The biggest mistakes that often occur when you are looking to sell your property is that you may go with the easiest or what seems like the most sensible options – by giving your property listing to a friend or family member, by choosing the agent who offers the lowest commission, by selecting a sales agent who has a little number of listings and will therefore dedicate their time to servicing you, or the agent who tells you “I won’t spend your money on advertising, it’s not necessary”. There is a well known acronym in the sales industry that good sales agents use and that you need to follow – the 4 P’s…Profile, Presentation, Presence & Price!If you get all 4 of these right, you should be on your way to a great sales result…
Profile – choose an agent who is a known market leader. They are in that position because they sell lots of property and they sell it well – for the best price. They may charge a slighty higher commission than “Joe Blogs” down the road but I’m sure if you look at their sales history, their results warrant a higher commission. Look at it this way…Agent A charges 2.5% on a $500,000 sale = $12,500 commissionAgent B charges 2% on a $500,000 sale = $10,000 commissionYou may look at that scenario and say, “I’ll choose agent B” but I’m sure that if Agent A is a high profile agent with a good database of buyers and great sales skills to sell your property, they are likely to achieve at least 5-10% more than Agent B – which will actually result in $25,000 to $50,000 extra in your pocket. $2500 is one extra bid at Auction, and a great sales agent will get you that and more!
Presentation – a property is never going to achieve its maximum sale price if it is badly presented. The buyer who is likely to pay higher for your property is the home buyer as they will become emotionally attached to the property, so present your home for sale well to attract home buyers. Remove clutter from rooms – this includes personal books (I have seen a copy of Kama Sutra in a book case before and it made me wonder what the current owners did there!), family photos, and personal items. You want the buyer to visualise where their own items will go, and the less cluttered a property is, the larger it will feel. Mow the lawns, take out the garbage and if you have time, apply a fresh coat of paint to the walls (this will immediately life the look of a property but make sure the property doesn’t smell of paint when buyers inspect).
Presence – if you want to sell your home for the highest price possible, you need to tell the world that it is for sale. A good sales agent will recommend an advertising campaign be included as a large component of your marketing and from my experience, this is often a necessary evil but there are instances where it may not be;
a) Your property is an investment property and the likely buyer may be from overseas or interstate OR b) Your buyer is most likely to be a Gen X or Gen Y – as they are less likely to pick up the paper than they are to surf the internet for their ideal home or property investment
Price – There is two main methods of selling your property in Australia – Auction or Private Treaty. When it comes to choosing a method of sale, you need to know your market. In Sydney & Melbourne, the market is used to Auctions and this can often be the best way to maximise your sale price, however, in areas like Brisbane and Perth, the Auction process can be detrimental to a sales campaign, as buyers prefer the transparent process of a listed for sale price. In some circumstances, buyers have paid above the asking price as they have recognised value in the asking price and have been forced to compete with other buyers to secure the property. The chosen method of sale is also reliant on the current state of the property market. If you are in a Buyers Market (ie. more property for sale than buyers), I wouldn’t recommend an Auction unless you are seriously committed to selling and will take whatever bidscome your way on Auction Day. However, if you are in a Sellers Market (lots of buyers and not much property for sale), Auction can the best way to increase your sale price, as the fear of missing out kicks in and buyers often pay well above their intended limits.Above all, if you are committed to selling, do your research – attend open homes in your area, talk to your neighbours, read agent testimonials and ask to speak to previous clients. If you know your market, you will know the best agents and the likely sale price for your property, allowing you to trust your chosen sales agent and in the end you will feel like you have made an informed decision when it comes to crunch time and you do sell!