A way of actually reducing that anxiety is to know what the average days on the market are in your area, because if you know what the average is, then you have a yardstick to really know how long you should expect that property to take to sell.
In this video, I’m going to teach you a simple but effective way of reducing your stress level when selling your property. I’m Bernadette Janson from The School of Renovating where we hope ambitious renovators replace their income with renovating, Airbnb, and other property strategies.
Okay, so we’ve all been there. So we’ve slaved our little hearts out to get our project finished, feeling incredibly emotionally excited about it, but also a bit nervous about it because this is really where the rubber hits the road.
Often you will hang on the first open, you know, hang out waiting for that to be finished.
So the agent can give you some feedback and hopefully tell you how much everyone loves your Reno and possibly that he’s already got a contract.
It can be an anxious time and a way of actually reducing that anxiety is to know what the average days on the market are in your area, because if you know what the average is, then you have a yardstick to really know how long you should expect that property to take to sell. So let’s say the average day from the market is say seventy-five then expecting a contract on the first day is highly unlikely.
You would expect that if you presented your property well and you’ve renovated it to meet your market, it will do better than the average. But even so, there’s just in some areas it just takes time.
So you can sort of sit back and relax and think – “Okay well, the average days are seventy five that’s ten weeks and we’re on day one, week one that I’m not going to expect a contract on this from this open. I’m just going to sit back and just allow the process to take its course.”
The other reason why it’s really good to know the average days on the market is for when you’re doing comparison to choose your agent. It’s one of the data points that we use to, I guess, understand an agent’s effectiveness. It’s not the only one. There are other elements that come into it, but it is an important one. So if your agent does better than the average, that’s a good indication that you have a very effective agent.
And to be able to relax and trust your agent makes a big difference to your anxiety level through a sale campaign.
Well, the third advantage of knowing your average days on the market is that you really know how I guess cheeky you can be when you’re fielding offers.
And I’ll give you an example of that. So we completed a project and took it to market recently and in an area where the average days on the market is around 80. And we had our first offer and accepted it on day 21. So it was a conditional offer. And few oh, couple of weeks after that, it actually fell through because one of the conditions couldn’t be met.
And so we were back to the drawing board. Now, that in itself can be quite unsettling. But, you know, we thought – “We’re only 20 odd days in and we you know, we’re a long way off the norm. So we can relax about this and expect that another bar will come along. And another bar did come along. Very quickly, like in within three guys we had another bar the very next open. And that buyer too old to get them up to the same level as the first without wanting a much longer settlement period because they had other commitments.
And after you’ve had one contract fall through, there can be a tendency to feel a little bit desperate about it. But I looked at it and I thought, you know what? The average days’ in the market is 78. So we’re well within that timea nd we’ve already had two very strong offers. I think we can afford to be a bit cheeky. So what we did is push back and say to them, “We’re fine with the price and we’re fine with the length of the settlement. But the problem with that is that it increases our holding costs significantly. So what what we’d like you to do is to increase your price so that we’re not disadvantaged by that.”
And I won’t say they did it easily, but eventually they did increase their price and we ended up with a signed contract. But had I not had that comfort of knowing we still had quite a bit of time within the average days, I might not have pushed back so much.
So it gave me confidence in the sale process of that particular property. Now you might be wondering how you find the average days on the market, and the easiest way to do that is just to Google “your suburb + average days on market” and you will find several sources of that information.
Now, just be mindful that they will differ slightly because different data sources do differ but just take the general average. And then you have your number!
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