Days On Market
Knowing how long a property has been on the market can be a key indicator when it comes to determining if it qualifies to purchase.
In a market of low stock levels, it is common that well presented properties will be taken to auction as it creates a competitive arena for buyers to battle it out and more often that not, the property is sold beyond the reserve price.
On the flip side, in a market of choice, when stock levels are high, you may find that properties have an increased number of days on market. So what does this mean?
Firstly, it means that buyers have choice and therefore, may be deeply considering their options before proceeding to place an offer. It could also mean that the property has been priced too high and isn’t attracting the right type of buyer as it’s been priced out of the market.
Buyers have a tendency to say ‘there must be something wrong with it’ when a property has been on the market for more than six weeks. This could very well be the case, but not always. Completing your due diligence and investigation on the property is vital to ensure you don’t buy in to a problem.
In some case, the property has been placed under offer and for reasons such as finance or right to action the cooling off period, the offer has fallen through which has stalled the selling process.
There are many reasons as to why a property may be on the market longer than a traditional four week selling campaign, the key is to be informed and do not make assumptions.