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Having Your Cake

By July 15, 2014 August 6th, 2014 No Comments

download (1)When you look a little bit closer, some expressions we use in everyday life are a bit illogical. Take the one that goes; “you can’t have your cake and eat it too” for example – you actually can have a cake and then eat it.

In fact, it probably makes more sense to say “you can’t eat your cake and keep it”.

Either way, we all understand the intended meaning. You can’t live two opposing realities at once – ergo, once you’ve eaten your cake, you can’t still have it. The cake is gone.

In the property world, we see two opposing realities when a vendor expects a flurry of activity and an instant sale, but also doesn’t have any intention to sell unless the price achieved is sky high. Still anticipating high attendance at regular open homes and multiple offers that fail to happen, these vendors are the same ones who will then say “oh we actually don’t need to sell,” or “we’re not in any hurry”, while holding out for a price that’s well above the market.

Now we’re not saying that vendors should always sell quickly, or that they should always sell at any price. Every individual has their own unique factors at play and designing the best possible marketing campaign and subsequent outcome has to balance all of those concerns. But formulating a realistic asking price is a key ingredient to spark buyer competition and achieve a good sale within a reasonable time frame. If the seller really is fixed on a premium, that requires a different strategy from the agent and a different set of expectations from the vendor.

Over the past six weeks, buyer activity has been the busiest we’ve seen for some time. We’re seeing a high level of offers and acceptance, particularly in mid-range properties. Regardless, having a realistic view on price is critical to achieving those high inspection numbers and multiple offers.

Expecting any other outcome is like wanting to eat and keep the cake – understandable, but just not practical.

All the best

Michael Kirwan