The importance of getting your price positioning right
As I sat in the garden on a glorious Sunday morning watching my children play, I decided to prepare my diary for the following day and check my email.
One email stood out. The subject: PLEASE HELP ME!!!
Curiously, I ignored the other emails and opened it that instant. It began, “I’ve had my bungalow on the market for nearly a year without any success and during that time you’ve written to me several times highlighting your many successes”.
As I continued, the tone of the email was one of despair and frustration in equal measure. It included a link to the property on rightmove. I was intrigued.
Having researched the property online I felt compelled to pick up the phone and speak to the sellers, who were clearly very distressed. We arranged a meeting in my office for the following week.
That meeting was saddening. They had a received little communication, poor levels of viewings and very little in the way of service. They were distraught. They had begun marketing the property at £270,000 and had reduced it to £240,000. They were about to reduce it by another £10,000 when we met.
We had coffee and we talked about their experiences thus far. They talked, I listened, offering guidance where appropriate.
Now I was fascinated and immediately decided I had to see this bungalow for myself. It required some updating but was well positioned, central to the plot, in a stunning village location.
When we arrived, the grass was beginning to get a little long and there were few odd jobs that I was able to point out needed “finishing off”, before going to market again. I emphasised the importance of launching a property to the market correctly. Explaining that you go to market in competition, rarely in isolation!
I returned a few days later. Those little odd jobs had been done and the grass was freshly cut. We prepared the photography, floor plan and brochure. Then we discussed price and the need to create an immediate impact on the market.
I suggested Offers In Excess Of £200,000. My clients were aghast, but I took time to explain the need to create a ‘feeding frenzy’ of buyers to stand any chance of multiple offers which would allow the market to determine the property’s true value. They agreed.
We achieved 17 viewings on launch day, dealt with multiple offers and ended up agreeing the sale more than 10% higher than the ‘guide price’.
Our sellers couldn’t contain their excitement. They now recognise the importance of creating competition and ‘price positioning’ within the market place. Do you?