Days On Market & What That Means For Sellers
Let's have a chat about Days on Market and what that means when you're selling your house. I don't know very many sellers that want their house to be on the market for 30, 60, 90, 120 days. And in the Townsville Market over the last few years, the average Days on Market has gone up from about 80 to 120 days.
The good news is, over the last six months, as more and more buyers are purchasing properties, Days on Market has come down quite a bit. Now, recently, in the suburb of Hermit Park, Days on Market has dropped to 28, in West End it's dropped to 32, and in Kerwin it's hovering at about 60.
Now, between Shawn and myself, our Days on Market is all the way down at 17 days. That's over the last 20 properties we've sold. How do we get our Days on Market down to just 17 days when on average they're selling between 30 and 60? We put buyers in competition with each other.
So, Shaun and I are pretty strict with where we price our houses when we put them on the market. We like to encourage vendors not to leave large amounts of negotiating room but to put them on the market for a fantastic price. Maybe $15 to $20,000.00 higher than they want. Why is that? Because when it first hits the market, buyers see on their mobile phones, new house on the market, Thursday morning. It's going to be open Saturday morning, they get excited. That house looks great. We've taken the best possible photos. It's going to sell this weekend, they think to themselves, because it's a fantastic price.
We then get 15, maybe even 20 people, through our houses in the first weekend because we opened both Saturdays and Sundays. People see that there's a crowd of people in the open homes, and they say, "Oh, my goodness. The other open homes I went weren't that busy. This open home is busy. There's lots of people here. There's a good chance this house is selling."
There's a bit of fear of loss among buyers. If we're selling a very nice house that's perhaps staged, painted, prepared properly for market, they don't want to miss out on a very good deal. So, when we call them back Sunday night, and say, "Hey. How did you like that house at Number 2, Smith Street?" They usually say, "Wow. It was really presented well. We think it was a great price. Can we have another look at it?"
So, we've been able to get our Days on Market all the way down to just 17 over the last 20 houses we've sold. And we feel like by getting our Days on Market down so low, we're able to get the vendors the best possible price for that house. Why is that?
What do people think when a house has been on the market for 30, 45 days? Well, they usually think, "Oh, man, that house has been on the market a long time. I've seen it on my phone every week. It still hasn't sold. If it hasn't sold yet, there might be something wrong with it. My weekend is busy. I've only got time to see two or three houses so I'm gonna go to one of these newer ones, that's priced right, and if that house goes down a bit lower, I might see it again in two or three weeks."
So, if your house is priced improperly, it's gonna take longer to sell, and then by the time the house is priced right, everyone's already seen it for three or four weeks, and they think, "Well, nobody else has bought it, maybe I'll wait until it gets a little bit lower." So, if you let the Days on Market drag out to 30, 45, 60, your house actually sells for, in general, a much lower price, than if you sell it in the first week or two.
That's why we focus on getting the price right, getting the best possible photos, and using the best possible ad on the internet, to get your property the most exposure, and get it sold within the first couple of weeks.
Another thing about selling in the first couple of weeks is, you get those buyers that are desperate to buy a house. Maybe they just missed out on two or three bargains from another agent because they put in silly offers. Well, for this house they've learned their lesson, they're not gonna do that, and they've put in a great offer straight away.
You also get buyers that are in situations where they really need housing. Maybe they've just sold their house, and they really need somewhere to live. They don't want to move twice, they'll put in a good offer. And often times, you have a woman who might be seven or eight months pregnant, wants to be in the house, all set up when she has her baby, those families tend to put in fantastic offers, as well.
So, pricing precisely keeps our Days on Market low, and the lower the Days on Market, in general, the better the price you're going to get for your home.