Most people ask several agents to come and give them an idea of what their home will sell for. Sometimes they choose the agent who sets the highest potential price, and sometimes they go for one who appraised it as likely to sell for a lower figure. But whichever agent they choose, they are likely to want to set the asking price at the highest quoted figure. Unfortunately for them, home sellers almost always believe their properties are worth the highest amount quoted, and many less professional agents play to this in the hope of winning listings. But setting a too high asking price can work for them if they understand the 2-2-7 Rule of marketing.
Experienced Ray White agents know that sometimes home owners like to at least ‘try’ for a figure higher than they are really likely to achieve unless they find an emotional buyer in that short time. Perhaps they need to ‘prove’ that a price is unrealistic before they can move on. But they also know that if the property does not sell at this figure, strategic timing in reducing the asking price is crucial to keeping buyer interest and achieving the highest price in the long run. The 2-2-7 rule sums up the essence of this timing strategy.
Provided the property is both well-presented (clean and tidy including maintenance of any lawns and gardens) and well-marketed, the system for reducing the asking price works thus: After two ads and no calls or two Open for Inspections and no inspections or seven inspections and no offers it is time to reduce the asking price. For a reduction to be effective, (i.e for buyer to react positively), it must be a minimum of 5%.
How does a seller know if their property has been well-marketed? Good marketing does not mean spreading advertising money thinly across every advertising vehicle on offer. Check that your agent has done research of previous buyers to isolate the three or four main sources of enquiry for your local area. It is very important that the first few weeks of your marketing campaign is done correctly. Probably the best buyer for your property is an existing buyer who has been looking for a number of weeks, who is possibly a little frustrated and keen to buy. What we have to do is lift your property above the other properties where all the buyers will be aware that it is for sale.
We are the leading office in your area with the highest profile among both buyers and sellers and out investment property management services are the most comprehensive available. Ray White Maroochydore is dominant in sales volume and value but the most important measure of success is client satisfaction and personal recommendations.
Source: Local Property News | The website for buyers, sellers and investors