The importance of pricing correctly
Rightmove released data earlier this month demonstrating if a property is priced correctly, it finds a buyer within an average of 21 days. This rises to 47 days however if the initial price was too high and has to be reduced.
Anyone participating in the property market right now is price sensitive and if you’re a seller or landlord, our advice is to be brave and price correctly.
The market has shown itself to be strong enough to create sealed bid situations if the price or demand for the property warrants it.
Where the price is too high, many buyers are choosing not to even engage.
For example, we were considering a large family house in Hampstead for a hedge fund client of ours, but the seller was so ambiguous about what price he would even entertain, we concluded the seller wasn’t committed enough and our client didn’t want to do business with him.
Instead, we focused on an alternative house which we agreed quickly and cleanly for a competitive price to a genuinely motivated seller. We are due to exchange next week.
We cannot emphasise enough the importance of good behaviour and mindful psychology during a property search and transaction, regardless of which side of the buying or renting fence you sit on.
This does not mean being meek and mild – quite the opposite – but it must be wrapped up with impeccable manners, reliability and a degree of carefully managed transparency, as this is crucial for accessing the best properties and persuading a seller or landlord to willingly accept a lower price than they otherwise would.