Selling at the Top of the Market

Recently, someone asked if there are different strategies for selling a home in a slow market versus a robust market. The short answer is no - or at least it should be. The reality is, there are successful approaches for selling a home at the top of the market - regardless of the market itself. After all, we cannot control or change the market, so we must have a sales process that works effectively to make sure that our clients' homes sell at the top of the market. What's that process - it has 4 key strategies that I'll summarize below - Positioning, Exposure, Negotiation, and Execution.

In terms of positioning, the objective is to position your home against the current market to have the highest perceived value. Now price is a significant component to that - and pricing strategies will vary depending upon the current market conditions - but understanding and getting an assessment is paramount to proper positioning. While most agents rely on the industry standard CMA (comparative market analysis), that tool, by itself does not provide a comprehensive assessment of the market and can often leave thousands on the table for a prospective seller. To set the best price, up front, which is the absolute best pricing strategy, it is important to have a comprehensive strategic market assessment that provides details on pricing and trends that make it clear and understandable to the seller to set the right price.

Other important components of positioning your home against the others on the market are staging and curb appeal. We offer a strategic home preparation plan to the our sellers that includes staging reviews, a complete home preparation audit and curb appeal plan to ensure that our client's are armed with the details they need to make their home stand out within the market.

Exposure is another key element to selling a home at the top of the market. Even if a home is priced perfectly and is beautiful - if no one sees it it makes no difference. An effective exposure campaign will align with current buyer trends and preferences. Many agents still rely on outdated an ineffective traditional marketing methods - yet, technology has vastly changed real estate and the means for attracting qualified buyers. By understanding current technology. buyer trends and preferences, we can apply our resources in a more targeted effort in those areas where your home gets the most exposure.

From a negotiation standpoint, it is important to understand that you've lost 80% of your negotiating power once you have the offer. What I refer to as pre-emptive negotiations can add value to the home. So how can you strengthen your negotiating position. Well, any good lawyer will tell you that they never ask a question they don't already know the answer to. Why is that - very simply it improves their negotiation position. The idea is to negotiate from a position of power - and knowledge is power. Pre-inspections on homes offer one such alternative. Knowing up front what will come up on an inspection report - and having the opportunity to repair items ahead of time - gives the seller the advantage in negotiations. And remember, the cost to actually repair or replace an item is, as a rule of thumb, about half of what is asked for in an allowance. Also, having clear guidelines and parameters of your ultimate goal is helpful and allows your agent to set some expectations early in the negotiation process.

Finally, execution of the agent, team and broker can make a difference in the home selling process. Perhaps the most vital to this is feedback and communication. An effective home marketing plan should have a systematic communication strategy in place that outlines the frequency and method of communication between the agent and owner. By providing ongoing feedback and market data, home sellers can be confident of their decisions until the home is sold. Particularly in a changing market, the ability of an owner to make appropriate and timely changes can make the difference between selling for more and selling more quickly.

Any home can sell at the top of the market or the bottom of the market. The difference may well be the approach to getting it sold.