When you’re thinking of selling, you may hear agents use the term ‘emotional price’. The emotional price is the price every seller should be hunting for and where all of the agents’ strategies should be revolving around. This is the price that surpasses market value, this is the price that sets records. It changes buyers’ mindset from how much I’m going to pay to how much I’m willing to pay.
If you’re selling and interviewing agents, when you’re discussing price and marketing strategies, an agent should be guiding you through the best strategy that is unique to your property to get the best out of the current target market for your property. As every property differs one way to another, each property should have a different strategy to get the best price.
By creating a competitiveness in your property and pushing buyers against each other, you trigger different emotions in buyers that have the possibilities to push prices beyond levels you would ever imagine. Whether your method of sale is auction, private treaty or expressions of interest, through competitive bidding between multiple buyers is the first step to securing a stellar price. If you’ve been guided well and presented your property at it’s best, priced it competitively and attracted a strong number of buyers to your open home, then you have got a big part of the mix right.
When buyers are in a property together they can generate interest against each other. Here are the basics of how humans behave. We always want what everyone else wants, basically we’re geared to win. Interest broods interest, so if many people want something, you think you need to have it too. The first emotion that an interested buyer is overcome with is love, they walk in and fall in love with everything. If you have multiple buyers walking around smiling and showing interest, you’ll see the second emotion kick in very quickly. This emotion is the ‘money emotion’ and it is the fear of loss. This where the emotional price lays.
To secure an emotional price, you need to have both emotions work in conjunction with each other. People can easily fall in love with your property, but unless you have other buyers keeping a high level of pressure on interested parties to perform, then you will not engage the ‘fear of loss’ emotion. A buyer wants to get the property for the best price they can get it for, which means they are against giving you more than they must. Unfortunately, as an agent, we aren’t the most believable people in the world. So, unless a buyer is physically forced to be under pressure, there is a strong likelihood that they will not give very high offers if they are purely working from an agent’s advice that there is other interest.
If you want to get the best price for your property, then you will need to find the agent who has the best strategy to put as much pressure on your potential buyers to perform at the highest level. In the years I’ve been in this industry, I will never leave anything to chance as I’ve seen people pay a lot of money for properties that are well beyond market value. An agent who understand human behaviour is not a bad person to have on your side.