There are lots of things that affect your final selling price. Many, like the economic climate, are outside of your control and therefore not worth loosing sleep over.
However we’ve discovered those you can control – to ensure you get the highest price possible – fall into 7 categories.
1. Avoid fundamental mistakes and traps.
Some of the biggest financial (and emotional) losses to sellers – are due to making ‘fundamental mistakes’. They’re often what we call “hidden losses” – meaning you don’t even realise you’ve dropped thousands of dollars.
Unfortunately, most of the traps are laid by the traditional real estate industry. So our first role is to protect you from them. The best protection, is to avoid them in the first place. To do that, you need to be aware of them.
This is why we wrote the book – “The Common Sense Approach to Sell Real Estate”. To open your eyes.
2. Selecting an agent.
Like it or not, the agent you choose to represent you will have a big impact on not only your sale price, but more importantly your profit.
3. Strategy / Game Plan
This is your overall ‘approach’ to the market.
What is most important to you?… Are you definitely selling? Or will only sell IF… (you get x price, can secure another property, etc)?
Do you need a sale within a specific time frame? Or do you need a specific price on order to achieve your goal?
The answers to these questions are vitally important.
Your goals affect your strategy – which in turn determines your marketing, method of sale and ideal fee structure.
4. Pre Market Preparation
This is an area many sellers underestimate the importance of. It involves two parts:
- Presentation: Bottom line, the presentation of your property will affect your selling price. There are simple ways to add value to your property before it goes to market. Of course there are also improvements that will cost you more than they will return and are therefore not worth the effort or expense. The trick is to know the difference.
- Preparation: Removing any issues that may hold up your sale, give the buyer ammunition to negotiate a lower price, or even scuttle your sale altogether. You want to make it as easy as possible for the buyer to buy. The more obstacles you can remove – the better. For a more detailed discussion on this topic – download this free report… ‘One simple tip – that can increase your profit when selling your property’
5. On the Market.
Once you have your overall strategy in place and preparation complete – you are ready to launch to market. While on the market, the following will affect your end result:
- Method of sale (Set price, tender, deadline, auction? Etc)
- Smart Marketing (Attracting the best buyers in the most cost effective way).
- Inspections (By Appointment Only vs Open Homes).
- How buyers questions are answered.
- Market feedback / Strategy review
The whole reason for being ‘on the market’ in the first place, is to get to the point where one or more buyers want to actually buy your property. This leads into the most important phase…
According to real estate consumer advocate and author Neil Jenman…
“The biggest “COST” with most agents is not commission, it’s their INCOMPETENCE at not knowing how to negotiate – thereby “UNDERSELLING” homes!”
And frankly, we agree.
Every agent “says” they’ll negotiate you the “best price”. However we’ve found, that the typical real estate industry style of negotiating – actually helps the buyer get your property for less than they were prepared to pay – thus underselling your property.
We even wrote an article about it …How the traditional style of negotiating loses sellers money.
So we’ve spent years developing a unique style of negotiating. One that we believe – is far superior to the traditional approach and can add thousands of dollars to your pocket. But of course, we would say that. Unfortunately it can’t be 100% proven. Two or three separate agents cannot negotiate the same transaction with the same buyer at the same time – making it impossible to know who really is the best negotiator.
The only thing you can do, is look at the Key Performance Indicator of your agents negotiation ability… Their ‘Negotiation Success Rate’.
On average, what percentage of their clients asking price does the agent achieve during negotiations?
At Restate, our Negotiation Success Rate is currently 98.76%.
Once you’ve accepted an offer – it’s still not time for celebrating. As they say, “it’s not over until the fat lady sings”. In real estate talk, that means it’s not ‘SOLD’ until all conditions in the contract have been met. Until it’s what’s called “Unconditional”.
The timeframe between accepting an offer and that offer becoming “Unconditional”, is when things can fall apart. Inspection reports can put a spanner in the works. The buyers finance may be declined. The LIM report may show up a problem… there are often situations where contracts need to be renegotiated, or troubleshooting needs to be done in order to save the sale. This is where your “Pre Market Preparation” and having an advocate in your court can pay huge dividends.