Welcome to the first of my blogs regarding the property market. The good the bad and the ugly will be discussed as I go through my journey in the property market on a daily basis.
In case you don’t know me that well I have been at the coalface of Stratfords since 2001 and yes people, I must of started at 10! Actually I had work experience with David here when I was at school years before coming round to actually working here for real and running the sales department.
My topic this week is one that most agents find frustrating and homeowners mislead or misinformed, The Overvaluing Of Properties. Agent gives high property price and owner is delighted for a week or so until no interest happens and the house stagnates!
I’m all for maximising the value of a property as that is my job when selling property for an owner, however I firstly have to use my knowledge and evidence to come to a conclusion of what the property is worth. There is always abit of ‘ Wiggle Room’ for negotiations with the buyer and I know homeowners sometimes think it is more than the evidence suggest, but this should be discussed and a plan sought to determine the correct value. A higher asking price sometimes doesn’t achieve the best end result. Here’s and example I’m currently dealing with:
3 bedroom house in need of some modernisation and has a value in the region of £210,000 to £220,000. Discussing with the owner the different types of buyers the property will attract will mean varying offers will come in depending on how much work they think or want to do. We decided that the more eyes on the property the better chance will get to find the right buyer. So we go with an open day set up and a lower Guide Price of £200,000. What this has achieved is exposure to more people being lower and being a ‘ Guide’ it allows negotiations to go in the direction we want, which is up! The other key thing here is the Open Day, it creates urgency and allows offers to come in close together so a decision can be made in a timely manner. The professional photo’s produced also highlight the good and also bad points of the property so buyers are aware of the reason for the lower guide price but also what the property offers in a good way. The Open Day is on the 1st July and after being launched 1 week earlier we sit on 12 viewings primed for Saturday and hopefully several offers coming in to deal with on Monday.
Doing something like this and not just going the traditional put it up high and let people knock you down method should reap rewards, as it’s almost a negative way to deal with property coming down from a price rather than aiming to achieve the most money.
Ultimately it’s something to look closely at when choosing a marketing price for your home and also an agent. Being able to discuss the reasons for trying higher but the realistic impacts of that and how you then approach a change in tactic will be key in getting the right result for your property and the best price and the best buyer. Trying a higher price in the market when there is little stock out there can come off for you but in a changing market that we are starting to see now with more stock filtering through slowly on, it could be wise to be more realistic and a harder on negotiations than less people seeing it at the higher price.
I hope I it has given you some food for thought and do feel free to discuss anything with me regarding property and I’ll be more than happy to assist where I can. Until next time when I can hopefully update with results of the Open Day ( Has the plan worked!?? )