Get your price with a touch of kitchen sink psy­chol­ogy

You don’t have to be as savvy as Freud to use psy­chol­ogy to your ad­van­tage. Laura Hen­der­son re­veals how mind games and emo­tional in­tel­li­gence help sell a prop­erty.

Yorkshire Post - Property - - PROPERTY -

THE ask­ing price of a prop­erty isn’t just about com­pa­ra­ble val­ues – emo­tional in­tel­li­gence has its part to play too. A savvy buyer, for ex­am­ple, will not only look to pin-point a fair mar­ket value for a place but also to suss out how much room for ma­noeu­vre there is with the seller.

By the same to­ken, “switched on” ven­dors, even when they’ve reached an agree­ment with their agent on their home’s value, are still likely to drop the ask­ing price a lit­tle, and not just to en­tice buy­ers with a bar­gain.

By adopt­ing this ap­proach, they’re tap­ping into sig­nif­i­cant thresh­olds, which oc­cur ev­ery £10,000 or so. These are price brack­ets that would-be in­vestors are most likely to put down as their pre-view­ing ceil­ing price.

Once they see the prop­erty, they make an emo­tional con­nec­tion to it how­ever, chances are they’ll ad­just their ini­tial fig­ure up­wards – a £5,000 in­crease can, for ex­am­ple, be qual­i­fied as a “doable” ad­di­tion in the mort­gage.

So, if your prop­erty is gen­uinely worth £360,000, price it at £350,000 – that way you won’t scare off buy­ers who’ve set £350,000 as their cut-off point; once you’ve reeled them in, they can po­ten­tially be ca­joled into spend­ing a lit­tle more. An al­ter­na­tive strat­egy is to put your home on at £359,000. A neg­li­gi­ble dif­fer­ence, you might think, but the psy­cho­log­i­cal ef­fect of round­ing down the whole num­ber (the 99p ef­fect) can be pro­found, en­cour­ag­ing po­ten­tial buy­ers to still see your house as within their means.

Re­vers­ing this sce­nario and pric­ing your prop­erty one tier higher doesn’t reap the same re­wards. Put it on at £370,000 and to buy­ers qual­i­fied to pur­chase at this price point your home won’t seem like a bar­gain; it will merely seem over­priced. As for those qual­i­fied to pay £360,000 – what it’s ac­tu­ally worth – they’ll dis­miss it as out of their league.

Bot­tom line: When sell­ing, fix a price tag that’s slightly be­low a thresh­old, but close to a prop­erty’s mar­ket value, be­cause ev­ery­body likes room to ne­go­ti­ate

“You can tell a lot about a per­son’s char­ac­ter by his way of eat­ing jelly­beans,” ac­cord­ing to Ron­ald Rea­gan.

Buy­ers come in all shapes and sizes, but that shouldn’t stop you from ap­ply­ing a lit­tle kitchen ta­ble psy­chol­ogy to ease the ne­go­ti­a­tion process. Pin­point­ing in­di­vid­ual “types” can not only boost likely in­ter­est lev­els in your cher­ished home, it can im­prove your chances of con­vert­ing luke­warm browsers into readyand-will­ing buy­ers.

am­bi­tious, fam­ily-ori­en­tated high-fly­ers.

They want a house that re­flects their sta­tus – state-of-the-art kitchens, sump­tu­ous bath­rooms and out­door play ar­eas for the chil­dren. They’ll ap­pre­ci­ate a facts-at-your-fin­ger­tips ap­proach – point out key as­sets, then let your house do the talk­ing.

self-made en­trepreneurs and “cre­ative” busi­ness types. They’re pub­lic spir­ited and so­cia­ble and make great neigh­bours.

They want a place to un­wind, a char­ac­ter­ful home they can feel a con­nec­tion to. They en­joy hu­man in­ter­ac­tion and will re­spond well to a per­sonal ap­proach – a wel­come hand­shake, a freshly­brewed cup of cof­fee. Drop in a few his­tor­i­cal snip­pets about the house and draw their at­ten­tion to any un­usual de­sign fea­tures.

cham­pi­ons of old-school val­ues: heav­ily into fam­ily, and com­mu­nity. They work in bank­ing, law and the pub­lic sec­tor, and like a con­ven­tional way of life.

Tra­di­tional, char­ac­ter­ful prop­er­ties fit the bill. Less dar­ing in their per­son­al­ity type, they re­spond well to sup­port­ive chat and re­as­sur­ance – high­light the se­cu­rity of the neigh­bour­hood, the friendly neigh­bours and the low-main­te­nance gar­den.

young and up­wardly mo­bile on the lower rungs of the prop­erty lad­der, they know what they want and have a game plan to get there. Their ideal home? A new-build town­house or apart­ment in a con­ve­nient ur­ban lo­ca­tion.

Sell them the life­style. Point out sta­tus fea­tures such as wire­less in­ter­net, roof-top gar­den, mood light­ing – if it’s an in­ex­pen­sive home in a de­sir­able neigh­bour­hood you’re sell­ing then you’re on to a win­ner.

school leavers who have gone straight into the world of work.

Their ideal prop­erty is a be­low­mar­ket-value “fixer-up­per” with gar­den, close to a town or city cen­tre. High­light the prop­erty’s fi­nan­cial po­ten­tial and in­ex­pen­sive ways they can add value.

The Bot­tom line is this: Un­der­stand­ing your buyer can mean the dif­fer­ence be­tween a “thanks, but no thanks” and “we’ll take it” – so get the low­down be­fore the view­ing mer­rygo-round be­gins.

PAST AND PRESENT: The Old Vicarage has been lov­ingly re­stored and boasts a host of pe­riod fea­tures. It sits in the shadow of Bev­er­ley Min­ster.

WORDS OF WIS­DOM: “Price is what you pay – value is what you get”ac­cord­ing to bil­ion­aire War­ren Buf­fett

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.