By Craig Lowe
Simply selling a home is not hard. However ensuring you receive the best the market has to offer is more complex than most people realise. As the process unfolds the seller and agent must be aligned on a clear strategy to obtain the best possible price. All too often the agent or owner does not have a defined strategy to get the best possible dollar. High prices are obtained through clever thinking and a clearly defined strategy.
Make sure that your agent explains the entire process up front and challenge them on why they are recommending a certain approach. Real Estate Sales is an inexact science and requires quick thinking supported by a strong underlying strategy. The high prices do not come from sticking up a sign and running an open home, they come from a detailed well thought through and well executed approach.
As I have already said, selling a house is not necessarily hard. It’s getting the high price that needs the skillful handling. Regardless of how good an owner or agent is at negotiating, it is difficult to get buyers to pay a premium if only one buyer is offering. Typically that leads to an ‘us and them’ tug of war type situation. If a buyer thinks that they are the only interested party then they will invariably offer low and be difficult to lift up. They hold the power.
Alternatively, a competitive situation between multiple buyers ensures that the focus of the buyer shifts from beating you down to your lowest dollar to focusing on beating other interested parties. The only certain way to create multiple interest and offers from several buyers is to run a comprehensive marketing campaign. Now don’t get us wrong here, extensive marketing is not essential to selling a house, but it is essential to getting a premium price.
Quite simply it comes down to creating competition amongst buyers to buy your home. In the local market our research suggests that as many as 37% of homes sell to what we call ‘passive buyers’. A passive buyer is someone who buys that was not actively looking in the marketplace. Most of us have personal experience of buying like this. We are quite happy living in our home when one day we drive past a for-sale sign or we see an ad in the paper for an interesting looking house. With no real intention of buying we view the property and suddenly we start thinking seriously about it. Before long we get caught up in the process, buy the house and a few months later we have a new home.
This is a very typical scenario, especially in the Seatoun market where every home is so unique. Most homeowners realise that the hills and topography make very few houses the same as another. So when the right house pops up for sale, you need to buy it because it is not easily replaced. Now this huge pool of passive buyers can only be reached through marketing. They are not registered with a real estate agent because they do not realise that they are in the market to buy.
Marketing is absolutely critical in adding as many buyers to the competitive pool as possible. Then the agent’s real job begins of managing this multiple buyer interest to squeeze the highest possible dollar for you as an owner. Having a salesperson that understands how to create competition amongst buyers is absolutely critical and the alternative could mean you miss out on tens or even hundreds of thousands of dollars, without ever even knowing it!
And remember, there is more than one agency/salesperson that know your area and your market. Please feel free to call me anytime on 021-764-647 to discuss the right selling strategy for your home, and a comprehensive report on your homes current value, free of charge.