Pricing your home unwise in current market

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Pricing your home unwise in current market

  October 2009:  People currently putting their homes on the market in New Zealand or Australia with a price tag on them are not doing themselves any favours according to Harcourts International Managing Director Mike Green.  

In the current environment, where buyers are still cautious and “testing” the market due to uncertainty caused by the global financial crisis, homes with a price tag could stay on the market for a lot longer and potentially achieve less than they would if the market determined the price, he says.

“The current real estate market is rapidly changing, very much impacted on by volatile global economic conditions, and the number of properties being listed for sale is lower than usual too so that’s adding another dimension, namely a build-up of demand in some areas,” he says. 

“Given these circumstances it is particularly difficult for real estate sales professionals to give sellers an accurate appraisal as to what price a home might achieve and so marketing with a price may be unwise.”

According to Mr Green, for a number of reasons selling by auction is the best and most effective choice for sellers in today’s market.

“Firstly, auction marketing campaigns mean there is no ceiling put on the price and in the end many sellers are very surprised by what the market is willing to pay for their property at or before auction day.”
In addition auction properties generally sell faster, he says.
“This is due to the increased exposure provided by intensive, high-profile auction marketing programmes which attract a greater number of prospective buyers and also the sense of urgency created by these campaigns and their auction day deadlines. This urgency is not typically felt where a property is marketed with a price with no timeframe within which a buyer needs to act.”

Mr Green says Harcourts has always valued its strong auction culture and achieved good levels of auction success.

“Our strength in this area is recognised by our clients and shown through the results achieved and also by the achievements of our auctioneers in national and international auctioneering competitions.”

“Earlier this year for example, Harcourts auctioneer Andrew Burden won the novice competition at the Real Estate Institute of New Zealand National Real Estate Auctioneers Championship and

more recently Harcourts New Zealand’s National Auction Manager Phil McGoldrick won the 2009 Australasian Real Estate Institutes Auctioneer Championship ahead of another Harcourts auctioneer and 14 other leading auctioneers from around Australia and New Zealand who qualified for the event.”

Harcourts is New Zealand’s largest and Australia’s fastest growing real estate group.  Founded in New Zealand in 1888, the operation expanded into Australia in 1997 and now has a total of more than 600 offices in New Zealand, Australia, South Africa, China, Singapore, Indonesia, Fiji, Zambia and Botswana.

Harcourts is also the exclusive South Pacific member of Leading Real Estate Companies of the World™, the world's largest real estate network with over 5000 offices and 150,000 sales consultants operating in 35 countries.

According to Mr Green four key factors have contributed to Harcourts ongoing success - the strength of the Harcourts brand, superior business and information systems, proven marketing tools and strategies plus incredibly talented, skilled and committed people.

ENDS

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