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Hi [name] and welcome to Ian Keightley's Weekly Insight for Monday February 23rd
Motivation determines the Price
In recent weeks I have been coming across real estate salespeople and retailers who are lamenting a lack of sales whilst they continue to offer houses and goods at last years price. This is despite the fact that in the last 2 or 3 weeks buyers seem to be back in the market.
Yes they are, but an increase in enquiry on houses and goods at last year's prices won't bring about sales. The buyers are shopping at today's and tomorrow's prices.
In all sales businesses, real estate, retail, vehicles etc we are seeing sales made at levels we haven't seen for some time. Buyers are waiting for prices to come down.
Everywhere you look there are sales, special offers, reductions, discounts and BIG sales.
The home owner, the retailer, the vehicle dealer all want to make a sale, keep cash flow coming in, move product and fix the problem.
For the home seller it's fixing a problem, financial, family, relationship or career. The size of the problem determines their motivation to sell.
For the retailer its about paying the bills and their staff. Let's move the product and recoup the capital.
For the vehicle seller it about moving the car, paying back the dealer finance, keeping turnover up so their buying privileges with their supplier are maintained.
In each case the degree of the problem determines how low they will go in price, how generous in terms, to make that sale.
The buyers on the sideline are waiting for prices to come down. They too are motivated to grab a bargain. Buyers come out and buy when the deal looks too good to miss. They hate to miss out when the deal gets too good.
This makes it toughest for real estate sales people who have sellers whose price expectations may be in the past market. They want to get a buyer who offers close to the sellers expectation and too often they lose the best buyer by attempting to over inflate the price required to make the purchase.
In every case the final price paid is determined by how badly the seller wants to sell and how keen the buyer wants to secure this great deal. This motivation over-rides past valuations, rateable values, values of the past and in some cases sales are made below yesterday's last sale. Yes motivated sellers and buyers know there is a future value and today that looks like being less.
Motivated Buyers will buy at next month's price today!
Motivated Sellers will sell at tomorrow's price TODAY.
Otrherwise the next offer may be at next month's price.
Ask yourself - where are you letting the perception of VALUE get in the way of a SALE?
Quote for the Week
"One man's bargain is another man's treasure"
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Have a great week [name]
Posted: Sunday 22 April 2018