How much time it takes to sell your property in Cyprus
No matter how your property is priced, you need to know the probability of selling your property at the specific asking price within a given time on the market. You need to ask: how easy is it to sell the property, and how much time should I expect to wait until a buyer is found?
When a property is listed for sale, apart from its value, it is essential to know what the probability is of selling it. No matter how your property is priced, you need to know the probability of selling your property at the specific asking price within a given time on the market. You need to ask: how easy is it to sell the property, and how much time should I expect to wait until a buyer is found?
Saleability is a measure of the probability of selling a property at a specific asking price. It is not easy to identify the elements in your selling process to test and optimise your property saleability. We experimented with the elements of saleability for almost twenty years before we reached a truly effective heuristic methodology. We are revealing this secret methodology here for the first time.
Derived from a Greek word that means ‘to discover’, heuristic describes a rule or a method that comes from experience and helps you think things through. A heuristic methodology isn’t a mathematical algorithm. It is a shortcut for finding the factors that affect the saleability of a property. In econometric terms, the probability of sale is the dependent factor. The heuristic methodology shows the independent factors and their effect on the dependent factor (saleability).
Here is the methodology:
S= Demand/(Days on the market) x (Value Proposition+Positive Externalities+ Marketing)/(Price+Competition+Friction+Anxiety+Negative Externalities)
Saleability (S) is the probability of a sale. In other words, (S) shows how capable a property is of being sold in a specified timeframe. High saleability means a quicker selling time. Low saleability means a longer selling time. In the next section, we will analyse the factors that affect the saleability of your home.
The ten factors that affect the saleability of your home
The independent factors that affect the saleability of a property are the following:
Demand is measured by how many buyers are looking for a specific type of property in the area where the property is located. The estate agent can get this number from his or her database of active buyers. The higher the number of active buyers (with sufficient funds or finance) for that type of property, the higher is the effect on the saleability of the property. If the estate agent has no suitable buyers on their books for that type of property in this area, then the saleability is low or zero.
Days on the market is the number of days the home has been available for sale. The longer the listing stays on the market, the lower will be the saleability. A long time on the market negatively affects the saleability of a home.
Price is the asking price. The higher the asking price, the lower the saleability of the property will be. A lower asking price positively affects the saleability.
Value proposition is the appeal of the house to the potential buyer. It can be analysed by examining the condition of the property for sale, the architectural design, and the overall appeal of the property. A high value proposition positively affects the saleability, and a low value proposition affects the saleability negatively. For example, a home in bad condition that needs renovation or a home with a bad architectural plan has a low value proposition, so it will have small or zero effect on the saleability of the property when compared with a recently renovated home or a home with a more functional floor plan.
Positive externalities are the characteristics of the neighbourhood and the immediate location of the property, which positively affect its value. For example, a home next to a green area has higher saleability than a home squeezed between other houses.
Competition is the current supply of similar properties in the area. A high number of similar available properties for sale negatively affects saleability. A low number of similar properties for sale means a better chance of selling. So, if the competition is low, the saleability is high.
Friction is the element that affects the sales efforts of the estate agent while showing the home, during negotiations, and while closing the sale. For example, if the home is rented and tenants do now allow the estate agent to show it, this is an example of friction. Showing inconvenience will negatively affect the saleability of the home because it limits the number of viewings. Another example of friction is when the seller is abroad, and communication is difficult or done via third parties. Similarly, friction happens when a home for sale has multiple owners and each of them must agree on the deal. High friction negatively affects the saleability of a home.
Anxiety is the reluctance of the buyer to deal with the seller or the agent. Anxiety isn’t related to the characteristics of the property, but to the perceptions of the buyer regarding the seller and/or the agent. For example, overseas buyers feel uncomfortable when they deal directly with the owner of the property. Buyers feel insecure or unprotected when they are negotiating directly in a foreign country without the help of a professional. The buyers’ anxiety can also be related to the estate agent. If the agent has a bad reputation or buyers read bad reviews on the Internet, they may not feel comfortable dealing with the specific agent. Obviously, anxiety negatively affects the saleability of your home.
We need to clarify that anxiety refers to the fears of the buyer regarding the sales process of the specific property. Anxiety should not be confused with buyer expectations about market and economic conditions in general. Buyer expectations affect demand in general and they are already implicitly priced in, through the level of demand.
Negative externalities are the characteristics of the neighbourhood and the immediate location of the property that may have a negative effect on its value. If a home is situated next to a dump, buyers won’t be interested. Negative externalities negatively affect the saleability of your home, and you should expect a low probability of selling and a longer time to sell.
Marketing includes the preparation of promotional material and the execution of advertising campaigns. For example, high-quality photos and good property descriptions increase your saleability. In addition, your positioning on the Internet, distribution in the social media, and use of the agents’ client lists also increase the saleability of your home.
How to use the heuristic methodology to create a competitive advantage
Here at BuySell, our saleability estimation methodology is based on the analysis of four key areas:
1. understanding demand and supply,
2. correct pricing,
3. identifying factors that affect the saleability at the property level, and
4. the effect of the time the property stays on the market for.
Our suggested approach to selling is hybrid. Your agent must use both data and personal judgment. Work with your agent to get data about demand and supply. The sales preparation process starts by applying the heuristic methodology to check the saleability of the property. The next step is to analyse the profile of the targeted buyer. Then use software that implements science-centred marketing for identifying and generating a high number of leads based on customised ads for the target audience.
The heuristic approach is a considerably different approach from traditional property valuation. It will tell your agent how saleable your property is and how soon he or she can get the money you are asking for your home. Simply knowing the valuation of a property won’t tell you how saleable it is or what you can do to increase its saleability.
The heuristic methodology communicates value to the seller and his or her agent. As a seller, you need to know the elements of the approach and how they affect the saleability of your property. Knowledge is your competitive advantage—it permits you to answer the central question from the buyer’s perspective: ‘Why would I buy your home instead of another?’
Every buyer has a story about why he or she prefers one specific property and not another one. Identifying the buyer’s story is key to understanding the selling of property.
When we know why people buy, we know their motivation. This is what we call understanding the demand. If someone is really motivated to buy, they are also highly motivated to find what they are looking for. Once they find it, they will put up with almost anything, including competition, friction, and anxiety.
The heuristic methodology reflects the buyer’s desire to proceed with the purchase of your property by multiplying the positive elements with demand. If there is no demand, then none of the other elements will help to increase the saleability of your property. On the other hand, if you are the only one selling the kind of property that the buyer is looking for, you are a winner. None of the other elements will stop the buyer from moving forward in the sales process. But that is a very rare case.
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