I’ve recently seen a little ‘trick’ being used by some estate agents that I wanted to make you aware of. I’ll also show you why I don’t think these marketing strategies are best-serving the buyers or sellers out there.
It came to my attention as I was searching for a recent ‘buy-to-let deal of the week’ (as featured in my weekly newsletter; contact me if you’d like to receive it). It was a decent property and had just been reduced by £25,000, which was a significant drop from £325,000. The problem was that it had been reduced just five days after first being listed, so what appeared to be a reduction and a ‘discount’ really wasn’t.
Sure enough, a little research showed that similar properties nearby had sold for around £285,000-£300,000; so the new ‘reduced’ price was simply the correct price it should have been marketed for from day one.
I see two problems with this. The first is that it’s a little mis-leading, and an unwary buyer may see the reduction and think they’re getting a good deal. This could be solidified by the estate agent saying how “it’s just been reduced by £25,000, so it really is a good deal now and I’d expect it to sell quickly at the full asking price”.The second problem is for the seller, as when a more clued-up buyer sees such a price drop they may conclude that the seller is keen to sell and will offer accordingly (i.e. low), particularly if it’s vacant like this one was. They’ll also miss out on the ripest part of marketing, which is when a property is new to the market and pinging into peoples’ inbox via their e-mail alerts. If it’s overpriced from the start these buyers will disregard it for being too expensive, and when they see it’s been reduced so quickly they’ll wonder what’s wrong with it.
So, whilst you could argue that it’s an estate agent’s job to do whatever’s required to get the best price for their client (the seller); I suspect tactics such as these simply aren’t effective. They’ll put off the better buyers and will lead to a higher rate of ‘buyer remorse’ from anyone who feels duped, leading to more sales falling through and fewer happy customers as a result.
It is also why you should do your research before you buy. If you’re investing in a buy-to-let property, feel free to give me a call and I’ll give you an honest opinion on its true value and rental potential.
For more tips about buying, selling, letting and renting in Chichester, please visit www.chipropertynews.co.uk
Clive Janes, CRJ Lettings.
If you are looking for an agent that is well established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.
E-mail me on clive@crjlettings.co.uk or call 01243 624 599.
Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:
c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP
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