The Right Timeframe For A Sales Process

When you’re selling a property, you’ll want to consider how long it will take to complete the transaction. While it can vary depending on the market and buyers involved, I have found that working within a controlled timeframe can help maximize value. A typical property sales process that I carry out with my team often spans six months from start to finish.

Here’s a breakdown of the steps involved, along with what to consider when working within an established length of time.

A Six-Month Timeframe

There are several stages to get through the sales process. It generally starts with gathering marketing materials and finalizing them, which takes about two weeks. This is followed by six to eight weeks of actively marketing the property. I always encourage owners to maximize a property’s exposure, which includes putting it on multiple listing services, cooperating with the brokerage community, and raising awareness through social media. This can help the information reach as many potential buyers as possible.

During this period, prospective investors might reach out and ask for information about the property. They could also tour the place and submit offers. The following step involves negotiating a contract, and this usually takes several weeks. Once an agreement has been reached, between 60 and 90 days are typically needed to close the transaction. You can learn more about the contract and closing process in my podcast, “The Insider’s Edge to Real Estate Investing” Sell High Series, in the episode, “How Does the Contract and Closing Work?”

To make sure you can follow this framework, you’ll want to work with a broker who is familiar with the market where you want to sell and can help you with the process. In my book, “The Insider’s Edge to Real Estate Investing,” I discuss ways to find a broker and build a relationship. This can be helpful in the long term, especially as you buy or sell other properties later.

The Risk of Waiting

If the sales process takes longer than six months, and drags on to a year or more, there could be a loss of momentum. Buyers may not be as interested in completing a transaction if they have to wait. The property could seem less attractive if it lingers on the market for an extended period. Investors might be concerned that there are issues with it, or that the price is too high.

Understanding Early Offers

Just as dragging out the sales process can create risks, moving forward too quickly could have other disadvantages. If a property is in a really hot market, some buyers may try to offer the asking price to preempt the sales process. While this can be appealing, accepting the offer too quickly could close other doors. It may not allow the seller to explore other offers or fully test the market. Without the benefit of multiple offers, it can be difficult to know whether the seller is truly getting the most value. For this reason, preemptive offers—those made before the property has been fully marketed—are generally not in the seller’s best interest.

Maximizing Value

One of the main advantages of running a sales process within a set timeframe is that it can create competition among buyers. By getting multiple investors or end users interested in the property at the same time, sellers can increase the chances of receiving higher offers. However, if buyers enter the process at different times, it could be more difficult to bid against each other and this can reduce the seller’s leverage.

While it may not be a first consideration when selling a property, timing plays an important role, especially when it comes to maximizing value. A well-managed and controlled timeframe can help to maintain momentum, keep buyers engaged, and create competitive bidding. You’ll want to work with a broker who can help you move through each step of the process. Once you have an established timeframe, you can gather information and look to reach as broad an audience as possible. You’ll then be on your way to getting the highest and best price for your property.