There’s a reason why we run our auction campaigns for four weeks. Or more accurately, 25 days.
We launch our properties online on Tuesday, hold our first open for inspection that Saturday, and conclude with an auction three weeks later, on the fourth Saturday.
There are a total of seven open for inspections including the one directly before the auction, plus private inspections as required.
For most properties, this is the optimal timeframe to maximise price (and minimize inconvenience to our vendors).
Many potential sellers think that 25 days might not be long enough… until they have to spend hours cleaning up for each open and then the shorter the better!
Yet with very few exceptions, a property that is presented, marketed, and priced properly will sell within four weeks.
If it takes much longer then something is usually amiss and a clear sign that the market hasn’t engaged with the property. Usually this is due to price – but it could also be presentation, marketing, or method.
Of course, there are exceptions – unique properties with a very specific buyer such as a country estate or church conversion. Or a property with low demand and high supply, such as a high-rise apartment competing with 10 other listings in the block. These may need more time.
But for a period home in Stonnington, four weeks is optimal.
Engagement with a property diminishes over time. Time is generally not your friend when it comes to selling.
We often get more buyers through the first two opens than the remaining five opens combined.
The best and most active buyers – those who refresh their real estate apps daily/hourly – tend to inspect on the first Saturday. If interested, they typically come back for a second inspection the following week. Then they either see if they can buy it before auction, or if not, they wait for the auction.
The longer they must wait, the more likely they are to be distracted by other properties or talk themselves out of the home.
We often joke that if a buyer comes through a home four or more times during the campaign, they are not going to buy it. They are looking for a reason not to buy the place… Or are too indecisive.
We rarely pick up much new interest in the final week of the campaign. The numbers through the Saturday opens typically halve each week. So, if you have 30 groups through the first Saturday, you would expect 15 on the second, and six or seven on the third.
Likewise, the online views drop off very quickly. We may see 3,000 views in the first week, but only an additional 2,000 views in the remaining two and a half weeks.
Furthermore, there tends to be an inverse correlation between interest and days on market. The higher the level of interest, the lower the days on market.
A property with a huge amount of interest will often sell before auction because early offers are forthcoming and there is competition – allowing us to bring forward the auction.
We have had several campaigns recently where we brought the auction forward a week to capitalize on strong momentum and not risk losing our best buyers to other properties.
During COVID when the market was red hot, we were running auction campaigns over two weekends with a Zoom auction the following week. There was so much FOMO that buyers were happy to buy after inspecting just the once. Or sometimes not physically inspecting at all!
Our (Team Fetter/Sciola) median days on market shortened to just 18 in 2021. We are now back to our long-term average of 25 days, which is still far shorter than the Melbourne average of 31.
The current lack of stock has created a competitive environment for buyers. Our only advice is that if you are interested in a property, get your ducks in a row as soon as you can. Inspect early, twice if you need. Get the contract reviewed and building inspection done (if you’re getting one) sooner rather than later.
If an acceptable offer is received you may only have 24 – 48 hours to challenge, so you don’t want to get caught out.
And if you are making an early offer, put your best foot forward. Paradoxically, you may end up paying less by offering a bit more and finding that no other buyers challenge you, rather than offering a bit less and then having to compete for the property.
A good agent will guide you through the process and keep it fair.
Feature Property: 32a Cromwell Road, South Yarra
David Sciola 