How to WIN the property Lotto
Real estate agents are very good sharing their ‘lotto stories’. They are the ones where the property sold far in excess of what the agent or owners anticipated. You may have seen the lucky vendors performing cartwheels in front of their proudly placed sold stickers. Like winning lotto, it doesn’t happen for everyone, but you need to buy a ticket to stand a chance.
So how do you win the property lotto?
Understand who your target market is. The concept of ‘highest and best use’, which is a valuation term, refers to the fact that one particular set of buyers is going to see more value in the property than others. Your target market can change depending on the condition of the dwelling/property and the overall market at that time. But unless you have fundamentally changed what the property has to offer, it will attract similar buyers as it did when you bought it.
Advertise to the target market.
Once you have established your target market, it’s key to craft advertising to suit what is most important to them. For a family, it may be a separate space for adults and a sunny, usable, accessible section so children are easily supervised. For down-sizers, they are more likely to want a property which is low maintenance so it allows flexibility in their lifestyle. Using media channels that closely align with those markets also makes for a more cost effective campaign. Tech savvy first home buyers will not be waiting for the Saturday paper to see what is on the market so wasting your money on costly print advertising will do nothing more than pay to advertise your agent.
People buy what they see. Create and sell the lifestyle that your property offers. Soft furnishings and on trend colours make a huge difference. Good quality, well considered professional photography captures what you have created and drives the people to the door.
The method of sale.
Your best approach to driving a premium price is to choose a method of sale that creates competition. People love to WIN. These methods draw the competitive nature of people by encouraging them to submit their maximum price for fear of losing what could be their dream home. This is in stark contrast to a method in which buyers negotiate one-on-one with the vendor, based on a price indication set by the agent, to reach a mid-point.
No wriggle room
Don’t give buyers the ability to discount the initial offer or make adjustments in their offer based on defects in the property. Order building and LIM reports so you know everything about your property and rectify any issues prior to bringing it to market. Once you accept an offer with any type of conditions, you hand the control of the sale over to that buyer. Staying in control of the sale is essential for driving an above market sale price.
Simplistically put – demand exceeds supply
For those not considering selling at the moment you could always try and win the real lotto so we have included this week’s winning numbers. They are 36,17,20,1,15,4, and a bonus of 3.
As we have been reporting for a while, the Wellington market continues to go from strength to strength. Media has started reporting this now too which will only feed the momentum.
Frustrations are building for buyers in the current market as competition for property increases and stock levels remain low. At the time of writing, there were only 266 stand-alone houses available in the Wellington city and suburbs and so we are likely to see this trend continuing.
Wellington property quick facts
The average sale price for the Wellington city area for December 2015 was $543,500
Average days on the market: 27.2
February 2016 Fun facts
- Lotto NZ was established in June 1987
- The largest ever Lotto prize won by a single ticket was $36,890,255, in the Big Wednesday draw of 24 June 2009 (draw 192)
- The largest Lotto Powerball prize won by a single ticket was $33 million, in the Lotto draw of 28 September 2013
- Instant Kiwi scratch cards were introduced in 1989
If you or anyone you know would value from a considered market assessment by Wellington’s only licensed agent and registered property valuer, please do not hesitate to call. We are always very happy to help. To book your free appraisal today, please click here.