By Brad Evans
When thinking of selling your home there are many factors to consider. Do you sell it yourself? Do you agree to use a Real Estate Agent? If so, which Agent do you use? Do you use a friend? An Acquaintance? Do you use someone who you have never met but has been calling you on the phone regularly? Do you feel obligated to use someone who has given you trivial gifts looking for your business and asking for referrals? Which approach to selling does an Agent use? Do you agree with that approach? Are you confident it will bring your highest price for your home? All of these, and many more, questions need to be asked of yourself when considering how to go forward with the sale of your home.
What is the right approach for you?
The only person that can answer this question is you! I am going to give you some insight into two different approaches and how I have chosen to go about conducting myself as a Real Estate Consultant. One thing to remember when beginning the process of selling your home is that “Every dollar counts”! With this being said, keep in mind that it is a “business” transaction and not a “personal” transaction. Your friend, cousin, neighbor, or person who has been bringing you condiments because they “relish” your business must understand that the agent you signed on with best fits your desires and approach to selling your home. You want an agent that fits your ideals not only as an agent, but as a person in general.
Price is what you Pay, Value is what you Get! Promote the Value!
Selling a home can be either through a Price-Driven Approach or a Value-Driven Approach. The Price-Driven Approach is a more commonly used method to selling a home. In this approach the house is treated as a Product with a set Price that is created and dictated by your neighbors. “Why must MY home be priced similar to the house down the street?” you may ask yourself. This is a fixed-price approach to selling a home. This is an outdated and inferior approach to selling a home in modern day society. In the Value-Driven Approach, you accentuate the VALUE not the Price of a home. If you market a home to hit the emotional triggers with perspective buyers, they will make a better offer.
Selling the Dream!
Owning a home on the Central Coast is a Dream to many. Over 70% of the homes purchased in the area are from buyers outside the Central Coast. Having a systematic approach that accentuates all the VALUE a home has to offer will bring a higher price to the seller. The Value of a home is not just the physical aspects and any upgrades it may have, but also the geographic location, the culture of the surroundings, and all aspects that make San Luis Obispo County such a desirable location. This is called “Story-selling”. Telling the story of the home and all that can be had by a “life” when owning a particular home can create an emotional response within prospective buyers. This is superior to a method of treating a home like just a product with a fixed price.
Transactions versus Price Per Square Feet
The Value-Driven approach can generate more Price Per Square feet than the Price-Driven Approach. Often times an agent may promote the number of transactions they have done as a rationale for being chosen to represent a seller. If you have an agent that sells 30 homes a year and has an average price per square foot of $280 or an agent that sells 20 homes a year yet has an average price per square feet of $320 which agent do you want representing you? The number of transactions doesn’t matter as you are only concerned with ONE transaction, YOURS!
Which do you choose?
I use the Value-Driven Approach to Selling homes. It creates a larger selling price for a home over a Price-Driven Method. As stated in the beginning, “Every dollar counts”! When dealing with a home price of several hundreds of thousands of dollars it is often easy to not consider even a few thousand dollars. However, I like to put that money into perspective. A few thousand dollars could be a Hawaiian vacation. Or it could be a new car for one of your children. Or it could go towards a child’s college education. For this reason, I believe every dollar counts. Just as the decision as to the Agent and the Approach to selling counts.
If you are considering selling your home, please consider me and the Value-Driven Approach. Together we can get the highest selling price for your property.