Everything property related, generally speaking, works in cycles. Within those cycles are more cycles, such as location, each having their own cycles. The property market is, however, resilient, and regardless of cycles, economic or social challenges, some real estate golden rules are always be timeless. These two concepts are such an example.
Q: In the current market, where properties take longer to sell, and if you had to choose, which is more important - price or time on the market?
Price dictates time on the market, so price is always a priority. The true value of a property is directly proportional to the accuracy of pricing by the estate agent.
Getting the price right at the outset is by far the best service an agent can offer a client because getting the price wrong usually erodes the value of the property ultimately by causing the time to sell to be longer than it should be if the property was correctly priced from the start
Q: How does the symbiotic relationship between the two - price and time - create a more favourable sales outcome?
Urgency to sell but this depends on circumstances! The usual factors like an urgent change in circumstances that will create a greater selling need, for example, relocation or financial pressure. Setting the right price at the start elicits the right amount of buyer interest on launch of the listing to the market. If the price is not aligned to the market, buyers reject the value and don’t respond to the listing, and the seller then often ends up taking less after a protracted process.
In many parts of the country, the market remains a buyers' market. Motivated sellers who are well-guided by experienced agents sell their properties within the mandated period.
Q: At what point do you encourage the seller to relook price, if the property is not gaining interest?
We suggest revisiting price sooner rather than later - so within the first few weeks of marketing. Buyer interest peaks at the outset, so if a fresh listing is not attracting buyers then this is often because it is incorrectly priced, and this needs to be addressed quickly to avoid over-exposure and stagnation.
An experienced agent will revert to the seller within the first week or two if the property has not elicited sufficient interest from registered buyers.
Q: In your opinion, does the current market down-value properties?
The market, by definition, will pay the price agreed between a willing buyer and seller at a given point in time. At that time that is the current market value of the property.
There is no such thing as down-valuing properties. If the property is actually, for whatever reason, priced below the true market value, buyers will often compete and the price may escalate towards a higher more market related value. If there is little or no buyer interest then the property does not fall within the parameters of the current market in terms of value.
Q: Is the pricing comparative structure to other properties in an area, working as it should, or are sellers pushing back to gain better value?
Sellers who resist market pricing for better value regrettably often take less than the market would pay if the price was correctly priced at the outset, thereby enduring undue inconvenience and disruption.
Getting the price right in terms of comparables is the one of most important parts of the role that an estate agent plays in formulating a marketing and sales strategy for a seller.
