An interesting article in The Sunday Telegraph this week highlighted extreme cases of cold listing where properties have been listed for sale for an astounding seven years and four months without selling.
When I saw the title of the article “Inside the Sydney house no one will buy” my instant thoughts are, ‘what is wrong with it?’ Be honest, that’s your first thought too right? But there is nothing wrong with it, dated yes, but flawed, no. So then the second thought is also a common one, ‘Must be overpriced.’ Did you think this also?
Luxury properties do take longer to sell but this property highlights the absolute necessity to get the price right when first bringing your property to the market or risk it becoming a cold listing and having your property develop a stigma making it harder to sell. You do not want to be stuck with a house no one will buy.
Below are some tips on how to avoid having your property sitting on the market for too long:
1. Get accurate appraisals
Get as many accurate appraisals as you can from local agents who know the area and the market you are selling in. Four appraisals at the minimum is a must. As a rule of thumb, I usually discount the highest appraisal and the lowest appraisal, and go with the consensus. I also do my research on the agents giving the appraisals and will definitely listen more intently to the agents who are actively selling property in the area over those who are simply coasting in the market.
2. Do your own research
There is plenty of online tools and resources that will help you determine the true market value of your property. RPData can provide you with reports of sales in the area. All the top investor magazines will give you recent data about your area and you can also track yourself through realestate.com.au or domain.com.au what properties are comparable to yours, when they were listed what they were listed for and how much they sold for and when. These are guides only but should paint a fairly accurate picture of what price your property may be worth.
3. Listen and act
When the agents come out to appraise your property, listen to what they have to say. Take on board any advice they have not only regarding the price but also any tips they give that can help sell your property faster. If they say declutter, then declutter. Any quick fixes will help to getting that sold sign up faster. And listen to what they say about the price.
4. Emotionally detach
The number one reason people list their property for far more than the market is prepared to pay is because they are emotionally attached to the property and are placing a sentimental price on it rather than a market price. Yes, you may have lived in the property for many years and shared many milestones there with family and loved ones, but you are not selling the sentiment with the property. It is not a fixture. Do what you need to do to personally detach from the feelings you have for the property so you can list it for it’s true value and sell it sooner rather than later.
If worse comes to worse and you do find yourself with a cold listing that is developing a stigma, you may have to look at removing the property from sale for a while before bringing it back to the market at a more realistic price.
Full article can be read here.
I would love to hear your stories about buying or selling cold listings. Send me an email or comment below.
Until next time…
Chicks and Mortar – Women in Property