It’s every home seller’s dream to sell their property fast and for the best possible price.
But how can this outcome be achieved?
There are several things you can do to speed up the sale of your home and get the best price. In my thirty-eight years’ experience in selling real estate I have found the following four are the most important considerations that can influence the outcome when selling. If you get these four right, not only will you achieve the best results, but will also save you from unnecessary stress and financial loss from both underselling and from a costly advertising campaign.
The four most important criteria when selling are:
The right agent
The right sales process
The right price
The right presentation
The right agent
In their pursuit to find the best agent, somewhere along the way, some sellers get derailed and instead start looking for the cheapest agent. The best agent and the best deal are two different things. The worst criteria you can use to select an agent is to base your decision on the price they give you. Many home sellers inadvertently select their agent on price and fees. Beware of agents who try to dazzle you with empty promises of an unrealistic price and an expensive marketing campaign1.
Home Sellers need an agent they can trust, but also an agent who has good people skills in order to negotiate the best possible price from interested buyers. You should test the agent before you hire them. Also find out what their customers say about them by checking out their customer reviews on Google.
The right agent will get you the best possible price with the least amount of stress and risk. It is difficult to have a risk free and stress-free campaign if your agent has talked you into a needlessly expensive advertising campaign – promising above market price.
The agent who can achieve the best price for your home can only achieve this if they are using a system of selling that permits them to do so.
The right sales process
Whether you believe in the public auction system or not, if you want to sell for the highest price the buyer can pay2, public auction is the wrong selling process for most homes in any market. There is a lot of misreporting with auction results in the general media. A good example of this is the true auction clearance rate is always lower than what is reported. Below is a typical media report showing a 60% clearance rate. The true clearance rate is 34%. See if you can spot the discrepancy!
The general media want you to believe that public auction is the most common way to sell – it’s in their best interest to promote this misinformation because they are making millions of dollars from expensive advertising campaigns that generally accompany public auctions. This kind of reporting is what these days is known as fake news. Don’t fall victim to this.
The truth is auction is the least preferred method of sale.
Close to 80% of all property sales in the marketplace are not by auction, they are sold by private sale.
A lot is happening off-market too – with some great prices being achieved.
To increase your chances of achieving the best possible price for your home, choose an agent who knows how to use The Smart Sale3 process of selling. A smart sale is a private sale with some additional variations that benefit you the seller and not the agent, which is why not many agents will recommend this process of selling to you. The smart sale is the only way you can be guaranteed of selling for the highest price the buyer can pay. It’s also fast and carries no risk of any financial loss.
Understand that getting the best price for your home is clearly affected by your choice of agent and the system they use, not the price they quote you. Choose your agent wisely and don’t be influenced by the price they entice you with when they are trying to win your business. Only the best agents using the smart sale process have the skill and knowledge to negotiate the highest possible price from each buyer.
Agents know the price range your home will most likely sell for, but many will avoid disclosing the true price to you for fear of not getting the listing. They will either give you an inflated price or encourage you to go to auction by saying things like ‘you never know how high the price could go on the day, with buyers competing for your property, it could go as high as $X+’.
Even when they don’t tell you, agents still know the market price for your home within a 10% range.
The right price
Good agents know that to attract the right buyers they must quote the right market price – not to be mistaken for the low underquoted bait price some agents use. The right agent will quote the price you want not a misleading ‘bait’ price. The right market price is the price that other comparable properties are selling for in your area. Today’s buyers have easy access to all types of information online and are well educated about comparable sales in the area. If you price your home fairly and honestly you could attract multiple offers and the smart sale agent will know how to drive your price even higher. Multiple offers, using a smart sale and not a public auction, will guarantee you the highest price each buyer is prepared to pay.
A word of caution about offers you may get early in the campaign and be inclined to reject. Many sellers have discovered from bitter experience that the buyers they rejected when their home was first placed for sale were the buyers prepared to pay the highest price.
The only problem with buyers who make good offers early in the marketing campaign is their offers may not seem as good when compared with the initial asking price – which is often a little higher than the true market price. These early offers however are often from the best qualified buyers in the marketplace and you should not dismiss them so quickly, instead you should consider them wisely. To help you make the right decision you should discuss these offers in consultation with your trusted agent.
Please understand that the longer your property stays on the market, the number of buyers for it usually gets lower, not higher, and your price will often get lower too.
The right presentation
Make it easy for buyers to buy.
You rarely need to spend thousands of dollars to make your home attractive. Buying a home is emotional. Buyers say, “We loved that home and that’s why we bought it.” So, make sure you present your property at its finest so buyers will fall in love with it.
The right appearance outside, followed by the right feel inside, give you the best chance to sell fast and for the highest price. If you are not sure about your presentation you should speak to your agent about how to best stage your home for excellent results.
So here it is –
A great presentation, the right agent, the right sales process and the right price will greatly increase your chances of successfully selling fast and for the highest possible price with the least amount of stress.
If you get one of these four critical decisions wrong, you will likely incur financial losses and unnecessary stress.
- The purpose of expensive advertising and open inspections is not to ‘search for buyers’ – they are already in the area and should be on any good agent’s database of qualified buyers who are ready to buy – it’s to ‘condition’ you down on your price expectations by getting you to commit financially and to create lots of physical activity (with the wrong buyers) using bait pricing.
The hallmark of an efficient agent is one who can find the best buyer willing to pay the best price in the shortest time and with the least cost to you.
The most common mistake many sellers make when selling is they discover the true market value of their home only after they are talked into signing up for an expensive advertising campaign. If the price they want is not reached during the marketing campaign, the seller is usually locked in with the agent for a lengthy period. Most people eventually get tired and worn out and sell for less than they had originally hoped to achieve, while some are able to wait it out until the agent’s authority expires but still have to pay them thousands of dollars for a failed advertising campaign that did not result in a sale.
- At a public auction you can never know how much more the winning bidder could have paid.
When an auction gets knocked down and sells to the final bidder above reserve, that price is unlikely to be the highest price the buyer was prepared to pay. It is simply one incremental bid above what the second highest bidder, the losing bidder, was prepared to pay.
You will never really know how much more the winning bidder was prepared to pay when you sell by public auction.
I have witnessed hundreds of auctions and have helped many buyers buy at auction where they paid much less than they were prepared to pay. They often never paid the highest price they could have paid because the auction process only pushed them to the limit of the losing bidder. All they had to do to defeat the under-bidder is make one more bid and the property gets knocked down to them without having to pay the highest price they could have paid. This is a serious flaw in the auction system agents will never tell you about.
If you were prepared to accept say $950,000 for your property and it sold for $992,500, would you consider that sale a success? On the surface, most people would call that a great success.
But how would you feel if you found out later the buyer who bought your property for $992,500 came to the auction ready and prepared to pay $1,025,000, which was their approved limit, but didn’t have to pay it because the losing bidder had reached their limit and stopped bidding?
Would you still consider the sale a success?
Buyer’s agents are well aware that some of the greatest value in real estate can be found at auctions. This is what Patrick Bright, a buyer’s agent and author of The Insider’s Guide to Saving Thousands at Auction had to say about the selling method:
‘I attend many auctions and bid for properties on behalf of my clients. At the majority of the auctions where we were successful, we had ‘money left on the table’ — that is, we spent less than our authorised limits.’
As happens so often, the buyer who secured the property at the auction left with the seller’s money still in their pocket.
With the smart sale you get each buyer to pay their maximum. When our experienced salespeople sit with the buyer to take their offer, they negotiate in private the highest price the buyers are willing to pay for the property. All offers are placed in a sealed envelope ans kept confidential until they are presented to the vendor.
- The Smart Sale is an internationally acclaimed sales process achieving amazing results with the least amount of stress. All offers are negotiated privately with each buyer, sealed and kept confidential until they are opened by the vendor in the presence of their agent.
Benefits of the Smart Sale:
No costs – there is no risk of losing money
Private, secure and confidential
The entire sales team works on finding the best buyer for your home – it’s not just limited to the listing agent and their assistant
Private bidding removes the risk of underselling, as often happens with a public auction – instead each buyer offers their maximum price, the highest price they can pay. If they don’t, they risk losing the property to buyer who offers more
You as the vendor, are in control – you can accept, reject or negotiate any offer
The Smart Sale is an efficient and hassle-free professional sales process that achieves the highest possible price for your property with no hidden costs.
Our sellers love the Smart Sale process and so do all genuine buyers (see our reviews here).