Dear Heather,

I’ve just listed my house for sale, how long do you think it will take to sell it?

Seller

Dear Seller

When I list a property for sale, one of the first questions I typically ask sellers is how quickly they would like their money. It’s no secret that an overpriced property takes longer to sell, and it might eventually sell for a lot less than market value. Currently in Bermuda a well-priced property could sell within 30-90 days.

Average Days on Market

Average days on market is a number that your real estate agent should be able to provide based on current market data and not just a “gut feeling”. If your agent can’t give you that number, you might want to think about hiring an agent who can. To determine the average number of days on market it is a case of figuring out the day each comparable property goes on the market and counting the days until they close. Add those days together and divide by the number of properties.

What Makes a Property Sell Quickly?

Sometimes there is no logical reason for the length of time it takes to sell a property. It could be sheer luck as in “right place, right time” — your house could come on the market on the very day a specific buyer is looking to buy such a property. But more than likely, how long it takes to sell depends on the following three factors:

1. Price

A smart strategy some agents use to entice multiple offers, which tend to push the price higher, is to price the property a little bit under market value. This creates a buzz in the market with buyers competing to get the property. Price range makes a difference, too. Often, days on market are lower in lower price ranges and sell faster than higher price ranges simply because the demographics indicate there are more buyers who can afford lower-priced property. This comes back to supply and demand.

2. Location

The adage: location, location, location is true. If the home is located in a highly desirable neighbourhood near excellent amenities, schools, buses, recreational activities, churches, grocery stores, golf courses, etc, there will be more demand for the property. If it’s located in a non-desirable high-crime area it means there are fewer potential buyers.

3. Condition

Properties in tip-top shape that sparkle and shine sell much faster than houses that need repairs or are cluttered. Buyers need to imagine how they will live in that house, and they can’t do that if the property looks cluttered, is messy, or has pet odours. Sellers can improve their days on market by getting things in tip-top shape before they list their property.

Market Temperature Determines How Long it Takes a House to Sell

In sellers’ markets, properties tend to sell faster because there are fewer sellers and more buyers.

When more than one buyer is trying to buy the same home, that can result in a bidding war with offers received above list price. It’s not unusual for a home to sell in a sellers’ market in less than a week.

In buyers’ markets, (which we are currently seeing) buyers have more choices and can take more time to shop around. If the property isn’t exactly what a buyer wants, a buyer will pass it over and keep looking. Many buyers shop by price range, so if your house is overpriced, it will not come up in their search, and you could have lost the very people that would have bought your property. If you are a seller in a buyers’ market, property pricing and patience are key.

•Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332 1793. All questions will be treated confidentially.