Why Excessive Advertising Costs are a Trap
10.04.2024
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When you are selling your property, there are three prices to be acutely aware of:
* Marketing Price
* Current Market Price
* Best Selling Price
Marketing Price is the price the agent markets the
property at to buyers. Legally and practically speaking, the final selling
price may be higher, lower or equal to the marketing price. Some agents may
deliberately price above or below the current market price creating either a
frenzy or a standoff with buyers in the process.
Current Market Price is the fundamental value of your
property. When an agent or valuer assesses your property’s current market
value, they are not stating that you can’t or won’t achieve more. It’s more a
case of stating the fundamental value at that point in time.
The Best Selling Price is the
price the best buyer in the market is prepared to pay for your property, at the
end of a well-run campaign. This is an unknown figure at the time of listing,
but some vendors and agents may engage in (futile) guesswork in anticipating
what the best selling price will be. However, until a campaign has been run and
a buyer has been sourced, it will only ever be guesswork.
The key to ensuring your agent delivers the
best selling price in a timely fashion is to use the right marketing price.
The marketing price is sometimes determined by
the vendor, sometimes by the agent and often between both agent and vendor.
Generally speaking, agents want a lower
marketing price and vendors want a higher marketing price.
The best marketing price to ensure buyer engagement
throughout your campaign is the current market price.
In recent years as the market boomed, even
overpriced homes were soon correctly priced as prices rose to meet vendors
aspirational number. Vendors could get their marketing price wrong and still achieve
best selling price.
Now that the market has stopped booming,
vendors risk damaging their campaign if they overprice. Therefore, being
pragmatic and understanding current market price, which
becomes your marketing price will help deliver you the best
selling price.
This article is from Peter O’Malley’s
blog, Real Estate
Uncovered.
FOR A FREE COPY OF ONE OF PETER O’MALLEY’S
BOOKS, “INSIDE REAL ESTATE” OR “REAL ESTATE UNCOVERED”, CONTACT US TODAY.
Stephen Smith Real Estate |
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