Missing the market
Following on from my first column, on Real Estate traps … and how to avoid them, the third mistake sellers often make is missing the market.
Naturally every owner wants a chance at the top price and all sellers wish they could sell at the top, however the internet has changed the sales process dramatically and you need to understand how the new rules will affect your property sale.
The pricing component at the beginning is the most critical portion of the process. Although your property’s price will be based on its attributes and homes similar to yours that have sold in the area, keep in mind that there is also the price of your competition to consider.
The reality is that buyers today are instantly notified when new properties within their price range are listed via online real estate portals. This means if you list at a higher price, with hopes that your negotiations with buyers will bring the price down to a price you’re OK with, you may miss some buyers altogether and it is very hard to recover that lost opportunity.
Getting it Wrong, Wrong, Wrong
The fourth mistake/s sellers often make is choosing the wrong method of sale, the wrong agent, and the wrong strategy.
Currently the most common method is private treaty, which is a normal or fixed price sale wherein the seller puts a price on the home that is comparative to others.
Another method is auction, where there is no price but rather an auction date where potential buyers bid on the property. With this method, there’s usually a window of 4 or 5 weeks from the day it’s listed until the auction date and the property therefore may sell prior to, day of, or post auction day.
Another method growing in popularity is called ‘Offers Over’, which places a guide on the price that you don’t want buyers to go below as a starting point.
When choosing an agent it is recommended that you select one that has a local presence and local knowledge, and remember to ask for testimonials from past clients too.
Choosing the right strategy
Hand in hand with selecting the right agent is choosing the right strategy, of course, selecting a qualified agent usually equates to a qualified marketing strategy.
Agents should come prepared with a marketing strategy in mind, and not expect sellers to provide the approach or advertising channels they want to use.
For starters, agents should at least have a three-month marketing plan that takes into consideration the current market conditions. And do not accept a simple core flute sign, amateur photos or an inferior website.
Raising the bar
The fifth and possibly the most common mistake sellers make is not knowing or failing to enforce marketing standards.
Qualified agents will always use a professional photographer, a professional floor planner, videographer, and utilize online strategies like Feature Properties and e-marketing.
In my opinion, all of those things are industry and marketing standards, which all informed sellers should insist on.
It is my experience that the more informed and inclusive the buyer can be in the selling process and the presentation of their home, the better the final result will be.To obtain the best results sellers not only have to prepare their home for listing, but they should prepare themselves as well.
In brief: Know the market, choose a qualified local agent and always insist on marketing standards.
CONTRIBUTOR – Adrian D’Amico: Business Owner Sales & Marketing Consultant – Harcourts Wollongong. Adrian is an enthusiastic Real Estate professional who has the ability to recognize and understand the necessities of his clientele. He has survived the test of time in the real estate industry, remaining devoted and passionate about his profession.
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