Real estate agents are often asked why certain houses stay on the market for months and years while others, seemingly comparable, are sold within weeks.

Many inexperienced vendors overprice their properties out of a mistaken belief that this is the way to achieve the best price. Far from encouraging purchasers to make offers, overpricing actually discourages them. For a start, an overpriced property actually attracts the wrong market group.

If purchasers are used to seeing other properties that offer more for the money, they will give negative feedback. Not because the property is bad per se, but because of the…

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Over the past decade, real estate agents have replaced expensive newspaper ads with expensive Internet ads.

Real estate agents love a motivated vendor. One of the easiest ways to get the home sellers motivated is to have them invest in a multitude of products before the campaign begins.

However, any marketing expense during your sales campaign must be ultimately linked to a higher price.

Heads we win, tails you lose.

Agents now strongly recommend expensive Internet ads to vendors, but vendors are asked to foot the bill. For agents, it is easy to be passionate about an expensive product that…

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Why failing to sell at auction is bad for your wealth.

As a property seller, it is extremely disappointing when the price interest in your home falls short of your expectations. Failing to achieve your price target will happen in one of two ways – private failure or public failure. Failing privately means the agent submits the current buyer’s price interest/offers on your property to you and you decline the offers. You then decide to continue looking for another buyer or you withdraw from the market. Either way, your business remains your business.

When this happens at a public auction,…

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Contrary to what you may think, the toughest offer to accept is not the offer below your desired price. The hardest offer to accept (albeit begrudgingly) is the offer that is less than what you have previously rejected.

In the past 5 years, selling has been relatively easy. Pick a number and wait for buyers to meet and exceed it.

Now that the market has moved into a more balanced phase, it is frighteningly easy to undersell.

Scenario:
Vendors Bob and Sue receive a solid, but not spectacular, offer from a buyer early in their campaign. The offer would be acceptable…

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