Recently, in an inner Melbourne suburb, a family was trying to sell a property belonging to a deceased relative. The apartment was located in a complex of 30 apartments targeted at retirees. It was purchased off the plan in 2006 for $700,000.
When it came to selling the property in 2013 many similar buildings had been constructed nearby, so the apartment had very little point-of-difference to cling to in such a competitive market. Further to this, the apartment could only be sold through private sale due to restrictions imposed on the apartment complex itself.
After having several agents visit the property, the family decided to hand the sale task to Agency A. Agency A appointed their top sales agent (by sales revenue) to the task, which was an added feeling of relief for the family, as the apartment couldn’t possibly not sell with such an acclaimed agent running the show, surely! Their new agent believed a sale price of $750,000 was attainable at private sale.
5 months passed, and the family was concerned that few of the 40+ people who had visited the apartment during scheduled open for inspections had made an offer on the property. Confused and out of pocket in advertising expenses that weren’t having any success, the family approached another local agent, – Agency B. They were desperate to sell the property, or at the very least gain some interest from potential purchasers!
Agency B instantly saw opportunity. He felt the styling in the house did not resonate with the target demographic, so suggested hiring an interior stylist to re-decorate the property to create the desired look and feel. He also suggested putting print listings in local newspaper property sections, rather than pouring dollars into online mediums that the target demographic did not use as a primary point of reference. He then changed the Open for Inspection technique and had 2 agents on site, for maximum impact.
Ready to take a risk, the family decided to pass the sales task to Agency B. Within 6 weeks, the property had over 7 potential buyers making offers. They finally settled on a price of $900,000, $150,000 above the maximum expectation set by Agency A.
This just goes to show, if you have an agent who understands what local purchasers want, you will win in the competitive game of residential real estate!