When a new property comes on the market, interest will be at its peak. Qualified buyers will have a genuine interest in something new that matches their specifications and will be more inclined to consider or inspect the property. Due to the new listing having high interest, this will carry with it high competition. In theory and often in practice the greater the competition, the higher the selling price.
Since the above is known it is essential that when a property first enters the market it must be presented and marketed to the best of the owner and agent’s ability. A climate of urgency will surround the buyers if the property meets their specifications and it is more likely that a sale will occur early and at a higher price in this instance.
Over time if a property doesn’t sell a listing will become ‘stale’ and therefore different marketing techniques may take precedence. This occurs as ‘qualified’ buyers are not as numbered due to only new entrants considering the property. In this case the competition will drop off and this may reflect in the sale price.
It is up to the seller on whether they wish to hold out for their initial asking price or consider lowering their price to attract new qualified buyers. In both situations, it is a case of time versus money or as with many owners changing premise, selling when a new home has already been purchased.
In summary, early offers for a property may come in and even if they are slightly less than the asking price, may be worth considering. Many sellers find that as initial interest wanes, their asking price will have to be dropped below the earlier offers; the property becomes stale and qualified buyers are few and far between.
If you would like to find out more, contact Alert Property Group.