Pricing Your HomeGETTING THE PRICE RIGHT
Getting the price right is an extremely vital step to a successful sale of your property.
We at Elders Real Estate aim to achieve the highest possible price for your property.
Below is the “Buyer Curve”. This shows the amount of activity you will have once you have listed your property and also when most of that interest will occur.
When a property first enters the market, momentum is generated, because all the qualified buyers (those in the price range who have been looking around for some time and are ready to buy) will discover the property for the first time.
As you can see, most of the interest from Buyers comes in the early stages of the sale process and buyers are most likely to make the highest offers for fear of losing out to someone else.
These days Buyers are well educated in the property market and have studied it closely before starting the search for their property. This means that it is very important that you have your property priced right so that the educated Buyers will see the value in your property and make an offer. If it is priced too high they will just move on to the next one and you will have missed a sale
We suggest that the asking price for the initial marketing be set (in line with your instructions) a little higher than we expect the market to bear.
BEST PRACTICE 2-2-7 RULE
Should the initial marketing not attract the desired offers, it may be necessary to consider varying the asking price. If the price remains the same for too long, the momentum of the marketing program is likely to fall away, affecting the property’s profile and competitiveness.
It is important not to vary the asking price too early because it sends a signal to prospective buyers that the price is not genuine. or that the vendor is perhaps too keen to negotiate. Varying the asking price too late sends a signal that the seller is not aware of, or prepared to listen to, market forces – in other words, not genuine or realistic. Qualified buyers lose interest and the opportunities for receiving high offers diminish, along with the potential of achieving the best price at the end of the day.
Research with past satisfied sellers tells us that there is a simple two-point rule indicating the appropriate time to vary the asking price. This rule is known as the Best Practice 2-2-7 Rule. There are two conditions which must be met before this rule can be applied.
1. The property must be well-presented and,
2. The property must be professionally marketed to attract the attention of all current prospective buyers in the price range
Provided these two conditions have been met, research indicates that residential real estate achieves its best price if the asking price is varied when there have been two advertisements and no response, or two open homes and no shows, or seven inspections and no offers. In these circumstances best practice indicates that the first price variation should occur at the start of the third week of marketing. We suggest that we schedule a face to face meeting with you on the fifteenth day from initial marketing of your property to review the marketing program.
It all comes back to choosing the right agent. With the right agent, selling your property should be hassle free and an enjoyable experience.