Is there any rule of thumb for minimum/maximum open house when it comes to selling property?

Discussion in 'The Buying & Selling Process' started by L3ha7, 26th May, 2018.

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  1. L3ha7

    L3ha7 Well-Known Member

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    I do understand there are various factors plays part when selling a property such as demand vs supply, interest rates, property cycle, area etc. etc.

    This is the 1st time we are selling our properties and curious to know what are your views on the following:-

    1. How many minimum open homes an agent (vendor) should do in the current market?

    2. What is the maximum number of open homes one must do before deciding to put the property on rent as sitting in market still chewing money or drop the price?
     
  2. Trainee

    Trainee Well-Known Member

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    Cart before the horse. You need to set a price you think the market will pay, decide what your minimum is, and how much your willing to lose. In other words, its not about the open homes, its about you.
     
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  3. L3ha7

    L3ha7 Well-Known Member

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    Great points.

    I believe we have done all that but when you say"how much your willing to lose" after how many open homes you decide that
     
  4. kierank

    kierank Well-Known Member

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    Assuming you are having weekly OFIs, then after:
    • Four OFIs, I would be getting concerned
    • Six OFIs, the property is becoming stale
    • Eight OFIs, the sale is cold
     
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  5. L3ha7

    L3ha7 Well-Known Member

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    Thanks @kierank I think I am still 2 wks away from ur 1st point.
     
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  6. L3ha7

    L3ha7 Well-Known Member

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    I believe RE agent is subject matter expert in giving tge appraisal and price range but uf still no offers after 2 weeks what does that mean?
     
  7. Trainee

    Trainee Well-Known Member

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    The agent appraised high to get your business and will now tell you the market is slowing and you should lower the asking.

    This is why your own knowledge of the market is important.
     
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  8. L3ha7

    L3ha7 Well-Known Member

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    Agreed but I interviewed 7 RE agents before I decided to go with 1 and all have the same/similar price range or appraisal as they know the area well.

    Edit= Property market dynamics play part too-1 of our prop in south west got offer abd sold with 1 open home hence the anxiety abt the 2nd one (no offer after 2 weeks) but different areas though

    Secondly. Time to time in last 2 years I have been taking appraisls and doing my research which shows the same
     
    Last edited: 27th May, 2018
  9. Big Will

    Big Will Well-Known Member

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    A couple of things;

    1. Price is to high

    2. Marketing is incorrect

    3. Buyers are still doing their DD

    If the price is to high then 2 and 3 make it hard, if price is right and marketing is incorrect then you better sort it out asap or buyers are still doing their DD - means you are close but they are either seeing better opportunities elsewhere (e.g. somewhere else is better value/your price slightly above where they value it).

    To many variables here but what is the average days on market in the area? If you are looking down the barrel of 90 days average then you are way to keen so will need to drop your price... If the average is 7 days then you are in a booming market and your price is also to high but people might get desperate so you can be okay.
     
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  10. L3ha7

    L3ha7 Well-Known Member

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    Hi @Big Will , thanks for your comments.

    As per domain average days on market for 3bed is 39 and for 4 bed is 46, propertyvalue and investsmart website shows 47 and 38 respectively. Your investment orop mag also shows 46 days.

    Median price for 3 bed is $560K-590k depend on various websites.

    Could you please elabirate more on your 2nd point:Marketing is incorrect?

    My understanding is marketing for property is referred as highlighted advertisement in domain and RE websites, distribute flyers in the local area and do open homes regularly and respond to enquiries with efficient response time. (boosting ads on facebook and RE agent websitrs or database notifications etc.)
     
  11. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Are people turning up to inspections? If they aren't coming through the door then it's probably too high. If they are coming then it might be priced right but something else is turning them off
     
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  12. Big Will

    Big Will Well-Known Member

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    RE: Marketing

    If you have a large block of land and trying to sell it to a downsizer it probably is not a great choice of who to market it to.

    If you have a 6 bedroom home for 2M and the ad is towards FHB or investors again wrong marketing.

    If you have put in a standard ad and there are 50 premium listings then it could be worth looking at upgrading your add.

    If you are targeting a Chinese buyer and advertising in the normal paper then maybe worth advertising in a Chinese newspaper.

    None of them was about the 'price' but rather where/how net was being thrown.
     
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  13. L3ha7

    L3ha7 Well-Known Member

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    As per the RE report and online portal shows people coming in. I did some work to prepare the property for sale as well so I think property is in a good condition.
     
  14. L3ha7

    L3ha7 Well-Known Member

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    Got it, my place is kinda good for 1st home buyer, investor or downsized. But I do get what you mean.

    Let's wait and watch I guess and fingers crossed.
     
  15. babyboomer1

    babyboomer1 Well-Known Member

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    Surely the RE would have given you some feedback after each open house and comments from prospective buyers if not challenge him as why there is no prospective buyers. How is he marketing the property?
     
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  16. L3ha7

    L3ha7 Well-Known Member

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    Thanks @babyboomer1 , I am meeting my RE this Saturday. As I am selling for the 1st time, these tips are helpful.
     
  17. JDM

    JDM Property & Conveyancing Lawyer Business Member

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    It will depend on the property and the average days on market for the area, however it is totally normal to run opens for 8-12 weeks in a normal (ie not Sydney a year or two ago) market.

    What's more important is the number of people coming through the opens compared to the average for the area/property type, the feedback from those that have inspected, the number of inquires and the number of offers.
     
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  18. wylie

    wylie Moderator Staff Member

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    Some good feedback above. I would say in my experience last year we had a lot through the first open house. We had our first offer fairly early which we countered, and they walked.

    We had another offer that fell over due to their changed circumstances since pre-approval and then we had a smartie pants third buyer who played games “will I sign tonight or maybe tomorrow. What mood am I in?”

    His offer was lower than the first two. He was a young gun lawyer who I believe judged our situation as... “This house has been on the market four weeks, had previous offers so I’ll play with these desperate sellers a bit and lowball because the momentum has slowed and the property is going stale (both accurate) so I have time to be a smart arse and play with thsee people like a cat with a mouse”.

    This view was mine but our agent agreed with me completely. We pulled the contract from under this young gun purchaser and thankfully sold that same week for the same as the first offer.

    We were not desperate sellers and were thinking of waiting another year but were so glad to sell it looking it’s best without the costs of the furniture hire and the advertising being lost.

    A stale house is a sitting duck for a cashed up buyer. We were definitely approaching going stale after four or five weeks with good attendance and three offers and chatter had started along the lines of “what’s wrong with this house?”
     
  19. L3ha7

    L3ha7 Well-Known Member

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    My property had 2 open homes (properly) and my RE guy wanted to meet and discuss if we are ready to drop the price. They didn't push me it force me but suggested that Winter is not a good time to sell (WTF-when they pitch me to sell my place they never said ,they will wait for spring), and in last 2 weeks 3 or 4 properties came in the market which I think is not true and if they did come but may not be in comparison.

    They said we do not wanna change price again and again (which I agree) but after 2 open homes I really think it is not the right move. I told them that yes market is down and it takes few weeks to sell the property and our price range is as per what you suggested and what other RE agents gave me appraisal so in last 1 month all of the sudden price gone down.

    At this stage , ball is in my court and I am sitting on this decision.

    We got new carpet, new paint in all the main areas, close to station, property is in excellent condition and very few online enquiries and prop visits but we do not know other comparable properties are going through same or not. I did see couple of price reductions in my suburbs for the properties that were in market 4-6 weeks before mine.