We often talk about the four components to maximising the value of any home: price, presentation, marketing and the agent. Understandably, it is often the first of these that is of utmost importance to a vendor. When you are selling your home, you want to know that you are selling it for the highest price possible.
We believe that in order to achieve the maximum sale figure for a home, pricing your home fairly from the start is crucial. However, what is startlingly obvious when you scroll through the latest listings online, is the lack of a price - or price guide - on the majority of properties you see.
As a company, we pride ourselves on providing reliable, honest and transparent communication, and we strongly believe that one of the key factors in this is the use of price guides. Putting a price guide on a property immediately allows a prospective buyer to see if the home is in their compatible price range, and at the same time it means we are opening up to 100% of the buyers’ market.
We must stop underestimating the value of a price guide. Buyers are becoming increasingly hesitant of listings without any direction in price, and in today’s world people are purely time poor. They don’t have the time – or the inclination – to have to pick up the phone and call an agent and ask them what the price of a property is. Often to which the response is simply, “We aren’t sure, you’ll have to come and have a look.” Today’s buyers need information readily available at their fingertips.
"I found the price guide fantastic, I was getting to the point where I wasn't looking at anything that was marketed without a price because it's such a waste of time often" Sharon Nichols.
Not only is this a consumer-friendly practice, but, as a vendor, it can actually cost you money if you don’t. It is our job as agents to get the best price for the vendor. To do this, we need buyers to engage with the home online, and then come along to the open home.
For this to happen, the price guide is imperative. Without this crucial detail, the buyer will move straight past the home entirely. Our job is to match the wants of buyers with the wants of sellers. By catering to the buyers want of a price guide, you will get more buyers through the door, which will bring the seller the best price possible.
Property Price Guides in Christchurch | Why Najib?
At Najib, we always have a price guide on our Christchurch properties. Our average number of days on the market is under 30 days, and we achieve amazing prices for our vendors. They are incredibly pleased with the result, and happily refer us to friends and family. Our buyers are also thrilled with the outcome of securing the home they have chosen, and express their enjoyment of working with us.
"The price guide gave us people through the door. The final outcome was multiple offers on the property which we were happy with. There were no offers under what we were expecting" Alex and Pip.
So why don't all agencies use price guides? Some firms are restricted by tradition and won't employ price guides; others argue that by not giving a range, the market will determine its own price. This statement is true; however, if only 50% of the market comes to an open home because there is no price guide on the property, then the outcome is not going to be an accurate reflection of the market. This can lead to the house being under-sold or not sold at all.
We believe that a professional real estate agent will have a firm grasp on the market. By completing a comparison analysis, and following an in-depth discussion with the vendor, they should know within 10 – 15% what a home will fetch.
Price guides bring transparency and help ensure everyone is happy with the end result. The equation is very straightforward: Buyers want to know the price; your client wants the best price for their property. To achieve the best price, you need the optimal number of buyers.
I encourage you to take your time and do thorough research. Selling a home is something you will be doing once a decade. It is worth spending the time to find the right person for the job and enquiring into their use of price guides, as it will likely sell for less without this practice.
Get in touch today at info@najibre.co.nz