When selling your home, the following elements all play their part in a successful sale. It’s worthwhile knowing and understanding them, as this will place you in a much stronger position when discussing your sale with your estate agent.
Before appointing your estate agent, why not ask them for their opinion on each. Their response would be a great indicator of their ability, confidence, quality and attitude.
We've not put them in any specific order because they're all just as important as each other.
1) Price:
No matter a property's location or condition, if it's priced right, it will sell fast. Lowering your price can stimulate demand but that's just an indicator that it was either overpriced in the first place and or you're desperate to sell. Unfortunately, once your property is on the market, this element is usually the only tool you have to manipulate demand and enhance a sale.
2) Location:
Location, location, location. As the saying goes, location is everything. However, you have to remember that not everyone desires the very best locations. The most desirable areas will always receive the greatest demand and highest prices, but some buyers wish to purchase a property in the area in which they grew up or a property that needs a little work on.
3) Demand:
Demand is based upon the number of active buyers looking to buy in your area. It is closely linked to both location and available funding. Fortunately, you can stimulate demand by lowering your asking price, but this rarely works if the potential buyers aren't looking in your area.
4) Supply: (Housing Stock)
This has to do with the availability of, or lack of, housing stock for sale in your area. It also has a direct bearing on the success of your sale and how much you sell for. It dictates price.
5) Available Funding:
Funding availability (mortgages) or cash availability has a profound effect on demand. It’s the lack of funding that is currently keeping the housing market 'on its knees'. Funding is fundamental to the property market. Without it, we have no buyers and therefore, no sales. Those with cash are waiting to get the very best deals and will often sit and watch from the wings before snapping up a property.
6) Value:
Your asking price is the major factor here, however, many other factors come into play too. Your property's location, it’s size (sqft, number of bedrooms, toilets etc). Size and quality of your kitchen and bathrooms. It's overall condition. The number and condition of outbuildings, plus the size of the gardens, all contribute to your property's perceived value to individual buyers.
7) Presentation:
The better your property is presented, inside and out, the more desirable and appealing it will be. This will have a profound effect on how quickly you sell and at what price. If you cannot or will not invest in staging your home it will be sat on the market for a long time.
8) Exposure:
The wider the exposure a property has on the market, the more potential buyers will see it, hence the faster it will sell for the most money. Good estate agents will have strong social media presence and be at the forefront of the keywords on the internet where potential buyers will look.
9) Correct Target Marketing:
Targeting your property to the correct target market will also enhance a quicker sale and a higher sale price. Easier said than done but a good estate agent will know how and where the target market is and reached.
10) Good Sales Negotiation Skills:
This element is crucial. Don’t underestimate it. If your negotiator at the estate agent hasn't had proper training in sale negotiations (most don’t), this could easily cost you thousands in lost sales revenue. Don't underestimate the importance of having a good negotiator on your side. Don't fall down at this final hurdle.
As you will realise, all these elements work together in determining how fast your property sells and at what price.
The first four elements listed; Price, location, demand, supply and funding are elements that you have little or no control over. They are dictated by the overall market conditions. A good quality estate agent should explain all these elements to you and how they will impact on your sale.
The remaining elements can be manipulated to your advantage. This is where a good quality estate agent comes into their own. In a nutshell, a good quality estate agent will advise you honestly on each of these elements and maximising your chances of selling your property quickly and for the highest possible price.
Before signing with any estate agent ask yourself “did they volunteer to explain any of the above elements to you”. Where their explanations clear and concise or did they rush over them and mumble something about how irrelevant they are. This is your chance to identify a good quality estate agent.
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