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Selling property is what we do, and the more we sell within a given timeframe, the more income we generate. Because of this sense of urgency our vendor motivation can drive us to list properties before they are actually ready to show. They may sell more quickly, but we won’t get the best price for them. In fact, a perfectly good property may be perceived as being overpriced if it is not presented well, especially if it is listed at the owner’s expected price.
There are some important aspects of presenting a property that are often overlooked in the rush to list. First, your asking price needs to be in alignment with the market, but pricing can go higher with a few cosmetic improvements. Before your first open for inspections or private appointments you want to make sure the property appears to be ready to move into with minimal work by the buyer. A little paint and yard work can make hundreds to thousands of dollars difference in what a buyer is willing to pay. It’s a good idea to make sure that everything is clean, and the interior looks and feels spacious and liveable. This kind of detailing might take a week or two extra, but the difference in your final sale price will be worth it.
Once the property is ready for viewing you can delay listing it long enough to present it to select motivated buyers before posting it to the market. If you have buyers who have pursued another property through a full campaign and then lost it, they are likely feeling hesitant to repeat that experience of loss and would be willing to pay a little more for a property they can secure. Once they are emotionally invested in achieving satisfaction rather than disappointment, they will pay more to make sure they can finalize the deal this time.
Another advantage to showing the home off market to prospective buyers is that you have an opportunity to get a feel for what buyers are willing to pay by asking them what they would offer for it. Show them all the value points, and then ask them where they see value. Most buyers have already seen several other homes and have an idea of what the market is like. They have decided what they are willing to pay and can give you a price range for realistic market value that you can take into the market.
Some brands have established “database only clubs” where potential buyers can sign up to receive access to online postings of properties before they go to market. This is a great way to expand your database with motivated buyers by offering them the added value of exclusive privilege to purchase properties before anyone else sees them.
For properties that do get listed and go to market you can get the best price possible by emphasising to buyers that they have competition and must act or risk losing the property. People are driven by fear, so if buyers are emotionally involved and feel that fear of competition and loss they will be more likely to pay more and buy more quickly.
Know these options and have a strategy for presenting well, motivating buyers, driving competition, getting the best price possible for your properties and meeting your vendor expectations.
I hope you’ve enjoyed today’s Coaching Tip and I look forward to seeing you here again next week.