The longer a home stays on the market, the more heavily it is likely to be discounted, meaning a quick sale is a good sale for the vendor's wallet, research shows.
Real estate analysis firm RP Data said vendors holding out for a better price on their properties tended to end up giving greater discounts when compared with those who accepted early offers.
"One of the greatest challenges for vendors is whether to accept an initial offer on their property or whether holding out for a better price is a better strategy," said RP Data researcher Cameron Kusher.
"The trends are fairly consistent with quick sales experiencing low levels of discounting while properties that sit on the market for a longer time typically see excessive levels of discount."
Mr Kusher said that over the past five years, homes that sold in less than 30 days recorded an average vendor discount of 3.9 per cent.
Homes that sold between 30 and 60 days attracted an average discount of 5.2 per cent while homes sold after more than 120 days on the market were discounted by 10.1 per cent, he said.
"Vendors need to ask whether or not they will get a better price by keeping the property on the market, or give consideration that an initial offer may be the best one," Mr Kusher said.
"This analysis suggests that the latter is generally the better option."
Mr Kusher said a property was most likely to receive offers when newly listed for sale, making it important for vendors to set a realistic price in order to get a quick sale with a low level of discount.
Share
