Asking Price In 3 Seconds ?
24 Apr 2017
Well not quite 3 seconds, but it’s definitely getting quicker.
More and more asking prices or above, are being achieved in record time. Why is this ?
Looking back over the past few years of sales, the time on the market to sell has got shorter and shorter. The market has definitely got better with the numbers of first time buyers increasing along with the number of properties coming to the market getting less. This obviously leads to more demand and a hotter market leading to offers being made quicker.
But there is also another point to consider, over recent years the way people search for property has totally been changed. In the past, the first point of call was the agent on the high street, usually alongside many other agents. Potential buyers would walk along registering at each agent, collecting stacks of brochures, which they would later peruse over when they arrived home, they would then call back to arrange to view the ones they liked.
If any of the agents then got a new instruction onto the market, they would call up potential buyers and pop a set of details into the post, to arrive with their clients a couple of days later. The potential buyers would then call to make an appointment to view, which was generally the following weekend, unless someone wasn’t at work one day during the week.
Eventually smart estate agency software came along, allowing agents to register people on electronic database systems which could match the people registered with the price of the properties in an instant, and initially not much else. This meant that when a new property instruction came into the agency then it was able to be e-mailed out (for those that had e-mail) – and posted out to everyone else, a lot of the database systems would store the e-mails to send them all out at the end of the day after closing, so they didn’t slow the computers down. Viewings would be booked over the next week or so.
With the dawn of Rightmove and Zoopla, agents slowly signed up to these sites in order to advertise their clients properties nationally, online. The agents at first manually uploaded the properties to these sites over the first days after instruction, so it could typically take 48hrs + before their property was advertised online. Then the viewings are booked and hopefully offers come in.
Then came along smarter databases, allowing people to be matched more precisely with what they were looking for. Rightmove and Zoopla started capturing data. This allowed users to register with them, giving a set of criteria about exactly the type, price and location of the property that they were searching for, and eventually many other factors also.
So this now brings us to today, and how offers can literally be achieved in seconds. A new instruction is gained by an agent. Following all the relevant legal checks the agent then loads the property onto their database and sets it as available. This is instantly viewable anywhere in the western world on Rightmove. Anyone who has previously registered on Rightmove with these criteria, then gets an e-mail telling them about the new listing, many people will get this e-mail on their phone and can ring the agent straight away. If they know the area, know the type of house, know how much they wish to spend, some will make an offer in an instant to try and secure it.
This is superb for sellers with their property being seen by many more people, in a much quicker timescale.
Although there are a few considerations. Nowadays property details must be perfect, pictures must look good, floor plans and all relevant information must be available before putting it on the market. It is still a surprise when you see agents with a little note where the photograph should be saying “awaiting image”. The largest number of people are going to see that and it really is a missed opportunity.
There is another hiccup in the new system where potential buyers and vendors ( often both ) have a different idea of what is considered a long time on the market.
A good example being where a vendor will not consider something for purchase that has been on the market for more than a month, as the perception is that there is something wrong with it. Yet if they themselves get an asking price offer in week two, think that the property has been priced too cheaply and wish to leave it on for longer to see if they can achieve more ?
As technology creeps in more and more we do have to change vendors and buyers perceptions, and possibly the way that property is sold. The open house way of selling could be one solution, not allowing anyone to view for a set period, this then allows the vendor to have it one the market for a length of time, to satisfy that the price is correct. But unless priced very competitively this can lead to an empty open house. Some buyers are also put off by this as they do not want to be in a competition. And some people simply have plans on the day the open house is scheduled for so don’t book in.
We are always keeping our eye out on the technology, and different ways of selling and achieving the best outcomes for our vendors.
If you are looking to sell or rent your property out in Manchester then do call our office on 0161 819 4722 to discuss your requirements.
Sales and Lettings Manager
Suttons City Living