Buyers, and sometimes sellers, often remark that they dislike no-price marketing.
So why do we use (and love!) it?
Because it works.
At Red Fox, we know that two people can look at the same property and see different values depending upon:
a) how much they love it
b) the extent to which it meets their needs; and
c) what they can afford.
Buyers work out what they think a property is worth all the time, it’s just that when there’s a price guide, they’ve got something to benchmark their opinion against.
Trying to guess the price a property will sell for is like playing pin the tail on the donkey – anyone that’s honest will admit that they’ve got no idea where it might land.
No-price marketing removes the risk of losing early interest from hot buyers from overpricing. Or underselling.
If a buyer thinks an advertised price is too expensive they normally won’t make an offer, not even a low one.
That leaves you as a seller with no clear idea of where the market sees value.
Your initial buyer interest evaporates, your agent will recommend you adjust the price, you quickly end up in the discount game of death by a thousand price cuts, your property becomes stale, and you end up underselling.
And yet we see it time and time again. Because sellers fall for the trap of believing the hope price an agent promised them.
An Agent’s job is simple – find the best buyer for a property.
A good agent will go through the pros and cons of different sales strategies. If they think that a no-price marketing approach, be that Expressions of Interest or Auction, is going to get the best result, that’s what they should recommend. But they should be able to support that recommendation with great evidence and case studies too.
If you’re a buyer who is interested in buying a property that’s being marketed without a price and looking for guidance, simply ask the agent for recent comparable sales evidence – it’s that easy.
At Red Fox, we offer surrounding sales evidence for all our no-price marketing campaigns. In fact, if you email us with an enquiry on one of our Expression of Interest properties, you’ll get a reply with a list of them.
If you’re a seller, in a changing market like the one we’re in now, no-price marketing can be even more effective in reducing your length of time to sell and getting a premium result.
What’s critical is that the agent you’re using is experienced in the process of managing no-price marketing strategies (it’s not one for slack agents!) and explains to you how they’re going to do it.
The quality of your result will be a direct reflection of the quality of the process.
In the right hands, no-price marketing works and buyers and sellers shouldn’t be wary of it.
As a buyer, you decide how much you’ll pay and whether to make an offer or not. As a seller what you accept or not is up to you.
You’re in control. Enjoy the ride!