Let's talk about Home Selling Strategies. From what I've been reading lately I guess there are two schools of thought on these, one that is based on "Price" and the other that is based on "Traffic"
The 'Price' strategy more is more traditional and more likely to appear dominant in a Balanced or Sellers market, some of the characteristics are
-Pricing the house in the lower part of the determined market range, this draws qualified interested parties to the table, in general most homes have a value range 10% variation www.zillow.com http://activerain.com/blogsview/535342/Negotiating-for-a-House
-Pay regular commissions to agents; in our region this is typically 7% on the first 100,000 and 2.5 or 3% on the remainder, attracting agents from all realty companies, who have the largest pool of qualified buyers www.fvreb.bc.ca take a look at the FVREB or the Fraser Valley Real Estate
-Someone will 'Wheel and Deal' on the price, it has been proven to me time after time that the moment they say "I don't want to barter and play games", that's exactly what they want to do! If you give them the best price up front thinking they will thank you for making it short and sweet they will pound on you until there is bone fragments left!
-Articles of home are used as bargaining, that old wagon wheel chandler simply must be included in the sale
Traffic has been used by developers for years, and it has been extremely successful for them, just take a look at the success of Del Webb http://www.delwebb.com/About/History.aspx and Rennie Marketing Systems http://www.rennie.com/ using a series of slick promotions, glossy advertising they sell 'lifestyle' and emotions rather than bricks and mortar. This creates a parade of people - hype - and can create a frenzy causing people to become caught up in their emotions and make silly decisions, like paying way overvalue. Here are some of traffics characteristics
-Pricing in the upper part of the range, giving the seller quite a bit of wiggle room, this allows for things like, 'purchase by X and get the upgraded stainless package included at no charge"http://www.omalife.com/
-Financial Incentives, this is plain and simple most often expressed by a 'reward clause' move in by X day and we will pay your GST and taxes, or I am starting to see rate buy downs coming back, Sutton West Cost has arranged a Fixed 5 year rate with a unnamed insurance company for 4.5%....
-Bonus Commission structure, the 'builders representatives' like Rennie Marketing Systems http://www.rennie.com/ will offer have bonus for selling X amount of units within a predetermined time phase, so if they sell out the entire phase in a month they will be rewarded by the builder and it will be passed down
-They will show the model unit AS MUCH AS POSSIBLE, they will take anyone and everyone through, they are not there to qualify they know that someone will fall in love with there project and buy, its just a numbers game pure and simple.
-Curb Appeal, these marketing companies are masters at having you buy into a lifestyle with dozens of glossy photos and co-branded imagery http://www.southpointlife.com/ You know if you are hearing Sub-Zero more often than the size of the construction beams used curb appeal is at work. http://realtytimes.com/rtpages/20030620_curbappeal.htm
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