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04 Different Marketing Price Options When Selling Your Property

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An ‘asking price’ is probably the most commonly used strategy when it comes to marketing a property for sale but it is only 1 of many options available when it comes to setting a ‘marketing price’.

In my opinion, an asking price is rarely the best option but to understand why you have to clearly understand how buyers are searching for property these days.

In this guide, I will talk you through 4 different options with examples of where and how they can work well.

Published in: Real Estate, Business
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04 Different Marketing Price Options When Selling Your Property

  1. 1. 4 different marketing price options when selling your property
  2. 2. pERRY POWER 4 different options when it comes to setting a marketing price for your property... When it comes to selling a property, setting the right “marketing price” (not to be confused with the “asking price”), is crucial. There is a very fine line between the right and wrong price. One will help your property to attract lots of attention, resulting in a large number of viewings. The other is likely to lead to deafening silence, so it’s very important to get it right from the start. If you’ve marketed it at the wrong price and your house begins to stagnate on the market, you will probably need to reduce the price to attract more viewings, which can obviously be damaging to the property’s saleability and ultimately, the price you achieve. Your marketing price is one of the crucial 3 Ps – Price, Presentation and Promotion and if set correctly, will ensure your property sells for the highest price possible - and in the shortest time possible. When marketing a property for sale, you should be conscious of two valuations - the figure you expect to achieve and the figure you choose as your marketing price. These two figures can be, and usually are, different. Many people assume that when selling a property, you should agree an ‘asking price’ with the estate agent. Usually, the asking price is set at a few thousand pounds more than you actually expect to achieve. In my opinion, this is not the best approach. 02 / Perry Power / 4 different marketing price options when selling your property “Happily, I’m here to offer impartial advice, suggestions and tips”
  3. 3. pERRY POWER There are many ways to set a price for a property on the market: ● An ● A asking price guide price ● No price at all ● A fixed price ● By tender ● By sealed bids ● An “offers in excess of” price Which approach you should take depends very much on your individual property at the time it is launched onto the market so do not always assume that advertising an asking price is the best way to market your property. The three most common marketing strategies are listed below, along with their pros and cons. The fourth and final one, “Price on Application” can also be used in certain circumstances. ● An ● A asking price guide price ● No price at all – “Price on Application” ● An “offers in excess of” price 03 / Perry Power / 4 different marketing price options when selling your property
  4. 4. pERRY POWER An Asking Price The way buyers search for a property has changed immeasurably over recent years, which has made a significant impact on the way in which properties are marketed successfully. An asking price is obviously the traditional method of marketing and, because of its transparency, is still used by many sellers and estate agents. In my experience however, an asking price is simply that. It invites potential buyers to discuss whether they think the property is worth that amount of money – a discussion which usually ends in the inevitable “no”, and the buyer offers a lower price. With most property searches now being carried out online, it is difficult to encourage a potential buyer to view a property if it is a little out of their price range. In the past, an estate agent would usually convince them to view the house anyway, but with all information available online, they often do not have the opportunity to speak to the potential buyer and use their skills in this way. Savvy estate agents understand this and so should consider it when marketing the property. If you choose to use an asking price, make sure it is set very close to the actual value of the property. Buyers aren’t fools and if you set an asking price 10-15% above the value, you will struggle to secure viewings. 04 / Perry Power / 4 different marketing price options when selling your property
  5. 5. pERRY POWER A guide price There are two types of guide price: 1. A figure which is close to the value of the property, ie “guide price £500,000” 2. A price bracket i.e. “£480,000 - £520,000”. Even if you use a price bracket, try and narrow it down as much as possible so that you receive sensible offers and ensure it is close to the true value of the property. Both methods have their benefits but I, and most buyers I speak to, tend not to like the price bracket as it’s simply too vague and encourages potential buyers to offer the lowest figure. By adding the words “guide price” rather than a price bracket, it gives the impression that sellers will accept offers either above or below this range. 05 / Perry Power / 4 different marketing price options when selling your property
  6. 6. pERRY POWER An offers in excess of price This approach is useful for unique properties where the price of the property needs to visually compete with other properties in order to attract viewings and encourage potential buyers to fully appreciate what the property has to offer. Let’s say your house is much larger than most other properties in your area. These other properties have an average marketing price of £300,000 but your property is worth £310,000 because of the additional space. The “offers in excess of” approach is an excellent way to attract viewers who may otherwise have dismissed the property before viewing, due to its higher price. The “offers in excess of” price is also useful in discouraging low offers. If you are willing to sell your £510,000 house for £500,000 for a quick sale (because the stamp duty rate increases over £500,000), then you might adopt the phrase “offers in excess of £500,000”, to ensure that you show up in online property search engine results up to and including £500,000, whilst making it clear from the start that you won’t accept lower offers. This puts your estate agent in a strong negotiating position. 06 / Perry Power / 4 different marketing price options when selling your property
  7. 7. pERRY POWER No price at all (aka “Price on Application”) This method is rarely used but can sometimes be a good approach for properties where the level of demand is expected to be less than usual, perhaps due to a very high price. Its main purpose is to entice interested parties into contacting the estate agent to ask the price, which allows the agent to begin a conversation with them and encourage them to view the property. Whatever you do... Ensure that your marketing price is a round figure, i.e. £400,000 and not £399,950, so that your property will appear in more online search results. For example, if you market at £400,000, your property will appear both in searches up to a maximum of £400,000 and also with a minimum price of £400,000. At £399,950, your property will only appear in the former, potentially losing countless numbers of property searchers. 07 / Perry Power / 4 different marketing price options when selling your property
  8. 8. pERRY POWER Remember Remember, every property (as long as it is marketed correctly and your estate agent does their job correctly) will sell for its market value. An example I give to my clients is to imagine you have a £500,000 house and market at offers in excess of £400,000. This may seem to be quite a low figure, but it is likely to create such demand that the price will be pushed up to around £500,000, similar to an auction. On the other hand, if you have a house with a value of £500,000, and market it at £600,000, you will receive little interest and any viewers will quickly decide that it doesn’t appear to offer good value, compared to other £600,000 houses on the market. 08 / Perry Power / 4 different marketing price options when selling your property
  9. 9. and Finally... Did you know: On average, 60% of property owners end up having to change estate agents before eventually selling their property with the average property selling for 21% below the original asking price. I have helped hundreds of home owners successfully navigate the challenges of selling. With over 11 years experience in the industry, I am now using that experience to help you avoid the common pitfalls via eGuides, my website forum, Podcasts and Webinars. It’s all FREE! need more help? No problem, get in touch and I would be happy to help. Speak soon perrypower.co.uk @power_perry facebook.com/perrypowerspecialist soundcloud.com/perry-power youtube.com/user/propertyadvice uk.linkedin.com/in/perrypower perry@perrypower.co.uk 09 / Perry Power / 4 different marketing price options when selling your property

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