How much can you get me?

April 14, 2020

It’s perfectly OK to start high…. because;

  • there’s a possibility that there’s a Heart Buyer just waiting for you! These are people with an unpredictable need or desire to buy your property. Sometimes, it’s as simple as a buyer that falls in love with it. Other times, it’s for more practical reasons like access, proximity to something, or not! (Like the daughter that wanted to buy a place close enough to her parents, so that she could walk to their place, but too far for them to walk to her place!) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  • No One Knows – what your place is worth. Sellers know what they’d love to get, bargain-hunters know what they’d love to pay. Valuers compute a range of probability based on comparable sales (meaning recent past sales) and then make a guess at a single figure. As your agents we’re focussed on negotiating the Highest Price Possible, so we add the “competition” into the equation – that’s all the other sellers out there in the jungle vying for the same buyers…mostly by offering a buyer attracting price.

 

  • We also take into account the state of the market. These charts demonstrate the effect of the market on our recommended pricing strategy. After having shared our research with you, we’re going to suggest we start at what we call… the Heart price….the price that someone who really loves it might pay, because to that buyer, there’s added value for some reason that we can never predict.   Heart buyers usually appear early during marketing, because they’re watching the market very, very closely. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How long we look for the Heart Buyer is shown in the yellow zone of this chart below. It’s a very typical trend of buyer interest over time. When you think about it, it’s pretty logical and explains why the first buyer is often the best buyer. These days, with instant communications and very well informed buyers, when marketing starts, almost 100% of the buyers become aware of the property within just a few days…especially the heart buyers who are watching for new listings very closely.

The best option for many sellers is to test off-market and keep some powder dry. We’ve labelled this our Head Start approach because it really does give sellers a head start before launching on market.

When the property is sold early, that’s great! Sellers can get on with their plans.

But what if it’s not sold?

Well, here’s what happens…

A frank and fearless review of the level of enquiry is the first step. We like to measure it this way…

  • The Swamp of Nothingness – we feel as bad as our Seller does when there is no enquiry, because how can we negotiate when there’s no one to negotiate with?

 

  • Action – yep, there are enquiries, but no bites.

 

  • Offers – we might have had the joy of Saying No! Or, maybe there’s more than one Buyer offer. Now we can negotiate!

At the outset, we explained the Heart Price and the Probable Price using our knowledge and actual comparable sales evidence. It’s time to attract buyers by repositioning the asking price closer to the Probable Price if we are “in the swamp” or not getting any bites. By the way, a question a stuck seller might rightly ask is “why can’t you just get me an offer?” …and we should explain why that puts us in a very weak negotiation position in another chapter, but for now, the guiding principle in this phase of marketing is clear: “If you overprice, you risk underselling”

The second consideration is to go to the market at large, this time with the Head Start of having tested the first asking price off-market. In a nutshell, we first marketed to thousands of people in our database. Going on the market means we publish your property on all the major portals and attract new buyers to your property. Read more about that here.

It’s like a having a second bite of the cherry because enquiry picks up very sharply again and provided we’ve pitched the price competitively, we can expect to be getting bites and offers soon.

This approach requires patience, we know. It’s worth it because you can rest easy that our professional, purposeful selling method indeed, gets the Highest Price Possible.

The surprising costs of getting it wrong, and how some Agents waste thousands of dollars of your money.

Wastage #1

Last century, Agents decided to compete with each other, on who had the biggest adds in the Real Estate Lift out guides (you’ll remember these if you’re old enough!)

Well, that got a bit expensive for agents, so the trend started where sellers were convinced by their agent to pay for unnecessarily large and expensive ads, using the initially correct logic that a large ad would stick out from the crowd. Problem was when everybody went with large ads, the only solution was an even larger ad! You get the drift.

This continues to this day, albeit in the online space rather than the good old Saturday lift-out guides. And the dirty little secret is that the person that benefits the most is the agent, not the seller. And that’s because the agent appears to have a bigger profile in the marketplace.

Here’s what we say.

Even a bad agent should be able to produce a list of buyers that might be interested. To explain, if 10 people enquire on 1 Smith Street, 9 are going to miss out when it sells. When 11 Smith St is listed, and say it’s like number 1, wouldn’t it be logical for the agent to want to show those 9 potential buyers?

Here at Caloundra City Realty, we invest so much effort and resources in this simple idea. We use professional systems, teamwork, hi-tech, and shoe leather. And the proof is in the pudding…we routinely conduct initial inspections by only advertising the property to our known buyers, and often with great success for our sellers.

Wastage #2

Is the cost of a cheap agent who can’t negotiate a fair fee for themselves, let alone the highest price possible for you. The saying goes like this…if an agent is cheap with their money, imagine what they’ll do with yours!

Here’s what we say:

for years, we’ve belonged to a peer group of ethical professionals, and are specifically trained in the art of negotiation with Buyers. For example, it’s okay to say “No thanks” to low offers, because we’d rather start the negotiations from a fairer price.

Wastage #3

Getting stuck with the Lemon Tag. We must be careful not to offend, but places that sit on the market forever waiting for prices to go up get overlooked by well-informed buyers who are following the market…there must be something wrong with it, they think.  And many will say (think of The Castle movie)…”They must be dreamin’!” and wait for for the price to go down. If they haven’t already bought a place by the time that happens, they have the upper hand in the negotiation, not the seller.

Here’s what we say:

There’s something wrong with the agent, or the seller has too much time.
Some bad agents will “high-ball” the initial appraisal in order to impress the seller and win the listing. The truth is the seller is competing with hundreds of others.

If it’s a buyer’s market and the price is moving “south”, then the costs of an agent not giving informed, professional advice can be huge! We call this the doctor theory: “Would you rather know the truth, or have a doctor that shy’s away with false hope?”

For sellers that have too much time, our advice provided it’s a seller’s market is: try, then if not sold, try again a few months later. This keeps the property fresh to the market on each attempt. If it’s a buyer’s or balanced market, then we start thinking like your doctor! That’s when a poor agent can be really expensive.

 

Thinking of moving?

Here at Caloundra City Realty, we offer our sellers a rock-solid written guarantee that we’ll not ask for a cent, including marketing costs until our seller sells. That simple. And we offer a professional marketing process that’s squarely aimed at the Highest Price Possible, that you can read in summary here.

If you’re thinking about selling soon or later, we’d love to work with you to help you get on with your plans. All you need to do is call us, or better still, send in this form and we’ll be in touch very soon.

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Caloundra City Realty

Article by Caloundra City Realty

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