I Want Top Dollar

Where does your property really sit in the market? 
The answer to this is determined by a willing buyer and willing seller negotiating a successful outcome.

However we want some direction as to where this might be.

Since before the days of the Romans and Greeks, sellers have offered up what they don’t want, (Sell something that has value) in exchange for something they want more (often this is money). The buyers do the same. They trade money to purchase a home, status and lifestyle. In the end both get rid of what they value less and end up with something they value more. A true win-win.

“But”.. I hear you say “I’m scared of under selling. I want to make sure I get the best price so how do I know what price to offer my property at?”

The answer is in a fully documented CMA (Competitive Market Analysis). Some call it a Comparative Analysis, but I say “Competitive”, in that when you do sell, you sell in competition against others with similar attributes. Price your property too high and you’ll simply be a tool for other agents to sell off yours and onto other homes offering better value.

So yes, you need to be competitive.

You should know where you are value wise
If you’re the cheapest or most expensive it’s easy. But where should you sit amongst others.

Is there a rule for this?

Generally, I advise my clients that if they have been on the market and are not getting anyone through their home opens, then the market does not perceive value.

You need to change price. If you get plenty of views on the web but no offers, your asking price is probably around 5-7% too high.

From my experience it’s unusual for a home price within 5% of its probable selling price, not to get an offer.

Now this doesn’t mean that you’re always going to sell for 5% less than asking price, but rather that a property at value may attract multiple offers. This competition can drive the price up often more than 5%, so surprisingly, a property “at market” can often sell for the best price. Why?

Emotion is Logic.

If you were trying to figure out a property’s value, one way would be to add the land value, to building costs, add in carpets, curtains etc. as well as gardens, fences, pools and a long list of other “assets” to be included in the price. Adjust this for depreciation and wear and tear. This would give you a ‘logical value’. Unfortunately, however, the market wont always pay this figure, sometimes it’s more, sometimes it’s less. This is due to supply and demand and the buyers’ emotional connection to the property.

Let’s take a note With purple carpets. They probably cost the same to install as beige carpets, However less people desire purple carpets. For those that do like them, there is value. For those that would have to change them, there is a cost. Both dollars work and potential stress.

You can see the role that emotions can play. However emotion can decide price up. Imagine two or more buyers want to buy. Their desire is heightened by the competition and they may well pay a premium to own the property and “knock off” the competitors.

Creating competition is one of the key roles of the marketing. It is here where a good agent can add value within excess of their fees.

What do I do if I get an offer in the first week?
It’s a great question that’s often asked.

The answer is, it’s often not about you, rather it’s about the buyers. It could well be that a buyer has been in the market for some time. The may have made multiple low offers on other properties and missed out.

Then at your VIP opening they decide that this is the one. They know they may be competing with other VIPs. These people know that the others at the VIP Home Opens also have pre-approval and can compete. This competition often provides the best outcomes for our clients.

Remember, no one says, “lets rush and put a high offer on this property” if it’s been on the market for a long time. But many say, “it’s just come on the market and it seems like good value. We’d would better be quick so that we don’t miss out.”

Come along to one of our VIP opens yourself and see this strategy in action. Give me a call and I’ll be happy to book you into my next one or one similar to yours.