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The key to achieving the best net price for our vendors is to have buyers competing with each other to buy their property.
Priced property potentially attracts the widest level of enquiry. But the price level advertised is vital if this market approach is used in order to gain the best price.
How do you determine that vital price?
We use a range of techniques keeping in mind the factors listed below..
Buyer Enquiry
Buyer enquiry will be at its highest when your property is first introduced onto the market. If your price is seen as above the current level for similar properties buyers could take it off their list without visiting.
You may think this will not matter as perhaps one or two buyers who can afford the price will visit and you anticipate being able to negotiate with them. However if their first impression is that other properties they have seen are better value you will have set your property up as a “pinball listing” one which bounces the buyers back to other properties perceived as better value. You will have helped sell your neighbours’ property rather than get a better price for your own.
Salespeople keen to get you to list with them may “buy the listing” by recommending a list price above the current market saying you can “always come down”. Why would they do that? Overpriced listings help them sell other properties on their books and after some time on the market (but not in the market) their more desperate vendors will be easier to negotiate down for their persistent buyers. Rather than buyers competing with buyers and the sales team working for you, the vendor, you may well find yourself faced with isolated or no offer situations and eventually accepting a lower price than a well managed marketing plan would have achieved.
Bait marketing where buyers are enticed through using wide price bands or unrealistic starting numbers associated with phrases like, Bidding from …. , Buyer enquiry over…., sets out to attract the wrong buyers for the property. These are buyers who cannot afford it. This might benefit the agents who may be able to direct enquiry to other properties but can inconvenience buyers. Worse there could be a continuous source of negative market feedback from visitors (who can’t afford your property) which would be used as a conditioning lever to encourage you to accept a low price.
Time on the market is a critical consideration. The longer your property remains on the market the more negotiating power shifts to the buyers. However you need some time on the market to get the property introduced to the buyers it will appeal to.
Re-active Marketing?
Reactive marketing is slow and expensive. Some agencies rely on advertising to spark enquiry together with phone calls after checking past diaries and recent memory for possible purchasers. This process can take weeks and if you receive early offers you will have a risky choice to make, whether to accept or reject them, without knowing all possible buyers have been reached.
Agencies dependant on the reactive approach often rely on Auction or Tender marketing with significant vendor paid advertising to attract buyers and create a deadline for them. These strategies are risky if not managed well and require more time and promotional cost than modern methods. If the best buyers are not reached this way or don’t respond to the advertising campaign all the pressure goes back on their vendors.
You however are in luck. If you are reading this you have discovered an agency that has proactive database systems in place to provide quick contact with all their potential buyers who would be interested in your property. They will have back up systems to get in touch with others active in the market place who could know of buyers.
Their systems will also enable them to link interested buyers to your property and use email or phone calls to advise them when an offer is about to be presented, ensuring all your potential buyers have a chance to compete with each other.
They will give you the option of “a preview by invitation” and an opportunity to assess the level of demand before finalising your price or marketing plan.
How do you assess a proposed marketing plan? 
We assume by now you will have rejected a General or Open Listing – you will have rejected commissioning salespeople to work against each other and for their buyer against you.
And you will have rejected Private Sale – you will have rejected avoiding most buyers who want the convenience of dealing through an agency and attracting the most independent, experienced and determined negotiators from the remaining minority.
This leaves exclusive agency with or without a price.
No Price Marketing 
No price marketing (usually Auction or Tender) is often promoted as a way to have buyers emotionally involved with your property without price as a barrier. This does not always lead to the best results for vendors. All agencies can point to past successes with Auction and Tender marketing plans and some advocate one style more strongly than another. The continuing debate among the experts about which method is best should encourage you to have reservations that any particular system will automatically be right for your property.
Auction
For an Auction plan to work well on the auction day, there needs to be 2 or more buyers willing and able to pay cash for your property at a level higher than your reserve. For your protection that reserve needs to be close to the price a current market guide indicated your property would be worth when you first put your property up for sale. This is obviously not easy to achieve for all properties but works exceptionally well for some.
Tenders
Tenders attract considered offers where buyers are influenced by their advisors, valuers and lenders without the stimulus of direct competition with others willing to buy the property. The range of prices in a tender may be very large indicating the gaps between viewing the property as an investment or as a desirable home attracting a premium price. However many buyers who “just miss” in a tender later report they would have gone higher if only they had known how close they were.

Graham and Lorraine will talk you through and show you examples on how to avoid the above happening to your home and how they extract the highest possible price out of every purchaser in a Tender.

The Beauty of Auctions and Tenders are:
> The buyers have a timeline to work to - a date that they must have their offers in by. They have time to do their 'Due Diligence' on the property.
> The buyers realise they will probably be in competition and may miss out if they don't put their 'best' offer in rather than try to negotiate the vendor down to their figure.
> The deadline is also great for the vendor as well. They can make plans for the Tender/Auction date rather than having offers spring on them at a time that they may find them difficult to focus on. Vendors are also able to make their future plans with a date to work with.
Why publish a price?
Graham and Lorraine feel that in almost every instance more qualified buyers will be attracted to a property with some sort of price guide attached to it. Many buyers have told Lorraine and Graham thay they don't bother looking at properties with no price indication.

It is also possible to attach a vague possible buying range (not an asking price) to Tenders.
Choose as your agency the one that has the best strategy to achieve the best net price. It is clear that the marketing strategy that will achieve the best net price for you will depend on a wide range of factors including:
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 The state of the market
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 The uniqueness and presentation of your property
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 The time you have available to achieve a satisfactory sale
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 The level of promotional support you want to apply
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 The negotiating skills of your marketing team
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 The acceptance of different methods by buyers in your area
>
 The financial capability of buyers attracted to your location
All of these can be reflected in market demand and will be assessed by our marketing team after the initial “preview by invitation” we will arrange for your property.
Armed with the feedback from this pro-active approach we can determine with you which marketing plan will give you the best opportunity to find the most interested and able buyer and discover the highest price they will be willing to pay for your property.
for more details, please contact us:

Lorraine Girvan & Graham Brockie
Hutt City Real Estate Specialists

Lorraine 0274 436 981
Graham 027 205 2367
Office 04 569 3352
Email Click here
Website: www.stressfreerealestate.co.nz

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