When you’re advising your seller clients—on both price and presentation—the most important thing to keep in mind is this:
WHO is the target buyer? 🤔
For example, let’s say it’s a starter home in a newer suburban neighborhood.
The most likely Target Buyer is a young couple with little kids or planning to have kids.
So what’s important to them?
One thing could be the proximity to parks and schools. 🏫 Whether it’s a plus or a minus, this needs to be considered when determining the list price.
Another thing is that young buyers probably prefer more modern finishings. And, they want as many bells and whistles as they can get (within their limited budget).
For example, some starter homes have master ensuites, and some don’t. Does your Target Buyer want an ensuite? 🛁
You bet your sweet bippy!
All the arguments from your sellers about why it’s better not to have an ensuite (bigger bedrooms, one less bathroom to clean) mean diddly-squat when you try to convince the Target Buyers that they don’t need one.
They’ll stare at you like you’re a blithering idiot. 🤤
“OK, fine. But the difference in cost between a house with an ensuite or without an ensuite is probably less than $10K,” says your prospective seller with no ensuite.
Resist. Urge. To. Roll. Eyes. 🙄
The difference in cost at the time of construction is ancient history. We’re talking about perceived value TODAY, and it’s a LOT more than $10K.
But it’s not always about price. What inexpensive improvements could be made to increase the value of your new listing, from the perspective of your Target Buyer?
A Home Staging Consultant could provide some great ideas for maximizing value. Perhaps they’ll recommend a splash of bright paint on a highlight wall or a powder room. Or, maybe your sellers need to freshen up their artwork with some modern pieces? 🖼️
Remember, it’s your job to define the Target Buyer and determine the best pre-listing prep and marketing ideas to maximize the property’s value. Bringing in another professional to help will only enhance your image.
By concentrating on catering to your Target Buyer, your clients will sell quicker, for more money, and you’ll get more referrals.
This article was inspired by module #10 – The Big Picture CMA – part of the Agent Skills Master’s Program.
Within this module, you’ll learn all about a simple but highly effective simplified system for determining the right price, developed by Ted, and now offered exclusively to Agent Skills students. The Price Adjustment Method? Throw that ridiculously complicated system in the garbage where it belongs. Keep it simple, and obvious.
Here’s another article inspired by the same module: The Big Picture on the Competition.