In real estate, we all know selling is the name of the game. The more we sell the more income we earn. Or do we?
Vendors’ motivation to sell quickly can often push agents to list a property before they are ready to show it to the market. Yes, they may sell faster but you won’t necessarily achieve the best price for them. It’s possible a great property will be seen as overpriced if it is not presented in the best light, especially if it is on at the owner’s expected price.
So instead of the early bird catching the worm, I prompt my agents to be the tortoise and not the hare. When presenting a property there are a few simple things that can make a big difference but are often forgotten. Your asking price needs to match the market and can be pushed up with some easy cosmetic improvements to the property. A little paint and tidying up the yard can make hundreds to thousands of dollars difference in what a buyer is willing to pay.
You need to make sure that the property appears ready to move in to and there is little to no work the buyer needs to do. Also, make sure everything is clean and the rooms feel spacious and liveable. It might take a week or two longer to have the property ready but the difference in the sale price will make up for it.
Next, you should delay listing the property long enough to show it to selected, motivated buyers before taking it to the market. Buyers who have pursued other properties without success are likely to feel hesitant to repeat that and will be willing to pay a bit more for a property they can secure. Once they are emotionally invested in achieving satisfaction, not disappointment, they will pay a higher price to finalise the deal.
Showing the home off-market also allows you to get a sense of what buyers are willing to pay. Highlight all of the valuable points of the home and ask them where they see the value and what they would offer for the property. Many buyers will have already viewed a number of properties and can give you a price range for realistic market value.
Another option is to set up database only clubs, where potential buyers sign up to receive access to online property postings before they go live to the market. This allows you to grow your database of motivated buyers and give them the exclusive option of buying a property before anyone else sees it. For those homes that go to market, you can achieve the best price through emphasising buyer competition and fear of losing the property.
People are driven by fear and the more buyers that are emotionally involved and feel that fear of competition and loss they will be more likely to pay more and more quickly.
So the next time you’re thinking about racing a property to market sit back, take a breath and remember faster doesn’t necessarily mean better.