Daily Archives: July 5, 2010

FOR SALE or ON SALE!

July 5th, 2010

Real Estate things that make you go Hmmm PART I

1. The FOR SALE sign out front has a price on it.

Why?

As Real Estate agents, we are marketers of a property, not a corner store.

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Ultimately, it’s up to the seller if the property sells, our task is to wisely, timely, speedily, accurately and for value let as many other agents / people / potential buyers know that a certain property is “on the market.”

To my way if thinking this (ie; price on the sign) just sends contradictory messages about what value a Real Estate Agent is to a property seller.

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In many cases this just helps to reinforces the idea that Private Sellers have “just stick a sign out the front with a price on it.” (have you ever noticed how many Private Sellers signs have the price on them?)

The downside of this method is no different than that other one that property buyers are always on the “lookout” for. And that is, the property with 2 or 3 or 4 different companies For Sale signs out front.

For that “scouting” buyer, nothing signals desperate seller more than this. It just yells out that the seller is a “too motivated” seller.

In my experience this is not something that every seller wants, or in fact should, impart to potential buyers.

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From  any associated experience I have had with these types of sales, 95% of the time all this “marketing?” method does is encourage the “ooh they’re desperate, let’s make a low offer?” type of buyers.

If that’s what the seller wants, then fine.

I suspect as part of the Kiwi psyche, that in recent times this has been accelerated by the “living on the edge month to month” method many over-extended folk have found themselves in.

In denial of things getting any worse, they have not placed the property on the market early enough.

When things do take a turn for the downside, some small amount of panic sets in (they “don’t need to sell in a hurry, though”) and they want to speed up the whole “home selling” process.

It’s a double edged sword.

Typically these were the buyers who, when they purchased the property, did so with a 95-100% mortgage from the bank. Today, those 0.25% increases really do make a difference to the monthly cost of living. Now that these sellers are sending out the “desperate / must sell now” signals, they are doing their best to encourage “bottom feeders” who trawl the real estate market in each town looking out for a “steal.” Let me tell you, this is not the way to get a premium for your property.

Look at it another way……..

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Example – Mr & Mrs Smith do not have a computer, and one day want to retire to Nelson…..but they “aren’t ready for a retirement home yet”….so while over from Blenheim visiting their relatives in Nelson, they spot a sign outside a property that had spotted & liked “from the street” last trip.

Does the fact that the properties For Sale sign out front have a price figure on it matter to them?

I suggest “No.” But it now gives them on the buyer side some extra ammunition when they sense seller desperation by seeing the price on that sign. I also wonder whether some agents are using it as a last ditch method in the last week or two before their listings hit 90 days.

All I’m asking is, next time you are thinking of placing a $ figure on your For Sale sign, just consider the all the positive / negative ramifications cautiously before you do so.

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