Has your house lost value? Yes, or no?
Our fascination with house values in New Zealand arguably consumes just as much thought time as our favourite hobby or sport. Possibly more. Especially at the moment.
Guesstimating and estimating our personal wealth based on our values of the property we own has become as critical as balancing our bank account. For those who do not own property, it is finding the best rent whilst wondering if the property market is something you will ever get access too.
We, in the real estate industry often make this even more difficult to navigate. The offerings of ‘free’ market appraisals and agents’ opinion of price can often be wrong or influenced by the motives of the salesperson.
Here’s why predicting your value through a ‘free market appraisal’ is flawed.
• All salespeople have the same access to the same information. Yet they see values differently. This demonstrates how subjective the information regarding previous sales can be.
• Some salespeople (not our people) can ‘colour up’ your prospective sell price and flatter you with an over promised outcome that will later elude you when trying to actually attract a buyer.
• The big unknown is the budget and the access to finance that a buyer has. This is massively affecting what properties are and are not selling for in this current market.
• Free market appraisals are not really ‘free’. No, you won’t have to pay for them, but the reality is, no-one ever does! So how can something that never costs anyone actually be free. It has no value anyway. Doesn’t it??
• No house is ever the same. Nothing compares to yours. Truly! Every house is different. Even if it is the same design.
Buyers most often include emotion and ‘feeling’ when attracted to a house. Not very often does a buyer purchase a property on cold hard facts and figures and logical values.
• Buyers choose between houses currently on the market. They will look at how yours compares to others which are available at the same time. Thus, when a salesperson compares your property to others that have already sold or previously been on the market, then in many ways, those comparatives are irrelevant.
• The data is old. Often by the time a closely similar property is put under contract, become unconditional and then settled and recorded on the public record, it could be three to six months since that particular buyer made that offer and the vendor accepted it. With the market changing so rapidly, then this can be an unreliable reference for you to predict your potential value.
If I had my way, I believe real estate salespeople should not be required to value your property. Currently by law, they have to.
So how do you know what your property is really worth? That’s where good salespeople who know what they are doing can legitimately help. Value is about the buyers. Not last weeks sales. Never before have we seen the reality of this more than we do in a market like we are currently in. The ‘real’ influencing factors on value, is the following;
• How much competition between buyers is there and can that be influenced?
• How much competition between sellers is there? Can how people see your property be influenced?
• Does the salesperson have the access to the buyers and are they working with them?
• Does the salesperson work in a team?
This is very important as good teams share their buyer information.
• Can the salesperson create attraction, desirability and be engaging for the buyers on your behalf?
• Do you have a current and up to date reference of that is happening ‘right now’ in the market?
A truly professional salesperson can actually influence your price. They can not only engage the buyers and build a trusting working relationship with them, but they can lead a buyer through their decision. Salespeople who are influential with price on your behalf are personable and most importantly, they are present! They don’t sit back and do things online or by email. No salesperson gets the best price by not being face to face with you the client, and your customer. This is a relationship person-to-person transaction that is loaded with emotion and requires trust. ‘Going digital’ does none of that.
Getting the right value for your property is not done by wild predictions from past sales by a salesperson who is trying to induce you into listing with them. Getting the right value for your property is about finding the quintessential ‘salesperson’! Someone who builds trust and relationships and who is constantly in communication with you the old-fashioned way - the phone, and with frequent face to face meetings. If they prefer to be behind a computer and not jumping in the car to come see you, then be sure, that the ‘best price’ can only ever be predicted, but never achieved.
For a ‘real’ salesperson that has good old fashioned salesperson skills - always employ a professional. The clue is in our name. Professionals! We get you sold. We understand this market and how to navigate getting you moved. Call us and get the true value for your property.