Our top Valuer, Adam Horton has taken over the blog for the next few weeks, read the latest here . . . . .
Over the next couple of weeks, I’ll be writing a series of 5 articles that provide a failsafe ‘go to’ guide for anyone thinking about selling their property. The appointment of a top quality agent that executes these strategies can be the difference between having absolute confidence that you have received the best offer from the best buyer or achieving mediocre results (or no results at all!).
These 5 articles will cover property presentation, marketing strategy, monitoring and feedback and assessing the strength of an agency’s team.
All of the factors I mention are tried, tested and proven tactics I use on a daily basis that have delivered value to my clients time and time again. Make sure your agent is delivering on every item and you will be well on the way to getting optimum results.
I would like to start by discussing what I believe is the most important factor to achieve a successful sale – correct pricing.
Get your price right, and you will have more chance of achieving a successful sale. Get it wrong, and your property could end up staying on the market for longer than necessary, which could have a negative effect on the price you end up achieving.
The first thing to consider is separating an eventual selling value from a marketing price. They are two very different factors and must be considered independently.
When I go and see a client, the first price we discuss is the realistic selling price. I give this advice based on years of market experience and from research on every aspect of the market. Once this price has been established, the next step is to look at the best way of achieving it via a marketing price.
Over pricing can cause the property to become stagnant in the market and runs the risk of becoming a property nobody wants to buy. The aim with the marketing price has to be to entice the maximum number of potential buyers as possible and become a property everyone wants to buy. This creates a sense of urgency and gets buyers acting with focus and determination. It’s then the agents job to manage the demand and effectively negotiate to ensure the very best price is achieved.
The most common methods are setting a fixed asking price or using ‘offers above’, guide prices or price on application. There is no set rules for the best method – but we look at a number of aspects to determine the best course of action.
A final and also critical element to take into consideration is ensuring the pricing gives you maximum exposure on the property portals. This is often overlooked and has a direct impact on the amount of traffic your listing receives.
As an example, lets say that you are selling a property priced at £99,950 and a buyer is looking on Rightmove and sets their search requirements for properties priced between £100,000 and £140,000. Your property could meet their requirements but due to pricing the property at £99,950 would mean it does not show up in the search results as it falls below £100,000. This limits your potential marketing reach. To remedy this, list at a price that is shared between two price increments in order to appear in search results of buyers looking in lower price brackets, between £80,000 – £100,000 for example, as well as the higher price bracket of £100,000+. However, this becomes less relevant for higher value properties as the price increments become wider. As a general rule of thumb, if your marketing price is within £1000 of the nearest price increment, it’s worth while changing to a round number that would be shared between two search ranges as the listing is more likely to receive wider exposure.
These factors must be tied in with rest of the 5 steps. The next article will cover marketing strategy, looking at all of the tools that a top agent should be using. Please follow me on LinkedIn (https://uk.linkedin.com/in/adamlhorton) to be notified when the further four articles are posted.
For more information about Kirk Estates, please visit www.kirk-estates.com
Adam Horton, Valuer #TeamKirkPosted on 10th November 2015