In a rising property market, we take a look at how to get top dollar when selling your home – it’s not a given!
Recently, we shared an update on a great auction result we secured over the Easter weekend. Situated on the border of Woollahra and Paddington, 28/204 Jersey Road sold for $780,000 – $30,000 over its reserve. We believe this is largely thanks to the unique sales strategy we developed in consultation with the owner.
Senior Reporter at the AFR, Michael Belby was very interested in this sale and wrote a profile of the sale, labelling the result “intriguing”. In his piece, Michael made particular reference to it being the only auction in the area held on Easter Saturday. He also noted our somewhat unusual decision to share the reserve price with interested parties prior to the auction.
This sale, and the attention it’s garnered, has emphasised the importance of having a good strategy. While careful planning will always help maximise your sale price, this is often overlooked in a rising market. At times like these, it’s almost expected that general demand will be enough to drive up the price of specific properties.
Here at Local Agency Co., we don’t think that is necessarily true – particularly in certain sections of the market. As we’re seeing right now, the strong selling conditions are leading to more listings, so, while there may be plenty of buyers around, the competition for their dollar is also increasing.
In this environment, getting top dollar for your property is all about standing out from the pack. You need prospective buyers to see, and be won over by, your place. And, to do that, you need a carefully considered sales strategy, tailored to suit your property and target buyer.
But what does a good sales strategy look like in a rising market? And which planning decisions have the biggest impact on the outcome of a sales campaign?
Flexibility and responsiveness
The most important thing to know is that sales strategies are not “one size fits all”. While most campaigns may seem largely the same, there are many small differences that can impact the outcome. Each of these points of difference represents a decision to be made.
For example, most properties that go to auction are advertised for three to five weeks first. During this time, bi-weekly inspections are held. However, you can set your timeline and inspection schedule to be whatever best suits you and your potential buyers.
You also need to be flexible and willing to adjust your approach throughout your campaign. Market conditions can change quickly, so you need to stay across the latest developments. And, if something comes up that could impact your sale, you will need to respond accordingly.
For example, we recently sold a lovely 2-bedroom apartment on Fullerton St in Woollahra. Shortly after listing this property, two other apartments in the same complex came onto the market – and both were arguably more attractive properties. In response, we recommended pushing out the auction date, to make it the last of the three sales.
This change did two things:
- It helped reinforce interest in the property, particularly from those that missed out on the other apartments in the building.
- It provided a clear expectation for how much the property would likely sell for.
As a result, we ended up achieving a much stronger price than expected. In fact, it sold for more than one of the other apartments, which was updated and had better views.
Clarity and consistency
While you should be flexible in your approach, you still need to have a clearly defined plan. It’s likely tweaks will be required – however your overarching strategy should not change. This will help give your campaign consistency and allow you to build momentum, particularly if you are going to auction.
A set strategy will also allow you to be consistent in your communication. It will provide structure to your messaging and enable you and your agent to build the story of your property. This is crucial as it’s what your potential buyers engage with first.
We have always found that it’s best to be as transparent as possible with potential buyers. Not only do they appreciate the honesty, they also respond better when they feel they are fully informed. After all, property is a major investment and a buyer wants to make sure they’re making the right decision.
When planned correctly, being open about the details of the sale can also help keep buyers interested. It can give you a reason to re-engage with those that have previously shown interest, toward the campaign. It also means that, if you do go to auction, participants know what to expect and come ready to compete.
Want more information?
If you’re considering selling and want to make sure you get the best result possible, give Local Agency Co. a call. We’re experts in developing tailored sales strategies and will work with you to get the best result possible. We can also advise on everything from preparing your property, to your marketing approach and the timing of your sale.