How long is a piece of string? Ben’s Barometer October 2017
We are often asked ‘how long will it take to sell my house?
No two properties are the same so it is hard to give an exact time-frame for the sale of your home. At the moment, the average days on the market is 25.2 days but this does not differentiate one style of property from another. With regards to your unique property, there are a number of factors which will determine the answer. Some which you can control and others you can’t.
Things in your control
Method of sale:
Markets change. Often. So sales strategies should always take into account current market conditions. Identifying your target market, using the right sales method for those buyers , and developing an advertising campaign that targets what they’re searching for, will all help limit your time on the market. As important as deciding the initial sales method, is having a backup plan ready. Deciding this in advance and knowing when to implement it will keep you one step ahead of the competition.
In a flat market, using a method which includes an indication of price such as a ‘Buyer Enquiry’ level or fixed price, can be a great way to attract buyers and reduce your time on the market. It is important to note that buyers who have been active in the market will have developed a strong market knowledge so making sure to pitch your property slightly lower than your expected result will ensure buyers in the door. Pitch too high and buyers will fail to engage, which will more often than not extend your time on the market and may result in a price reduction.
We always say, start on the outside and work your way in, keeping your target buyers top of mind. Outside: this can mean water-blasting paths and decks, soft washing your house and removing any mould. Cut back overgrown sections, weed the garden and use planting to create wow factor. Inside: create sparkling clean, odour-free homes, fresh linen and towels, streakless windows and spotless bathrooms. These things are all non-negotiable. Clutter eats capital, so clear surfaces, remove bulky furniture and depersonalise. The goal is to create clutter-free, usable spaces your target buyer dreams of.
Most of the time we only become aware of problems with our home when something goes wrong. It’s not so in the case of selling your home. Most buyers will carry out due diligence on your property so they can offer with confidence. Knowing everything about your property, including any potential problems, and addressing these issues before it comes to the market, will all help you stay in control and reduce your time on the market.
Things outside of your control
Left unchanged, the sales history of a property can be a good indicator of the likely marketing period, especially in a balanced market. A good quality property is likely to sell within a relatively short timeframe e.g. two-week tender, while properties with less desirable aspects like a walk up or cladding concerns tend to take longer. Unless you have made improvements to your property which overcome or eliminate objections, it is likely that history will repeat. This is not necessarily a bad thing. Being aware and being strategic in your approach, helps limit frustration.
These properties have a small pool of buyers and require good market conditions to limit time on the market. An example of this is lifestyle blocks which have a very short season of good activity. When the property market is strong, city dwellers will cash up and choose the lifestyle dream. Lifestyle properties, which may have been on the market for years will turn over in months. Only to revert to a slower pace when market fever recedes.
Donald Trump, Nuclear threats, and the Block Shock:
World politics, market confidence, global and local economies all have an impact on the residential market. Your home may be in good order but the wider market will play its hand in pushing your time out such as with our local election. This is a hard one to avoid but again, it is all about timing. So, depending on your motives for sale, it may be best to let the dust settle.
Major natural events like the Christchurch and Kaikoura earthquakes can have a massive impact on time on the market, even if your property hasn’t experienced any damage. In the case of Christchurch, it took months to navigate issues with insurance and land zoning. In these cases, it may be best to withdraw your property and list at a future date.
The market continues its game of two halves with some properties receiving multiple offers while others are taking much longer to sell. The property person in me feels buyers are missing some great opportunities because they cannot, or are unwilling to see the potential in properties needing even a sniff of work. But that could just be a generational thing.
We anticipate a big rush of properties after the school holidays as the market ramps up in the lead-up to Christmas (did I just say the C word?)
WELLINGTON MARKET QUICK FACTS
Average sale price by Ward:
OCTOBER QUICK FACTS
As we head into October, New Zealand waits in anticipation to find out who will lead our country. Lets look at a few facts about the New Zealand election process.
- NZ elections are held every 3 years, unless they are brought forward due to low confidence or exceptional circumstances
- Since 1993, we have used the mixed-member proportional (MMP) system
- The first NZ elections took place in 1853
- Women’s suffrage was introduced in 1893, with NZ being the first modern country allowing women to vote
- Around 3.57 people were registered to vote in the 2017 election, with 2.56 million (78%) turning out
THANKS FOR READING
If you, or anyone you know could benefit from a considered market assessment by Wellington’s only licensed agent and registered property valuer, please do not hesitate to call. We are always very happy to help.