As agents, you can take a beating for your estimate on a property price. If it isn't as much as the vendor wants you can be in jeopardy and if you over estimate its worth you can be in a very awkward position come auction day. Today we have outlined three ways you can accurately guide your vendors as to what their property is really worth.
1. Use data to your advantage, and highlight extrapolated data:
One of the best tools you have as an agent is data. This can show relative prices for neighbouring properties, as well as other things that go in to making a house worth what it is. As an agent you need to explain this data to consumers in a relative sense to prevent consumers misinterpreting it. For example, if a neighbouring property sold for a figure and your vendor thinks they can get this, draw on the relative size comparison, covenants and ensure like is being compared for like.
2. Create interest and highlight the property as best as you can.
Part of what you need to show the true value of a property is market interest. If you have more than one buyer in the market you will get market value as the two will outbid each other, with one bailing out at a point they don't think the house is worth anymore. This sets the market price. However to do this you need two + bidders. In order to do this, ensure the home is staged with good furniture, is well painted and well presented. Also get some paper and jot down three unique and key points to this property. Use these unique selling points as your pitch.
3. Go on facts, not emotion.
One of the biggest reasons people don't understand what a property is worth is because they attach emotion. They believe the weekends they scarified in painting the exterior is worth much more than if they outsourced it. It's essential you explain everything as 'matter of fact' You must explain to consumers that if this cost was outsourced, how much it would cost and simplify it. This will ensure that the property is sold for its offerings and potential, not for the memories that were made in there. If you try to get a price for the memories you may never sell!
View the featured property here.