The biggest concern a property seller has is that they sell for less than they should. The very thought of underpricing is the stuff nightmares are made of!
And so, in order to prevent this, many sellers price too high. We discussed the negative impact of overpricing last week – but it generally means that the wrong buyers are attracted to the property – buyers that expect more for their money. They see it’s overpriced, and they vote with their feet by moving on and buying elsewhere.
So how do you avoid overpricing, and at the same time ensure you don’t sell for less than you should?
It’s simple: you remove Price from the equation. It’s called marketing without a price.
When you market “with a price” you attract buyers to your property based on the price. When you market “without a price” you attract buyers to the property based on what the property offers. Price is not in the picture.
Whilst this doesn’t attract bargain hunters, it does attract people looking for a specific type of property. So how will a buyer know what to offer?
Buyers aren’t stupid. They shop around and they know what properties are worth. They will weigh up the benefits of the property and, in comparison to other properties that are on the market or that have sold, they will determine what it’s worth.
The benefit of marketing without a price is that the buyer will decide what to offer. When they are in competition with other buyers for a property they will be motivated to make their best offer – which may even be more than you expect to get.
Typical examples of marketing “without a price” are the Auction and For Sale by Tender methods. In both cases buyers are attracted to the property for what it offers. They will make an offer based on what they think it’s worth. However, when they compete with other buyers for the property they will make their best offer, not their lowest offer.
There are new and innovative ways to market without a price that maintain the desirability of a property, whilst attracting massive buyer interest. Modern marketing strategies ensure a property seller enjoys outstanding buyer enquiry and sells for the most the market will pay.
These “no price” marketing strategies have been perfected in other parts of the world, such as Australia and New Zealand – the home of Harcourts Real Estate. In both these markets it is very common, especially in a strengthening market such as the one we’re in, for a property to sell for much more than the sellers thought it would.
It makes a refreshing change for a seller to be surprised by how much their property sells for instead of how little it sells for. The modern estate agency has the ability and skills to offer a seller the very best in marketing strategies – either “with a price”, or “without a price”. Make sure you know what all your options are before deciding which one to use.
Principal of Harcourts Platinum, and Director of Harcourts South Africa
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