01/06/2023
Reflecting on the last 5 months has been a rollercoaster journey π
When you feel there is a lack of control on the future, we can sometimes tend to worry over what this means. Only when we feel in control we can usually relax
We can't compare this market to what happened between 2021 & 2022, but we can understand that it's different, recognise, learn from it, grow and adapt.
We need to get control back so that we can perform at the best for our clients.
A short story about a property sold locally (although this is 1 of many)
Within a half mile of that property the highest value comparison was Β£360,000, there home was nicer than the rest, but we had two challenges
1. How much will the market value a more modernised home
2. How much will they value it in this market.
So we now need to create two things knowing this.
1. Control over the market (well as much as possible)
2. lower the risk factor for the seller
To create the best opportunity, we knew that Β£375,000 would be a little low, when we consider the cost of the work and difference and for them to move forward, they would be happy with a little over Β£380,000
We open up the guide price and discuss the 'emotional risk' emotional risk in selling is marketing price not what you would accept, as a homeowner you are in complete control.
We Guide price this home at Β£375,000 - Β£400,000.
We created demand, sure, but there is a plan to this demand
We had an enquiry come in from someone that really wanted to view the property, within 24 hours he was in and he put an offer forward (too low for the owners to accept, unfortunately for the buyer) but the sellers now have an offer, creating leverage for the viewing day (worse case they have set a new price point Β£15,000 more than had been achieved in the last 3 years)
We brought all viewings forward as this offer come forward creating more demand for that seller. That seller has now got the most leverage possible to get value for their home. - Value is for both the buyer and seller
Side story to explain...
Most people have an Iphone or Android phone that costs anywhere between Β£500 - Β£1000 but there are really cheap options out there. We pay more because, we feel it is worth it and the cost of something cheaper is far more than the financial saving we make. To create value for a buyer, yes paying more than would seem data driven, but they have also bought something far more valuable for when they come to sell the property.
Back to the Story...
So they achieve Β£12,500 more than asking price and go on to negotiate a property down by Β£12,500, creating for themselves Β£25k equity that would have otherwise not been possible
In this market, it is more than just the interest rate rises and the market scares.
It is time create control, demand and put some science into a largely uncontrollable world