|

Top three tips for a successful valuation - Part 2

RAT (Rawlings Agency Tip) 154. The best thing you can ask a seller during an appraisal.

In this second of my top three tips for a successful valuation (you can see the first one HERE) I’ll be looking at the ONE THING you can ask a seller that guarantees your suggested asking price will not be a shock.

Firstly, let’s look at what currently happens. In an ideal world, during a marketing proposal meeting, it would be helpful to know how much the seller has in mind for their property. But if you were to ask them directly, you’d possibly get a response such as “You’re supposed to be the expert, so you tell me”, or “I’ll show you mine if you show me yours!”

So we end up, using our skill, expertise and professional judgement, determining a suitable asking price based on our experience and market knowledge. We then put this to the seller in the hope that they will agree with our valuation. In our heart we want to value realistically so that the property sells readily, but we worry that the seller will be disappointed and we may not get the instruction.

So our brain, like the snake in the Garden of Eden, tempts us to go in a bit higher to impress the seller enough to get the instruction. Job done? Maybe, but then the property doesn’t sell and either sits on the market for ages or - worse case scenario - it goes to another agent at the “correct” price (which, by then, may well have fallen because the property has gone stale on the market). Not good for you; not good for the seller.

So how do we get around this? Here are two ways that a number of my clients have found to be hugely effective:

  • When the seller initially phones in to arrange for you to come and pitch, say to them, as part of your preparation for the meeting, “We’ll bring details of other properties similar to yours with us - what sort of price range should we research?” This is non-threatening and the chances are that their bottom figure will be the lowest they might consider and the highest is what they might hope for with the wind behind them. (This question is easy to ask when it is a third party such as a receptionist taking the call, not the actual lister, who might be expected to have an idea of value in that particular street.)
  • On the instruction itself, before even looking round the house, ask the seller, “Do you know what your Zoopla valuation is?”:
     
    • If they say yes, notice how they say it? Eg “Zoopla said our house is only worth £325,000” or “We were really impressed that Zoopla thinks our house is worth £325,000.” In reality, you can tell a lot about how the seller regards the valuation by listening to their tone of voice and watching their eyebrows.
    • If they say no, they are not aware of their Zoopla valuation, then say “Online valuations can be highly inaccurate, but buyers do take an interest in them, so I pulled your “valuation” off Zoopla just before I came here and, as you can see, it suggests your house is worth £325,000. What are your thoughts about that?" Again, analyse their response and it should give you a good indication of their thoughts.

You can then go on to look at their property with this figure in mind. It shouldn’t actually affect your professional opinion of suggested asking price, but it should certainly make it easier to decide how best you might encourage the seller to quote the most appropriate asking price from the outset.

Of course, this is just one element of how to persuade the seller to quote the right price, whilst also gaining the instruction. There are many more. Why not engage me for a one-day shot in the arm for your listers? Worth a chat? Please feel free to call me on 07415 127 446.