A good time to buy – can also be a good time to sell

A good time to buy – can also be a good time to sell

In last week’s newsletter, Steve talked about how the current market is seen as a buyers’ market.

But what about the poor vendor!

I thought I would take my opportunity to talk about the last few months and how vendors can still achieve great prices in what is being reported as a buyers’ market.

Over-priced properties have been justifiably hammered and if your agent doesn’t take full control of the selling process to substantiate the highest reasonable selling price, then buyers will get away with real estate murder and the vendors are losing, without a fight.

I believe every vendor should be able to achieve a strong selling price in any market and then with some luck and good negotiating, buy well through agents desperately trying to close quick sales. So vendors, play it right and you can have your cake and eat it too!

To sell at the top you must have a perfectly developed campaign, where the strategy is focussed to attract the property’s ideal target market as they are the only group who will pay a premium price. Introducing additional buyers through local and international database management will add vital additional buyers. Being capable of enhancing a buyer’s emotional commitment to a property will drive up the price especially if this positive buyer response is supported with a well thought out selection of comparable sales, which will focus buyers and show how your property represents good value.

For most buyers, “No” does not mean “No”. More often than not it means “you haven’t convinced me yet”. Mark and I are in constant contact with the best buyers presenting them with well constructed purchase rationales on the basis that people recall 75% of what they read and only 25% of what they hear. Call it positive reinforcement but all buyers need to have all the key facts in front of them before they will sign the contract.

Don’t get me wrong, I respect it is every buyer’s duty to buy for the lowest possible price but the difference between a good and poor result is always around 10% to 15% and agents are throwing away $100,000’s simply by blaming a tough market and voluntarily discounting their clients’ properties. With selling periods often taking up to 8 to 10 weeks, a hungry agent hoping for the quick sale, simply won’t get a good result because the market is flat. Buyers are tough and only the very best agents are getting good results.

So vendors, you must be more critical in your selection of your preferred agent and how they will work to market your property to achieve the best result. And no, it’s not just who values the property at the highest price!

Here are a few good questions for your agent, remembering that they must be equipped and focussed to achieve a great price for your property or buyers will run all over them.

  • Tell me who are the best buyers for my property and your strategy for achieving the highest price? NB: you are looking for smart thinking and not just a scatter gun approach
  • Give me the contact details of your last 5 sales this year? NB: call the vendors and ask them tough questions about how the agent performed in this market.
  • How will you introduce more quality buyers (other than those responding to the advertising) to compete for my property? NB: you are looking for superior database strategies.
  • What are the comparable property sales that you will use for the property and how will you use them? NB: do you have land value sales to drive the price up or sales of new properties to command a premium. And give me an example of the sales document you will give to potential buyers. NB: It is not just a list of properties, does it contain comments on every sale to focus buyers.
  • Give me examples of your written documents sent to quality buyers to get them over the line. NB: you are looking for personalized sales pitches demonstrating an ability to target the property to meet the needs of the buyer etc
  • Evidence of a successful track record this year. NB: these are tough times and you should analyze what the property sold for and the initial asking price.

I accept the market is tougher but every vendor can achieve a good price for their property if the property is marketed in the correct price range, with the perfect campaign and selling and negotiation strategies.

Mark and I are continuing to achieve above expected results on a weekly basis but rather than take our word for it I might leave the last word to a few of our most recent clients:

6 Illawarra Street – “After failed results with two other agencies, and in a tougher market, Richard and Mark rejected low market offers until they delivered the ideal buyer at a “real price”. Tough work, well done.” D.Z.

10 Edwards Bay Road – “To get motivated buyers to act quickly, took well practiced skill and the way you handled the final negotiations meant that we achieved a speedy sale at a price we didn’t dare hope for.” S.N.

49 Myahgah Road – “What impressed us most, was that Richard told us before we launched, who the best buyers were and created a strategy to achieve the best result with these buyers in mind. He leaves nothing to chance and we knew that when the top buyers come along, Richard presents the perfect presentation and closes the sale.” M.P.

31 Avenue Road – “Richard and his excellent team with Mark and Gillian delivered on every level. He accepted 100% responsibility and delivered, which is increasingly rare these days.” K.M.

22 Mandolong Road – “Our home wasn’t the easiest place in comparatively difficult times to sell. It required an experienced approach which you were able to bring. We truly appreciated this.” A.H.

17 Morella Road – “I interviewed several real estate agents and found that most had a similar approach to selling, except one. Due to the incredible persistence of the R&W team we succeeded and achieved a great result.” J.A.

So vendors, after you have sold for a great price, you join the cashed up buyers looking to buy well. We look forward to seeing you out there.

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