How much is a property worth?
Only as much as someone will pay for it, is the hard but true answer.
With today’s markets cooling after what can only be described as historically high prices, many vendors may still have high expectations for the price their property is likely to achieve.
With the market having been in favour of the sellers for so long, managing the expectations of your clients is a very real challenge for today’s agents. So, what can you do?
Ensure the property is ready for sale
This is the best advice for selling a property in any market but in a buyers’ market, with so many other properties for sale and the buyer holding the balance of power, having an impeccably presented property helps swing a little of the favour back towards the vendor.
A house that is in clear need of repair, even if they are only minor issues, will easily be overlooked or give buyers the idea that there is room for negotiation on the price.
Educate your clients
An informed buyer is something that you should aim for from day one.
Not only does this help prevent unrealistic price expectations but it helps the vendors understand a quality offer when it is presented to them.
Despite the price that your clients want to achieve in order to buy their ‘dream home’, helping them to understand what their current home is worth will be beneficial for all when the offers start coming in.
It’s important to present your clients with the facts about the neighbourhood and similar houses in nearby suburbs so that they have a full understanding of how buyers in the market will be viewing their home’s value.
Sharing data such as median suburb prices and presenting them with recent sales in the area will help further their knowledge of the market today.
For buyers who are more visual and have to ‘see it for themselves’, invite them to attend open houses in the area and keep them up to date with the sales results that the property achieved. This will go a long way towards helping them gain a realistic understanding of the value buyers are likely to see in their property.
Market the property correctly
There are many ways to market a property and it’s not always down to how much is spent.
In many cases it’s knowing the best place to spend the money that is likely to bring about the best value for the vendors and ultimately help them to gain more interest in the property to achieve a higher price.
In today’s online world, imagery is key to drawing buyers to an open home and gaining interest so be sure that quality images are a part of your marketing.
Buying property is often the highest priced investment that a person will undertake in their lifetime so using tools such as PropCalc, which provides buyers with a real weekly cost to own a property (not just a mortgage repayment), is likely to help them see the price set as more affordable and help you keep your vendors happy.
Be honest
Honestly is always the best approach.
The market will dictate to your vendors what their property is worth and giving them advice about this from day one of your interactions with them will help them to understand and value your opinion on the price that is set and the offers that they receive.
It’s important for your vendors to see their property as a buyer would and since this property has been their much-loved home for years, this can be difficult.
They’ll appreciate your honestly and the fact that you’ve told them the facts about the market and their property’s value when they can realistically understand the offers that are coming in and whether or not they should be seriously considered.
As they are likely to be in the buyers’ shoes in the very near future, they’re going to embark on that next journey fully informed.
