Have to price your property correctly when putting it on the market for sale.
Hi, my name is Danny Valencia with My City Nest powered by Keller Williams property specialist and a passionate Londoner. And today I want to be talking a little bit more about pricing strategy because it's a question that I get asked on a daily basis and it's a fair question, especially being a property specialist. Now the average agent out there has one strategy in pricing your property. I on the other hand have Three pricing strategies empowering you the seller to make a great decision on what's the best strategy for you given your circumstances. So, let's start off with strategy number one, which is above market value. Now, this is a strategy where we're looking for that emotional buyer. I'm talking about that buyer that comes into your home and just absolutely falls in love with your home and decides to actually pay over the odds as long as they can actually make sure that they can secure that deal and make sure that they can have that home for them.
Now we call this strategy a needle in a haystack, there are buyers out there and we can find those by. One of the promises that we make to our sellers is that if there is such a buyer, we make sure that we turn every stone out there to find that buyer. It does come at risk because it means that your property potentially will be on the market for a longer period of time and the issue with that is that uh, time is the enemy of a property on the market. The longer your property's on the market, then the less it's worth in the eyes of the buyers. I hope that makes sense. So if you need to make any adjustments, you need to make those adjustments quickly. The second pricing strategies that we have in selling your home would be fair market value. Now this is where you sit down with an agent.
You look at the evidence, you look at the coms and decide to price within a 3 - 5% or more fair market value. This is where buyers are going to be looking at and this is where lenders, mortgage companies, banks are going to be lending against, so it's a good strategy and yet again you need to keep an eye on it because you need to make sure if you haven't priced above or below and need to adjust. Pricing strategy number three is pricing below market value. Now, before we get shocked, let me explain. When you have a property that's in the beautiful condition and it's in a great neighborhood and you have an aggressive marketing plan, what you'll end up with is a lot of people come in through the door and you're going to end up with multiple offers, which is what exactly what we had a few weeks ago on a property where we had an open house, had a 19 point marketing plan executed and we ended up with multiple offers above the actual price that we had put on the market so it can work very well.
A word of caution though. If you're going to execute such a pricing strategy, make sure you do it with an agent that's aggressive on marketing not an agent that's just simply going to slap your property onto the Zoopla and Rghtmove. Sit back and wait for the calls to come in because then you're going to be in trouble. So again, it's risky and you need to make sure you have the right agent with the right marketing plan. Now before I let you go, I wanted to follow across one bonus tip in pricing correctly. This is just because I see so many agents making the mistake or going down the route of the 99p strategy. So let me explain what that means. Let's say your property's worth a £1,000,000 and your agent recommended that you go just below at 999,000 pounds. Please don't do that. What's going to happen is that you're going to completely miss.
The buyers that looking between the bracket of a £1,000,000 and £1,100,000. That's a huge segment of buyers that you're going to be missing. So while pricing in the million pounds, you're going to have the best of both worlds. When people go online and they're looking for a million and you're going to have those buyers, who are looking between a £900,000 and £1,000,000 and £1,100,000 and that is what you want. You want to have the most exposure as possible. So I hope this has been helpful for you in terms of pricing your property correctly. You have any questions whatsoever about thinking of putting your property on the market, or perhaps you have a property in the market and you just want some partial advice. Feel free to get in touch. Danny Valencia My City Nest powered by Keller Williams.