If a property is not on the market for long enough for every potential buyer to join in the competition to buy it, it’s intuitively not possible for any agent to unequivocally say they got the best possible price.
We’ve all seen it - the agent marketing material that proclaims a property’s been “sold in x days” or “sold off-market”. Obviously a quick sale’s being pitched as a good thing, but in reality, is selling in matter of days boast-worthy, or is it actually too soon?
Does anyone really win? Who exactly does a quick sale serve?
Some might say the seller. After all, they won’t have to put up with bothersome open homes every weekend. Less time on the market should equal less stress and anxiety.
Or perhaps you might say it’s good for the agent. In churning out the sales quickly, less time and effort is expended. Even better, it’s a great advertisement for their selling abilities, right? Or is it?
If a property is not on the market for long enough for every potential buyer to join in the competition to buy it, it’s intuitively not possible for any agent to unequivocally say they got the best possible price.
Some agents will say “buyers will pay above market just to secure the property before it goes out to the broader market”, but let’s consider this statement. Why would a buyer want to secure the property before other people have a chance to bid on it? Could it be that they are fearful someone else will pay more? Why else would they be in such a hurry?
Case in hand; Eight weeks ago, another agent in our local area had introduced a potential buyer who was offering $1.6m off-market. “It’s a premium” the agent told the vendor. “No marketing, no opens, they’re just happy to pay above market to make sure they get it.” On our advice, the vendor decided to go to market. Last weekend, we sold the property under the hammer for $1.837m – to that same buyer who two months before offered the “premium price’ of $1.6m. If you asked any seller would they rather chance an extra $100K, or even 10K, in exchange for a slightly longer marketing campaign, I wonder how many would turn it down.
We would also question if a quick sale is really in the agent’s best interest, either. Real estate is about relationships. Put simply, the agent who can meet the most people and form the strongest relationships will be the most successful. In marketing a property for only three days, there are innumerable missed opportunities to connect with more people.
I’m not suggesting for a minute that properties should be left sitting on the market indefinitely. I’m also not saying there’s a set time frame that’s too short. Every property and every vendor is unique. What I am suggesting is that agents and their clients should be well aware that it is possible to exchange prematurely. And that when it happens, it’s not good for anyone.