Just had a great training session at our Takapuna office on the changing climate of our Real Estate market & what options we should explore to increase our transparency with the public. There seems to be a lot more demand from the public on price transparency when price is not given for example, via Tender, Auction or By Negotiation.
Our fear obviously as agents is once a price is given early in the sales process, we often shoot ourselves in the foot. For example if we appraise a property at $1,000,000 based on recent sales then take it to market under the Tender or Auction process & give that information out early to a buyer that is interested, 2 things will happen, firstly the buyer thinks that’s within my range so ill try to buy this property, secondly the buyer thinks this is not in my price range due to only having $950,000 so ill move on to another property. Here lies the issue, if the market sees the value more towards $950,000 than a $1,000,000 by the end of the campaign & the owners are happy to move at that level but the buyer at $950,000 has since purchased, we lose our interested parties. It’s a double-edged sword.
One idea is to market the property with a conservative price guide or a” bidding from” guide but at this stage the Real Estate Institute are not onboard. The main thing is we keep looking to improve our transparency with the public. Watch this space…
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