In light of the what the data stacking (refer previous post) up is showing, I just thought it might be a convenient time to mention a couple points. Until REINZ releases the full & final official figures in a few weeks we won’t know the full picture.
One thing I can say, the strategy the media has been commenting on about in recent days, that of placing a higher price on a property to make allowances for a lower offer, will not work in today’s market.
As a seller, often times the rose coloured glasses make one forget what being a buyer is like.
A buyer will typically gives themselves a price range, lets say $300,000 – $325,000 for example.
Now if they don’t find their dream home in a month or so, all is not lost, they will be at least one further important step closer to their goal. They will have become expert at recognizing value in the $300,000 – $325,000 price range segment.
A seller then decides to place his home on the market at $339,000 by saying “I can always take a lower offer.” You can see where this is going I’m sure…..
Those above example buyers who have seen everything on the market at say, $290,000 – $340,000 will quickly make judgement about the new listings value after inspection, and based on this, react positively or negatively. Importantly in todays market those most interested in the new listings, are the cash buyers who have done an immense amount of research.
Immense amount of research, what do you mean?
For many baby boomers or like me, those chronologically challenged, unless you are used to utilizing a PC or the web to do research, you’ll be out of touch with how todays younger generations approach buying a home.
We all know how much information is available on the web, and it is this facility that most younger generations use to conduct their forward planning. By the time they show up at an open home todays generation of younger buyers will already know twice the amount of info you would have when you were looking to buy your first home in 1975 or 1985. In fact half is probably underestimating, more likely triple or quadruple the info.
Yet, its these cash buyers who will just walk away, and many time not even go to the trouble of making an offer. You only get one chance to make that first impression, don’t blow it.
The way to get the best price possible is to get as many people interested in the property when it is newly listed.
Contrary to popular belief, when the Property Press or your local Real Estate book or lift-out comes out each week, buyers aren’t scanning it to look at places to visit.
I believe they are actually scanning it to cross some off the list. Don’t make it easy for them.
Remember♣ what Kevin Costner said in Field of Dreams
Price it accurately and they will come…. I think thats what he said…or something like that.
♣actually I do know what he said because I was involved with the sales of this movie in Australia in the late 1980s for Warner Bros…….