LIST PRICE RECOMMENDATION
It is imperative in current market conditions that we get the initial price point correct. As the last thing we need is to position the property too high, and then have the difficult task of chasing the market.
It is also important that we look at what the different methods of sale are, as in some conditions, different methods may suit better than others.
We do have differing methods of advertising your property for sale, each with pluses and minuses, and we could look deeper into each method depending on which method you feel most comfortable with.
• Private treaty, using a fixed price, a range or an invitational price point , such as, “Offers from”, ”Buyers over”
• Auction, where we utilize an aggressive 4 week No price campaign, and allow buyers to tell us what they feel they would pay.
• A no price campaign, such as Offers Invited, Price on application, Contact agent etc. Buyers generally do not like this method, and if we are to use a no price campaign, Auction would be the best process to engage.
Below I have outlined my Buyers over strategy, as this is my recommended and most successful method of achieving the right price, however, I am happy to discuss all methods in more detail.
I believe that this strategy deals with the current market very well, as it allows us to be a little more aggressive at the beginning, without needing to change our expectations.
So, I would like to suggest our BUYERS OVER approach we have to offer. I have been using this strategy successfully for the majority of my sold properties, where we have a low price as a guide and we invite all buyers and offers over and above this amount.
The strategy here is that if we get a higher than normal interest in the property, we will have buyers fighting each other to secure the property, which in turn drives the price up. This is what occurs in a “sellers” market. With no ceiling on the advertised price, we can often see prices exceed expectations.
We also know that buyers do buy up, and as such, buyers saying their budget may be lets say $400,000, will actually be the buyers who will pay in the $400,000-$450,000 bracket, so if we were to be looking to achieve a sale price in the $400,000-$425,00 range, we would look to attract buyers, with a Buyers over $395,000 price point, with the view to working them up to an acceptable level.
Clearly the positioning of the property would depend on the value of your property and what we are looking to achieve as a sale price, however, the philosophy of the strategy remains the same. This is not to say you will need to look at selling at this level – it is merely a tool to get buyers in to inspect the property, and it is then for me to present you the best offer I can over and above this amount. Please see below examples of how this strategy has worked;
• 4x3 in Halls Head – listed at Buyers over $550,000 and sold for $583,000
• Land in Dudley Park – listed at Buyers over $549,000 and sold for $570,000
• 4x2 in Dudley Park – listed at Buyers over $695,000 and sold for $725,000
• 4x2 in Halls Head – listed at Buyers over $550,000 and sold for $580,000
• 4x2 in Halls Head-listed at Buyers over $495,000 and sold for $520,000
If we didn’t have the low prices to attract buyers to the property, they may not have viewed the property at all so we wouldn’t have the opportunity to work on them. I am sure you would like to have an offer to consider and at least be able to counter offer something. Advertising in this way will get you offers to consider and the worst that will happen is you counter offer and ultimately reject any offers that you are not happy with. All in all we are looking at strategic ways of generating interest into the market. Your final sell price or expectations do not need to change, all we are doing is changing the way we advertise the property to get a buyer through, show the value, and get them on paper. Once they are on paper we are almost there!! This process really works !!)