Vendors who choose to roll the dice with their properties by selling off-market are losing out, according to new data.
A new report from PropTrack comparing sale prices for houses sold off-market with those listed on realestate.com.au, found on average they sell for 2.6 per cent less.
Paul Ryan, PropTrack Economist and report author said consumers chose to sell properties off-market for a number of reasons, including testing interest in the property without incurring fees.
“Vendors need to be aware that the decision to sell off-market may come at a significant cost,” said Mr Ryan.
While some sellers might be trying to save money by not advertising online, the potential earnings lost in the final sale price are estimated to far outweigh the initial cost of advertising, on average.
“Sellers and agents both want to achieve the highest sale price possible, and we know that creating competition is the best way to accomplish that,” said Mr Ryan.
“The evidence shows advertising online draws a bigger audience, increased competition and a larger sale price.”
Key report findings
• Of properties sold in 2019 and 2020, houses not listed on realestate.com.au sold for 2.6 per cent less than those listed on the platform, on average.
• Sellers in NSW, Victoria and the ACT are worse off when choosing to sell off-market relative to other states. In Sydney, houses sold off-market achieved prices 2.7 per cent lower than other sales, while they sold for 4 per cent less in Melbourne and the ACT. This equates to a loss of more than $30,000 on average.
• Off-market sales in locations with median prices between $250,000 and $500,000 perform the worst. In these areas, off-market sales achieved 3.7 per cent lower sale prices.
• The average loss from selling off-market is often tens of thousands of dollars, far more than typical listing costs.
At First National Real Estate McColms we advise our sellers to list on the market because we believed there is a higher price achievable.
We believe on an average Bundaberg Sale, vendors selling off market are loosing approx. $15,000
The marketing investment required to reach the highest sale price is way below that figure.
Source: https://eliteagent.com