Selling your home is one of the most important transactions you will ever undertake, so the opportunity to create the very best result is paramount!
Over the years I have learned that a premium result doesn't just happen, it is created.
I have produced this easy-to-follow guide to help you understand the premium price sequence and utilise these crucial elements in your future property sale.
This is probably the most known however widely forgotten element in a property sale.
When you’re selling your home, the first impression the property makes on potential buyers is crucial. Get it right and you’ll hopefully be inundated with offers well above what you had hoped to receive, but get it wrong and you might struggle to receive any reasonable offers at all.
Presentation is about preparing your property for sale in a way that will transform it into a welcoming, attractive product that will appeal to a broad range of buyers. By doing so, your home should spend less time on the market and sell for the best possible price.
In the modern era of smart phones, we have only a few seconds to capture a buyer’s attention before they swipe on to the next property. First impressions are absolutely critical! It is the photos that are going to encourage a buyer to click through for more information, so presentation is paramount to ensure that your property stands out from the crowd.
The atmosphere inside your home will improve its desirability, which will then lead to increased competition and ultimately, a higher selling price.
As a professional agent, I am able to provide advice on what will best appeal to the senses of prospective purchasers for each property as an individual. Every home is different and so too the advice.
Quite often homes will require landscape attention and others furniture restructuring, while some will only need a freshen up in paint colours.
This element of your property sale I would say is the number 1 element that will create a springboard for your future sale.
Building an exceptional price usually comes about by first engaging the market place with some logical price evidence and positioning.
In most cases a buyer will first look for value evidence before they book an inspection. They will be comparing your property online with other properties in the marketplace to determine if your property appears to show reasonable value.
This is a rule that is handy to remember: Buyers start logically and finish emotionally
Once the buyer has determined that the property presents reasonable value in the current marketplace, then they will move to the emotional connection with your property provided the general feel and criteria of your home suits them.
Buyers need to go through this process in order to educate themselves on the property market and have confidence prior to purchasing.
Once a buyer becomes emotionally attached, it then becomes a lifestyle decision rather than an exact dollar and cents decision. It is in this highly emotional part of the equation that an opportunity for a premium result will be found.
If a buyer feels your property is overpriced then it will stop them moving to the emotional part of this process. Even if they like the property, logically they just don’t agree and quite often they will leave the property without becoming engaged.
This is why some homes sit on the market for extended periods, more often than not there isn't anything wrong with the home, it is more that the market place isn't agreeing logically with it.
The right method will go hand in hand with price. There are only two methods that work effectively in residential real estate:
Auction
The auction method is great for homes that are highly desirable or hard to price exactly. The auction method leaves the outcome open whilst also accelerating the sale process. This really does compel buyers to make a buying decision prior to the auction date which can create and heighten the sense of urgency and excitement in the buyers minds and ultimately help in the premium price formula for some properties.
Auction isn't for all homes however it is invaluable for others.
Private Treaty (normal sale)
This method is suited to homes that are easy to price or have firm comparable sales available, allowing your agent and/or the owners to agree that the value of the home is easily gauged within 2-3% of the estimated value.
This is the way to go if a home is easy to price and has a number of close comparable sales that are relatively recent. The private treaty method gives the market place total clarity on what you are asking for your property and is received very well by the market. The only danger with this method is that you run the risk of over pricing or under pricing your home if not assessed properly in the beginning, which can be a very costly mistake.
Private Treaty is the most successful method of sale on the Coffs Coast.
Quick Tip: If you think that many people will love your property and that the price could vary from purchaser to purchaser, auction your home. If you can price your property accurately and feel that the buyers will agree with your price point based on recent comparable sales, then private treaty is the way to go.
The right marketing campaign for your property is like the fuel of your property sale.
If you consider that across a number of suburbs there may be hundreds of properties that buyers could choose from at any one time, the effectiveness of your marketing campaign will be the difference between a lot of potential buyers noticing your property, or some potentially missing it.
There is something you should remember about marketing: The structure and quality of your marketing campaign will determine the amount of separation you create from other competitive properties in the market place.
Marketing isn't just advertising. It also consists of:
• Your internet and social media strategy
• Your agency’s database capabilities
• Your agency’s unique positioning tools
• Advertising
• Signage
• The synergy of the office you select and networking capabilities both local and nationally
• The quality of your photography
• The buyer-centric design of your marketing format
The right marketing structure is essential in ensuring this premium price element is maximised, however an individual assessment of each property is required in order to design a program that suits you.
Some are highly skilled while others are not, just like in any field. Your agents crucial function is not to just show buyers through your home, it is to help you protect your price.
Their negotiation skills are paramount.
Unfortunately negotiation is not a trained skill in the industry, however it is the main reason you engage an agent: to help you determine and achieve the strongest possible price.
Negotiation begins during the first conversations with your buyer, not just when the first offer is received. It is your agents’s job to build value in the property during their conversations with your buyer, whilst always protecting your price.
You can only base your selling decisions on the quality of information you receive from your agent during the process, and their skill set will determine the quality of that information.
Our ultimate goal is to build competition among buyers, and there are a number of strategies that we employ in order to generate competition. If handled correctly, it is this perception of competition that will give you access to the premium result.
This is where the process culminates.
Having the choice of multiple buyers is really what you are aiming for. This doesn't always happen but it can more often than not if the other elements fall into place.
All of these elements act as a foundation or spring board into the market place supporting this outcome. Without all of the previous elements being covered and maximised you can never confidently know that you have given yourself every chance of securing the very best outcome.
Premium buyers are created through a sense of urgency, as well as the development of emotional attachment.
Remember the rule: Logical - Emotional
The outcome of dealing with an emotional buyer can mean that they will spend 5-20% more on a property than they first intended. The key is giving yourself the chance to deal with more buyers who are emotionally connected.
This is where the magic happens.
Here is a recap on the formula for achieving a premium price:
Once these have been achieved you can sit back and enjoy your selling experience.
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