The principles of great marketing…
There are enough buyers out there in the market to sell every home. The question is, “How do we get them to see your home?”
The hottest buyers in the market place are generally those that have been around for a while looking for the right home. They are usually sick of looking and just want to secure a home. They usually have finances organized, are in a cash position and are very knowledgeable on values as they know everything that is on the market currently and they have seen almost everything that has been sold in recent months. These buyers are hot to trot and are all looking for THE NEW LISTING! Therefore when a new listing comes on the market, provided it is being marketed well, tends to attract the hottest buyers in the market place for that particular kind of property. It is during these first few weeks you have the best opportunity of not only securing a quality buyer, but having competing interest from potential buyers. This is your greatest chance of achieving a premium price through competition.
The other reason why these first couple of weeks are so important, is because you generally get better quality offers when the home has been on the market for a shorter period of time. The reason for this is when a buyers first sees a property, they will usually ask two questions. “How mush is it?” and “How long has it been on the market for?”. The longer the property has been on the market, the more a buyer will question why it hasn’t sold and start doubting the quality of the property or the legitimacy of the price. This leads to increased caution, scepticism and generally a lower offer.
A buyer will negotiate very differently when they know they are in competition, as opposed to knowing they are the only buyer currently interested in the property.
Because of this, the two conditions needed to exist, in order to have the best chance of achieving a premium price is:
1) Competing interest plus:
2) A short time on the market
The only way to do this is to try to get as many potential buyers to see the property as possible in the first 3-4 weeks on the market. This is not to say that a property that has been on the market for 6 months won’t get a great price but it is definitely easier to secure that dream price when the competition is high earlier in the campaign.
More often than not the best price that can be negotiated out of a well-executed marketing campaign, provided there has been genuine interest, is about what that home is worth.
It is rare, that a home that has been well marketed through a good agent, that has received the attention of genuine and interested buyers and has not sold for the best price that any of those buyers were prepared to pay, generally sells for much more.
Many sellers try to stay on the market for a longer period of time after marketing their property, to find a buyer who will pay more money for their home, but as a general rule this tends not to happen. Again, there is always an exception to the rule but more often than not the best price is the one that is achieved during a successful marketing period.
Every property has positives and negatives and the time it takes to sell a home is directly related to the balance of these positive and negative characteristics.
Example: A home that has a lot of characteristics that buyers generally like and few of the characteristics that buyers generally dislike, may only require a few qualified inspections in order to affect a sale. A home that has the opposite, that is a lot of characteristics that buyers generally dislike and only a few characteristics that buyers generally like, may require 50 or more qualified inspections in order to affect a sale.
Every property has a certain numbers game that needs to be played to find the right buyer and a more appealing property will require fewer qualified inspections in order to sell.
The next question is, “Where do buyers come from?” It is a common myth that buyers go to real estate agencies looking for a home to buy. The reality is that most buyers, even the hottest ones, are too busy to chase agents or run around looking for real estate agencies to enquire about homes for sale. Instead they will look at various media publications where properties are advertised for sale (like the internet and newspapers) and then make an enquiry to the agent who is handling the sale for more information. General enquiries (that is, non-property specific buyer enquiries) into a real estate office account for an almost negligible percentage of overall buyer enquiry, therefore if you want to get your property onto the shopping list of people who are buying, you need to have your property where all the buyers can see it. Your agent should be able to tell you where the best place is to advertise and what is an appropriate level of marketing for you home.
If you are thinking of selling your home or would just like an idea as to what it may be worth, contact us now for a free no pressure appraisal. We can help with all of your real estate needs.