Over $1 bln in commissions lost from failed listings

Brendan Wong 

Over 110,000 properties listed last year failed to sell, costing the industry $1.3 billion in commissions, according to RP Data.

General manager of product and information services at RP Data, Greg Dickason, said the substantial number of properties that failed to sell was an opportunity for agents.

He explained that he made the discovery after he found many agents had different approaches to getting their next listing.

“Most used a combination of referrals from current sellers coupled with contacts they had built up over many years of working in their area,” he said.

“Others, particularly newer agents, cold called lists of homeowners, or door knocked and letter dropped in their area.

“What amazed me was not one of them approached last years’ unsuccessful vendors. Not one of them approached those vendors who tried, but failed, to sell their properties.

Using RP Data’s withdrawn listings tool, Mr Dickason worked out the potential commissions, based on a rate of 2.5 per cent, that were out there if these past listings could now be sold.

For example, in the suburb of Pymble in Sydney, an estimated 52 properties with an approximate value of $95 million equated to a loss of $2.3 million in commissions.

On a broader scale, in NSW, 34,543 listed properties with a value of over $17,747 million did not sell last year.

Capital cities combined, a total of 110,000 properties with a combined value of over $52 billion for those with a listed price were not sold, which equated to $1.3 billion in commissions.

Mr Dickason pointed to the case of a property in Windsor in Queensland which the owners tried to sell three times in the last one and a half years.

“The vendors have tried to sell around the $320,000 mark and have kept the property on the market for on average three months per listing,” he said.

“Last year they were probably over the market value for their property type and condition. Now, though, an automatic valuation report shows the property is worth around $325,000 - seems like it might be a perfect time to retest the market with a new agent.”

In conclusion, Mr Dickason said with the current market conditions, many vendors’ price expectations were not longer out of range.

“The price they expected to achieve last year and did not is now a price they might get.

“A simple search would find what they expected to sell for last year, which could help an agent approach them and could guide the conversation that agent had.”

State

Number listed that did not sell

Value of listings (where price was displayed in the listing)

ACT

1,945

Over $913 million

NSW

34,543

Over  $17,747 million

QLD

26,794

Over $13,201 million

SA

3,615

Over $1,406 million

TAS

3,543

Over $1,106 million

VIC

35,169

Over $15,486 million

WA

5,361

Over $2,998 million

Brendan Wong 

Over 110,000 properties listed last year failed to sell, costing the industry $1.3 billion in commissions, according to RP Data.

General manager of product and information services at RP Data, Greg Dickason, said the substantial number of properties that failed to sell was an opportunity for agents.

He explained that he made the discovery after he found many agents had different approaches to getting their next listing.

“Most used a combination of referrals from current sellers coupled with contacts they had built up over many years of working in their area,” he said.

“Others, particularly newer agents, cold called lists of homeowners, or door knocked and letter dropped in their area.

“What amazed me was not one of them approached last years’ unsuccessful vendors. Not one of them approached those vendors who tried, but failed, to sell their properties.

Using RP Data’s withdrawn listings tool, Mr Dickason worked out the potential commissions, based on a rate of 2.5 per cent, that were out there if these past listings could now be sold.

For example, in the suburb of Pymble in Sydney, an estimated 52 properties with an approximate value of $95 million equated to a loss of $2.3 million in commissions.

On a broader scale, in NSW, 34,543 listed properties with a value of over $17,747 million did not sell last year.

Capital cities combined, a total of 110,000 properties with a combined value of over $52 billion for those with a listed price were not sold, which equated to $1.3 billion in commissions.

Mr Dickason pointed to the case of a property in Windsor in Queensland which the owners tried to sell three times in the last one and a half years.

“The vendors have tried to sell around the $320,000 mark and have kept the property on the market for on average three months per listing,” he said.

“Last year they were probably over the market value for their property type and condition. Now, though, an automatic valuation report shows the property is worth around $325,000 - seems like it might be a perfect time to retest the market with a new agent.”

In conclusion, Mr Dickason said with the current market conditions, many vendors’ price expectations were not longer out of range.

“The price they expected to achieve last year and did not is now a price they might get.

“A simple search would find what they expected to sell for last year, which could help an agent approach them and could guide the conversation that agent had.”

State

Number listed that did not sell

Value of listings (where price was displayed in the listing)

ACT

1,945

Over $913 million

NSW

34,543

Over  $17,747 million

QLD

26,794

Over $13,201 million

SA

3,615

Over $1,406 million

TAS

3,543

Over $1,106 million

VIC

35,169

Over $15,486 million

WA

5,361

Over $2,998 million

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