5 Rules to getting the best price
We all want the best price when it comes to selling or renting our properties. But how do we do it? We are not talking about achieving a price above others, but instead, a price that that the unit is worthy of, and not being short-changed. There are 5 RULES to observe in order to obtain the best possible price.
Rule Number 1: Good Up-keeping
Making a choice to stay in one place involves many emotions before leading to this decision. Other than good locality, the place has to be aesthetically pleasing too. Poor up-keeping revealing defects leads to uncomfortable feelings, let alone getting a good offer. Tenants also use this to judge if the landlord is a good or bad one.
Rule Number 2: Exclusive Salesperson
Contrary to the belief that more salesperson working on your unit means faster transaction and better pricing, it is actually one of the most common reasons resulting in the unit transacted at a lower price compared to others. Salespersons are all self-employed. Hence in the heat of competing with each other to clinch the deal, everyone will try to advertise lower and more ‘negotiable’ to attract enquiries. Too many salesperson having the same listing will also give prospects the idea that owner is desperate to sell/rent, hence leading to them asking for more discount.
Rule Number 3: Full Commission
Commission is the main life-blood for salespersons to market your property more aggressively. A $55/day newspaper display advertisement, a $40/day 3 liner advertisements, a $0.30/day internet portal posting, or a $0.03 SMS, are pretty much decided by how much financial empowerment you have given him. Best is when he can do all these marketing methods.
Rule Number 4: Know your competition
Competition is what determines your closing price most of the time. It exist within the same block, development, and area. These are called substitutes or alternatives. This is what gives the dilemma of choosing a smaller unit in central area or a larger unit outside town area. This is what determines whether its worthwhile to pay a bit more for a higher floor unit or settling for a lower floor thats has better economy. The best person to advise on this is none other than your real estate salesperson. Being in the front line, we have much more tools to have real time information and direct feel of the market. Our judgement are free from emotions that might affects the decision quality.
Rule Number 5: Control the Greed
Greed is the biggest enemy to any investments or decisions that involves money. In stock market, greed can causes us to miss selling at the high price. It is likewise when it comes to property sale or rental that greed can cause much regrets. Sometimes when the first offer hits the asking price or certain good price, sellers or landlords increase their ‘closing price’, thinking they can get more. From my decade experiences, they often end up closing with a much lower price. Sometimes, the first offer is the best offer.
So next time, look for one right person for the job instead. Look for us!