream’. However, as a looming failed listing approaches or another agent takes over, this terminology often becomes ‘the seller wants this gone’, ‘motivated vendor’ or even worse – ‘all offers considered.’
All information contained on this website is for your reference only. You should always make your own enquiries and seek independent legal advice in respect of any information about real estate law and the purchasing of real estate and related subjects. This website may contain hyperlinks to websites operated by parties other than Mercer & Cooper. Such hyperlinks are provided for reference only and Mercer & Cooper does not control such websites and is not responsible for their contents.