30
4
+4%
A couple of 'considerations…'
As we’d sold number 1, were already aware of the maintenance upkeep plan that was due to start on the block (which could potentially put buyers off due to living through the building works) – during the sale the scaffolding went up – obviously this was disclosed to buyers before they offered rather than doing what the typical estate agent does by not disclosing possible perceived negatives and throw the deal at the wall and hope it sticks.
Sod’s law there was also a leak from the flat above (which happened during our viewing week) that we had to deal with. Literally Niagara Falls into one of the bedrooms – we weren’t the managing agents but were there to try and help the tenants in any way we could, and we maintained a great relationship with them, and also dealt with the aftermath to the eventual buyers satisfaction.
Our mantra...
We listed this at £185k, as always focussing on the quality of the listing by doing a full walkthrough of the property via video & photography. Our ethos, mantra, way of working, rule of thumb, ‘mode of operation’… whatever you want to call it – shows everything! Allow people to make an informed decision to view from the get-go.
Avoiding imagery that ‘doesn’t show off a property’s best features’ AND/OR not disclosing full information just attracts the wrong people… we want to put the right people off – the balance of those that still choose to view, are then more likely to offer despite any negatives.
Once we’ve attracted the right people based on full disclosure, then, and only then, can we think about building competitive environments.
Let’s talk pricing & money, shall we?
We listed this at £185k. Why? Well… We’d previously sold another flat in this block so knew it well. It was furnished nicely and also had a south facing garden – this sold for £215k (£10k over guide price we might add…)
So, we looked at comparables, taking previous experience into account and arrived at this figure.
But, one thing to note here is that we never ‘value’ a property…. At least not in the conventional sense. Let me explain:
We always take important local information, and previous knowledge into account – however when we arrive at a listing price, we do this by pricing at a point we think we are guaranteed good interest (i.e. viewings) rather than listing at a price that reflects any kind of expectation of value.
A lot of agents will ask you what other agents have ‘valued it at’ or indeed what you, the vendor feel the property is worth, and then say ‘OH… well I think we could achieve more if you went with us… yada yada blah blah’ – they are pricing simply to win your business and ‘see what happens,’ instead of pricing with a strategy in mind that is designed to get you the best price.
Often a property that is overpriced will sit on the market for months with trickles of viewings here and there. Or if they do sell quickly, without the heat of competition you will often find yourself in a traditional negotiation (buyer low ball offers and then you negotiate from there). If you don’t sell quickly what’s next? Price reduction.
Anyway… that’s for another blog I reckon – all you need to know is we priced this at a GUIDE price of £185k and after 20 viewings and 4 offers we achieved £192,450 (4% over guide price.) :)
