By Guest Contributor,
I’ve been attending networking events for a long-time. I’ve spoken to hundreds of business people about what they do and what I do.
When I share that I’m a Real Estate Agent, there is ALWAYS one question they ask.
“How do I get the highest possible price for my property”.
There are two ways we have to look at this:
- Your goals – the dream price that buys you the next dream house or the holiday, or [insert very exciting thing that extra cash could buy]
- Fire Sale (in case all goes pear-shaped)
- The market’s expectation.
Setting an unrealistic price will deter buyers in the early stages of marketing and lead to your property taking longer to sell. Buyers will often ‘save’ or ‘watch’ a property online waiting for a price adjustment to happen.
The value of your property can depend on factors such as:
- The state of the market – are there more buyers than properties or vice versa?
- Current interest rates, plus prospect of rate rises.
- Location, proximity to transport, schools and other amenities which make the property attractive to both owner occupiers and investors.
- The type of property, size, age, features, uniqueness and general condition.
- The sold prices of similar properties in the area, although it’s not easy to compare ‘apples with apples’ a general indication can be taken from the median price in your suburb.
Friends, family and of course your neighbors will also have an opinion on what price your property will fetch on the market. But chances are their estimations are not as accurate as your agent’s and they will be likely to tell you a price which makes you happy!
Ask yourself: Are they actually going to buy your property or is it best to consider those who are in the market to purchase?
One of the keys here is to have realistic expectations which are in line with the market. Of course, an agents job is always to get a record price but is always a result of having a sensible starting point.
Don’t get to caught up with online calculators these use algorithms to give you an estimate, however, they can’t take into consideration factors such as competition, any renovations or the general condition of your property. A good agent will also be able to objectively educate buyers on the limitations of these online tools when these values are presented as an objection.
The true value of your property is what a buyer is prepared to pay. However, all aspects of the marketing need to be aligned to engage the ‘heart’ buyer, that’s the one who wants your home no matter what! These buyers are the ones who will pay a premium price. To engage these buyers you need to get them to attend an open home as a starting point, if your price point is set out of line with the market, these buyers will not engage and you won’t have the necessary interest required to start the buying process off.
Ultimately, the market will decide what it is prepared to pay, but you need a realistic starting point. Your experienced local real estate agent will provide the best indication and strategy to ensure you achieve the best possible price. I recommend you do your own research before speaking with your agent, this will ensure that your price expectations are aligned with the local market.
Be very aware of those agents who will ‘buy’ your listing by telling you a price higher than expectations and which can’t be quantified with recent sales in your area. You can be assured of stress down, track when your property fails to attract buyers interest in the early days of the campaign. Mostly, buyers will have researched your property before they inspect. These days buyers, sellers and agents all have access to the same property price information. In the digital age, there are no secrets in real estate.
It’s imperative to get pricing right from day one! Interest in a property it at its highest during the first 14 days of a marketing campaign, after which it drops off significantly as buyers wait to see if there is a price reduction. With no buyers showing interest, there is no competitive tension. Real estate is like sport, competition drives great results!
There are essentially three prices at play in any property marketing campaign – under market price (sometimes due to external pressure on a vendor)fair market value and the vendors dream price. My goal is to obtain the latter by working through a systematic process when marketing a property.
Every property needs to be marketed with the expectation that your sale will result in your ‘dream price”. Remember your property is in competition with other properties on the market at the same time and so needs to be a standout. From early discussions with your agent, they should be recommending what you need to do to prepare your home and present it’s premium position to buyers. In short, you have to back your property. Excellent photography and floor plans will bring buyers to the door and choose an agent who runs world class open homes is a must.
Selling a property is like selling any product in your own business. You need it to look good, feel good and be priced RIGHT.
That’s my specialty. I’d love to know how my business can help you and your family.
You can always find me at The Business League, or through searching Premier Real Estate.