Five Small Misconceptions That Can Cost You Big Money
By Craig Lowe
1. "My home will be easy to sell."
If your home is desirable you can probably sell it very quickly – either privately or through the cheapest agent. However, the more popular your home is, the more skill it takes to maximise the number of interested buyers and achieve the highest possible price. Because the true market value of a home is impossible predict, a good salesperson can have a lot of influence over price buyers pay in a competitive situation. In other words, the easier your property is to sell, the more value you will get from using a good salesperson to sell it.
2. "There is no benefit in using print advertising to sell your home."
Print is more expensive than online advertising but for extremely high value items such as houses, finding one extra buyer can mean achieving tens of thousands of dollars more for your property. You only get one chance to sell your home for a great price, and casting your net as wide as you possibly can is the correct thing to do. It stacks up to spend a bit more and advertise in both print and online print media.
3. "You don’t need TradeMe to sell your home."
TradeMe dominates internet classifieds. More buyers will see your property if you use TradeMe than any other website. In fact TradeMe is by far the most cost effective form of advertising across all forms of marketing, even after the recent price hikes. Anyone who tells you not to advertise on TradeMe should not be trusted with the sale of your largest asset.
4. "Sale by Tender doesn’t work."
If you’re holding the golden egg – a high quality property that is likely to be popular in the marketplace – then NOT running a competitive process such as a Tender or Auction is likely to cost you an eye watering amount of money. The most popular competitive method of sale in Wellington is the Tender process by a long margin. Tenders benefit buyers by giving them enough time to conduct proper research. The seller benefits by ensuring the property has been exposed to all interested parties and consequently achieves a more competitive price. Anyone who says that Tenders don’t work probably has an agenda counter to yours – either an agent who doesn’t want to work as hard for a sale, or a buyer who prefers a bargain.
5. "We want to choose the neighbourhood agent to sell our house."
When an agent lists a few homes in the same suburb, their brand awareness goes up in the area. The perception is that the neighbourhood agent must somehow be better at selling in that area. They have successfully invaded the mind space of other potential home sellers – and that’s good for them. But from your perspective, choosing the agent who sells homes exclusively in your area may not be the right thing to do. Just because someone has a local office or has sold a few homes in your street doesn’t necessarily make them the best person for the job. The marketing and negotiating skills of the salesperson are far more important than which suburb they have chosen to build their own brand in. If you’re thinking of engaging the local agent, find another agent with a good reputation and ask them both to present their methods of sale to you. When choosing who to employ, focus on each individual’s strategy and how they intend to get you the highest price, not how many sales they have in the area. Buyers don’t care what colour the sign on the property is – they want the home that suits their needs best.
If you're thinking of selling and want a premium price for your home, call me on 021-764-647 for a free no obligation appraisal.