I have a question for you…

“WHAT ARE THE TWO THINGS YOU THINK ABOUT A PROPERTY THAT’S BEEN ON THE MARKET FOR A LONG, LONG TIME?”

How would you answer that question?

Well, if you ask a genuine property buyer, they invariably answer with “It’s either OVER-PRICED” or “There’s something WRONG WITH IT”.

That’s what twenty years in real estate and speaking to thousands of buyers over the years has shown me. Fact is, pretty much every buyer out there thinks the same way when it comes to a property that’s been on the market a long time.

…And that’s why excessive ‘days on market’ (D.O.M.) generates what is basically the BIGGEST and most UNWARRANTED, NEGATIVE PERCEPTION buyers can have about your home.

Please hear this, any NEGATIVE PERCEPTION buyers have about your home, even though it may be completely unwarranted, will make it very hard for you to get ‘The LOVE Price’.

The longer your home stays on the market unsold, the ‘STIGMA’ (i.e. negative perception) of it being over-priced or something wrong with it, grows. That stigma grows and grows and grows until it becomes a self-fulfilling prophecy, causing your property to be bypassed by ready-to-buy, motivated property buyers. And guess what impact that has on your home’s price? That’s right. It artificially pushes your price down. And you don’t want that!!

Here’s the other thing…

This ‘STIGMA’ occurs quicker than you think…

…It starts to grow around week five of a property being ‘on the market’. (When I say ‘on-the- market’, I’m referring to a property that’s been ‘exposed’ to the market via channels like the internet, signage and newspaper advertising.)

Fact is, most of the ready-to-buy, motivated property buyers will look at your property between week one and week three of it going on the market.

If you haven’t sold it by week five or six of going on the market, you have a big, big problem on your hands.

Here’s why…

There are 2 TYPES OF BUYERS. One you’ll want. The other will waste your time. Here’s a brief description of both…

‘A-BUYERS’ are your BEST buyers. Here’s a list of their attributes:

  • They’re ready, willing and able to buy now. That means they’re well researched. It also means they’re now 100% committed to the move. And they’ve spoken to their bank if borrowing money and have their finances all in order.
  • Being ‘ready, willing and able’ means they’re in a good position to make a positive ‘BUYING-DECISION’.
  • An ‘A-BUYER’ will often make a buying decision within 30 to 60 days give or take (provided stock levels of property on the market are normal).
  • ‘A-BUYERS’ focus predominantly on the new listings coming onto the market, while being less receptive to properties that have been on the market for what they perceive as being a long time (i.e. 5 weeks or more).
  • When your home is listed on realestate.com.au and/or domain.com.au, the D.O.M. clock starts ticking. (Every week that goes by without receptive ‘A-BUYERS’ inspecting your home, the less likely it is that they’ll inspect or buy your property.)
  • The majority of ‘A-BUYERS’ take a rational approach to their buying decision to begin with. Or at least that’s what they try to do.
  • The trick is to give them a ‘rational reason’ in regard to price why they should look at your property.
  • Losing these ‘A-BUYERS’ is where the STIGMA starts to set in.

‘B-BUYERS’ are basically tyre-kickers. Here’s a bit about them:

  • All other people looking at your property fall into the ‘B-BUYER’ category.
  • ‘B-BUYERS’ are in ‘RESEARCH-MODE’ and because they’re still trying to understand values and working what they want and what they can and can’t afford; they’re usually not ready to make a ‘BUYING-DECISION’.
  • Their research is influenced largely by their conservative budget.
  • The vast majority of people looking at property online are ‘B-BUYERS’.

Before you can make an informed decision about which ‘method’ of sale is best for you, you need to consider how you can avoid the D.O.M. STIGMA. Singularly the best method for getting ‘The LOVE Price’ for your home must take into consideration days on market.

The solution comes in the form of attracting the highest number of ‘A-BUYERS’ to your property in the first one to three weeks of your property being on the market.

Here’s why…

If you don’t attract ‘A-BUYERS’ you’ll be left with only ‘B-BUYERS’ who aren’t ready to buy because they’re just in ‘RESEARCH MODE’ and they’re really just “tyre-kickers”.

And let’s say you finally realise you’re expecting too much for your property by week five or six, well unfortunately, it’ll be too late, all of your ‘A-BUYERS’ and even your ‘B-BUYERS’ will have moved on by then.

It’s funny, over the years I’ve heard sellers who are struggling to sell say this… “Won’t they just make an offer despite what we’re expecting?” Mostly they won’t.

They either don’t perceive the value in your property. Or they have become disheartened by how much you’re expecting for it. Or the property simply isn’t what they want.

This is why days on market can be so lethal.

If you want to get ‘The LOVE Price’ for your home, you must avoid the days on market STIGMA. And the ONLY way you’ll do that is by triggering an emotional, HOT-BUTTON response in your buyers so they act sooner.

3 Hot Tips:

  • The longer a property takes to sell, the less likely you’ll get ‘The LOVE Price’.
  • Days on market is THE biggest roadblock a seller faces. If you want the best price for your home, in most cases, ‘The LOVE Price’ sweet spot is in the first two to three weeks your home is on the market.
  • If your home has been on the market for more than six weeks without receiving a reasonable offer or bid, you need to consider withdrawing the property from the market to give it a fresh start with a new agent. Alternatively, your agent needs to ‘re-position’ the property (if your agent knows how) so that it attracts a new group of buyers whose expectations match what your property offers. Don’t assume ‘re-positioning’ automatically means dropping the price either. I’ll be discussing how you can ‘re-position’ your property in several different ways later in the book.

(This is a chapter out of Peter Hutton’s soon to be published book “THE LOVE PRICE: 5-Steps to Triggering an Emotional, Hot-Button Response to Sell Your Home for More $$$$”)

Leave a Reply