In recent weeks we have seen some stunning property fail to achieve a sale - this has been across all price brackets and in many geographic areas. Some retailer clients are also having to work harder to secure that sale. Whilst much of it is price driven let's look at a few things you may find helpful this week.
At Auctions and Tenders - we are back to needing 4 buyers saying they will bid or make a tender to have even one. Don't count your chickens too early. Yes 4 need to say they are coming to bid to be sure of having 1.
Set buyer deadlines using Auction and Tender so buyers need to act or risk missing out.
Increase the size of your marketing budgets.
Get the marketing money up front.
Only use Auctions and Tenders when vendor motivation is HIGH and the property has NO obvious sales hindrances. It must have appeal and not be TOO different.
In recent weeks we are finding most sellers are 5% - 10% out of zone. This is not a time to price in the future like last year. Don't hold back in sharing this with your vendors.
Last week when I got to the 6th vendor meeting for the day I opened the meeting with' "The last 5 vendors have all told me the same thing. They don't have to sell, they're not in a hurry and if they don't get their price they will keep it and rent it out!. I hope you have something different to say?" The vendor was stuck for words.
They all have a price that historically would have been reached if things had continued as they were. "You know 6 months ago I would have agreed with you. Now the buyers are reluctant to extend to that level as there is more choice and lots of media noise about not taking too big a risk. We are fighting that for you but recent sales and those that have failed to sell, are indicating there is a need to adjust to get that sale.
It’s time to have a re-think on how you educate your vendors and excite your buyers.
Quote for the Week
"If an idea is good enough to have once, it's worth having twice"
Posted: Friday 31 August 2018