How does the time spent on the market to agree a sale affect your chances of the sale falling though?
We’re looking at the correlation between how long a home takes to sell (sale agreed) and the chances of that home then falling through.
- Homes that sell in less than 25 days have a 94% chance of exchanging & completing & a 6% chance of falling through
- Homes that sell between 26 days and 50 days have an 87% chance of exchanging & completing & a 13% chance of falling through
- Homes that sell between 51 days and 75 days have a 78% chance of exchanging & completing & a 22% chance of falling through
- Homes that sell between 76 days and 100 days have a 74% chance of exchanging & completing & a 26% chance of falling through
- Homes that sell after 100 days have a 56% chance of exchanging & completing & a 44% chance of falling through.
Does the length of time it takes to sell a house (sold subject to contract) affect whether the house will eventually go through exchange and completion?
Overvaluing; where an estate agent will over-inflate the suggested asking to secure the listing, means the home will take longer to sell.
A UK home that takes over 100 days to sell (for example more than 100 days between coming on the market and agreeing on a sale), that home has only just over a 1 in 2 chance of then subsequently exchanging and completing (56% to be precise) with the remaining 44% of sales falling through.
Yet if the property’s sale is agreed upon in under 25 days, the chance of exchanging and completing rises to nearly 19 out of 20 times (94%, to be precise), with the remaining 6% of sales falling through.
This indicates that overvaluing homes is ruining the market and creating a poor reputation for many estate agencies.
What is overvaluing and why do agents do it?
Over valuing is where an estate agent will over inflate the suggested asking price to secure the listing, meaning the home will take longer to sell – and quite often never sell.
Not every estate agent overvalues – yet many do
Does the length of time it takes to sell a house have any effect on whether the house will eventually exchange and complete?
If you’re looking to get an idea of the value of your home, you can use our instant on-line valuation tool which is a great starting point. It would then be down to finding the best agent to market your home and get you through to completion without minimal risk of falling through.
