Competitive Sales Processes – the strongest indicators of current market value.

In last week’s commentary, we touched on the importance of treating all buyers with respect – even if their interest level is well below expectation during the early days of your campaign. This week’s headline on the NZ Herald’s OneRoof platform reinforced the point, “Vendors sell bungalow for $1.705m just months after rejecting offer of $2m.”

Momentary rejection turned into lasting regret. As agents, we are mindful that last year’s expectations still permeate the minds of many vendors, but experience tells us that the level revealed through a competitive sales process (i.e., auction) is the strongest indicator of current market value. That is because purchasers engaged in the early days are the most ambitious buyers out there. They have been in the market for a while, know their data, have most likely missed out on a few properties, are under the pressure of a finance pre-approval with an expiry date and so are done being cute. Moreover, their interest is based on having taken the time to study your property specifically with the help of advisors including banks and brokers. Meaning if two or more buyers – completely independent of each other, land in a similar range in value, the top end of it is where the smart money is.

As always, our team is here to help. If you would like to discuss your plans or options moving forward, please get in touch with one of our award-winning team members by phoning 0800 040 600 or visiting our contact page here.

Have a great week.