Get your listings priced right and they will still move in this market place. This blog follows on from my previous blog on “Strategies in a Challenging Market” in which I commented that education is crucial to helping our buyers & sellers understand the current market place and where they fit within it.
Part of the education process is to know exactly where your property sits in relation to other (comparable) properties currently for sale. If you are higher than everything else, then obviously your property will help sell the others around you because they will appear to be better value for money than yours. Equally, if your property is priced under the competition, they will make yours seem like better value for money and because of this you are more likely to achieve a sale in a shorter time frame.
For properties that are harder to sell because they are on a main road, next to a railway, transmission poles or wires, or even close to an undesirable property, price becomes even more important. Ask the owners to remember back when they purchased the property and whether they deemed it to be cheaper than other properties around that they had seen at the time, and the answer is often yes. It must also be true then that when they sell the property that the same value must be perceived for a purchaser to forgo the undesirable features of the property and to step forward and buy it.
It is also important that in a declining market salespeople are aware when the median sales price in an area falls and then be the first to adjust their owners’ prices. Often the first cab off the rank will get the best fare. In other words if the median sale price has fallen and you discuss this with your owners and get the necessary price adjustment, and do so before other salespeople and owners become aware of the fall in median price, you will often catch one of the few buyers in the market place. The main reason for this is that every purchaser wants to feel as though they have achieved a value for money deal (and here’s the crunch) – in their perception. They also do not want anyone else to get it.
So even in a declining market good sales volumes and prices are achievable if you keep yourself up to date with the current market trends and be professional enough to make your sellers aware of these trends and give them the option of what to do. If they choose not to listen to sound professional advice, don’t be afraid to let them go. It is better to be working with realistic, educated, and motivated sellers in this market as they are the ones that will probably achieve a sale.
Finally, you must remember that the most important stage of any marketing campaign is the first 2-3 weeks. this is the period when the majority of buyers looking in that area or price range will see the property for sale and make a decision whether to view it or not. It is therefore crucial that the price is right in those early stages. In a falling market it is not acceptable to have the attitude that “we can start high and come down later” because you will forever be chasing the market down. The longer the property is not sold on a falling market, generally the lower it will sell for. So it goes without saying that getting our sellers’ properties sold quickly is certainly important, and correct pricing is essential to achieve that.
I don’t think that what I am saying is new, but I think it helps just to refocus sometimes and realise what is happening and what is important to your continued success in these tough times.