Advice for sellers in a crowded market

Trade Me Property reports the number of properties for sale across NZ jumped a record 76% when compared with August last year, and supply has been higher, year-on-year, each month for nine months. In the first of two columns, we asked the experts for some advice for sellers. Next week they offer their advice for buyers. What can sellers do to make their property stand out in a crowded market? Daniel Coulson, Chief Operating Officer, Ray White New Zealand:

Sellers effectively have two options when looking to differentiate themselves in a crowded market; they are either outpricing or out-promoting their competition. Most owners prefer the second option, so we will focus on that.

While out-promoting a home can mean more advertising - it is also about being creative with that marketing strategy, telling a story as to why the home is being sold and capitalising on an agency’s PR department if that story, or the story of the home itself, is unique. Another way of avoiding having to beat the competition on the price you are asking for your home is by removing price from the equation altogether and marketing your property with a method of sale that allows purchasers to judge the property on its credentials rather than the price tag.

This should be coupled with a deadline of some sort, such as an auction or closing date; otherwise, there will be little incentive for buyers to take action while more property continues to enter the market.

Bryan Thompson, Managing Director, Harcourts New Zealand:

There are some simple answers to this critical question, and it is one which all sellers should discuss with their chosen agent. Firstly, consider the presentation of the property. Is it being presented in its best light? Does the garden need professional input, should existing furniture be removed, either partially or completely and is staging being invested in? These questions can be difficult for owners who love their property and how it looks to them, but when it comes to selling to others, you need to appeal to the best buyers, and not to the current owner.

Once you have the property looking its best and standing out from the crowd, the difference simply comes down to marketing. Budget is critical, and where it is invested is just as important. Select the correct agent and they will explain the options to you. Is it signage, online, print, multimedia or a mix of all? The simple reality is that you must ensure you let the total market know the property is for sale as the key to a superb result is attracting every buyer and not just ‘‘the’’ buyer. There has never been a world record broken without competition, so give yourself the best chance of creating competition as when selling, after all - who wouldn’t enjoy a world record result?

Johnny Sinclair, National Director Residential, Bayleys:

Traditional advertising reaches the active market, but Bayleys’ tools, including our magazine publications and unique digital products, are designed as a touchpoint for passive buyers. By tapping into this broader market, we can generate more competition for our sellers and achieve better results. In addition to a strategic partnership with global property consultancy Knight Frank which offers exposure to international markets, our residential magazine, View, provides a point of difference. Similarly, we focus efforts on the property itself rather than the salesperson or agency, and by leveraging engagement with a unique audience, we deliver greater value through opportunities, which help our sellers’ properties stand out.

Monthly analysis shows around 30% of buyers are based outside a property’s local area, illustrating how important it is to cast the net wide to find the right buyer, not just the first. We know strategic marketing tools like digital carousels, bespoke social media products, and programmatic digital advertising work, and can be the difference between a good and excellent result.

Presentation is also crucial, and sellers can undertake some small tasks for maximum impact. For example, a fresh lick of paint, an exterior clean, and a garden tidy-up can help buyers to envisage their life at the property. Similarly, our salespeople say removing unnecessary furniture/knick-knacks or home staging a bare space can offer a significant upside potential for sellers.

Kiri Barfoot, Director, Barfoot & Thompson:

There are three broad areas where you should focus attention – street appeal, your home’s ambience and local amenities such as schools, easy motorway access and recreational areas – and the key to maximising them is to first appoint an agent that is a local expert, and then listen to the recommendations they make.

A real estate agent that is a local expert will know what most of the potential buyers committed to living in your area are looking for in a property and will be able to give you guidance as to how to add appeal.

For example, some buyers may be attracted to a year-round flowering garden, others might be more interested in minimal ground maintenance; buyers at different stages in their life cycle may want ultra-modern, minimalistic furnishings while others a family friendly home.

Invest in marketing your home through a variety of media and have it professionally staged. By removing ‘‘your’’ personality from the house you enable potential buyers to better envisage themselves living there. Be flexible about giving potential buyers viewing access and be prompt and helpful in responding to requests for information requests through agents.