Pricing, a key ingredient

The Importance of Pricing in Property Sales

Pricing stands as one of the key ingredients in garnering attention for a property, rivalled only by marketing and process in its ability to attract potential buyers. As I peruse the main property portals, I’m often struck by the varied pricing matrices employed by agents, which can be quite perplexing.

Let me elucidate. The portals themselves are the experts in pricing, possessing all the data feeds necessary to understand why certain properties attract attention while others do not. These portals often utilise something called price points, restricting potential buyers from freely entering their desired price range during searches. Thus, it’s puzzling to see agents deviate from the prescribed pricing structure, potentially relegating their clients’ listings to lower visibility on the property pages.

For instance, if a property is listed at £375,000 and fails to generate sufficient activity, lowering the price to £360,000 or £355,000 may seem logical. However, this could inadvertently push the listing further down the property pages, as the correct price point from £375,000 might be £350,000. The industry recognises that marginal differences in pricing can significantly impact listing visibility, highlighting the importance of meticulous attention to detail.

When it comes to pricing, thorough discussion and consideration should precede listing a property or signing an agency contract. Various pricing structures and strategies exist within the industry, some of which include:

1. Asking Price:

Historically attributed to properties, the asking price is a familiar term. However, it’s often met with skepticism, as buyers seldom pay it in full. Negotiation becomes challenging, and while effective negotiation tactics may justify the asking price, it’s a battle best avoided.

2. Offers in Excess of (OIEO):

This approach, indicating that offers must exceed a certain amount, tends to have minimal impact on potential buyers. Many buyers are unaware of its significance and will still aim to negotiate below the stated threshold, making it less effective in practice.

3. Guide Price:

Considered the most effective strategy in my experience, the guide price offers flexibility by providing a single figure labeled “guide.” This fluid concept allows for offers both above and below the stated price, resulting in exceptional outcomes when combined with meticulous research and strategic marketing.

While numerous other pricing strategies exist, these are the predominant ones in British tradition and my personal experience. Effective pricing, coupled with strategic marketing and a streamlined process, can yield remarkable results in property sales.

If you find yourself puzzled by the lack of activity or offers on your property, I invite you to reach out for a confidential consultation. My team and I would be delighted to explore the factors influencing your property sale and devise a tailored strategy to maximise its potential.

Feel free to contact me via email or directly by phone. Your satisfaction and success in the property market are our utmost priorities.