The property offer sweet spot! The optimal number of days a home needs to be on the market to get the best price from its sale
- Homes for sale achieve the maximum price on day nine of being on the market
- After one month, a property typically sees the asking price drop by £3,200
- The drop is £15,400 if the property is on the market for more than three months
Properties for sale achieve their maximum price on day nine of being on the market, new research reveals.
They were typically sold at 2 per cent above the asking price on that day, according to the research by HomeOwners Alliance.
It is the equivalent of raising an extra £5,000 on an averagely priced property.
Properties for sale achieve their maximum price on day nine of being on the market
The data, collected from more than 6,500 estate agents’ branches throughout England and Wales, found that the eventual price paid for a property steadily decreases with time.
After 30 days on the market, sellers typically accept 99 per cent of their original asking price.
And after 90 days – or three months – this drops to 95 per cent.
Similarly, agents whose average selling time was seven days or less achieved only 97 per cent of their asking price.
The best time to sell to achieve the maximum selling price is between eight to 14 days after going on the market, HomeOwners Alliance said.
With the average home in Britain currently changing hands for around £290,000, these few percentage points could equate to thousands of pounds for sellers.
Selling in nine days will mean the owner would exceed their asking price.
However, the amount by which they fall short of their asking price increases significantly the longer the property is on the market.
After one month, the price drop is £3,200 off the asking price, while the drop deepens significantly to £15,400 if the property is on the market for more than three months.
After a home has been on the market for one month, it typically sells for £3,200 less than the asking price
Paula Higgins, of HomeOwners Alliance, said: ‘There is an optimum length of time to have your property on the market, and we can now show that that is nine days.
‘Properties sold more quickly than this don’t achieve their full value because they are sold too quickly.
‘At the other end of the scale, properties which are listed for a number of weeks see their values drop steadily, particularly after they have been listed for over a month.’
Achieving above asking price will depend on the type of property you are selling and whether the original price is correct
There are a host of factors that ultimately determine when a property sells, including whether it has been priced correctly in the first place.
Alex Lyle, of Richmond estate agents Antony Roberts, said: ‘The best, or most motivated, buyers come through the door first and it’s true that the quality of applicant and volume of viewings tend to diminish over time.
‘We’d agree with nine days but achieving above asking price will depend on the type of property you are selling and whether the original price is correct.
‘No one pricing strategy fits all; the closer the gap between buyers’ perceptions of where a property’s value lies and the initial asking price, the greater the prospects for a positive reaction from buyers.’
How to buy or sell a home quickly
Buying and selling a home is often considered to be a drawn out – and frequently emotionally exhausting – process that can typically take a couple of months.
However, it can be done within just 14 days from the day when a deal is accepted.
The process is sped up by doing plenty of preparation, which includes following four steps – outlined below – if you’re selling or buying a property.
If you’re selling a property
1. Obtain the deeds to the property you are selling
2: Complete the ‘Property Information Form’ from your solicitor, which includes items such as the fixtures and fittings you may be leaving, and the permissions and consents you obtained for works done and if you have had any disputes with neighbours. A conveyancer shouldn’t charge more than £200, advises buying agent Henry Pryor.
3: Instruct your solicitor to draw up a draft contract. Mr Pryor says this shouldn’t cost more than £200.
4: Apply for the local authority searches via your solicitor. These have a shelf life of up to six months and cost around £300.
If you’re buying a property
1: Apply for a mortgage and ask for what is known as a ‘Mortgage In Principle’ (or sometimes known alternatively as an Agreement In Principle). This is the document that proves you can afford to borrow the money required to buy a property and is beneficial in showing a seller that you can move quickly. There should be no cost for this.
2: Instruct a solicitor. This shouldn’t cost you anything as all the solicitor is doing is opening a file with your name on it, so it is ready to step into action once the offer on a property has been agreed.
3: Take out insurance to cover your costs should your property purchase fall through at the last minute. A variety of companies provide these products, including property website Zoopla. Its Homebuyers Protection Insurance is currently available for £49.95 and covers items such as up to £1,000 in conveyancing fees and up to £500 in mortgage fees.
4: Find a building surveyor who will be happy to do a building survey of a property when you find one. Again, you may not need one and it won’t cost you money, but when you make an offer, you will look like you know what you’re doing and it will be taken more seriously.