At Kardinia Property, we offer The Smartre Sale Method – a proven approach designed to achieve the highest price while always focusing on the interests of our sellers. But what is it, and why is it the most effective way to maximise the selling price of your property?
In this blog, Jackson and Sara, co-founders and directors of Kardinia Property, answer key questions to help you understand everything you need to know about this sales method. If you’re considering selling your property, get ready to discover why the SmartRE Method could be the best approach for you.
Question #1: What is the Smartre Sale Method?
Jackson: “Smartre Sale” is the sales approach that Kardinia Property uses to sell property effectively and ethically.
Sara: Sometimes people assume that “Smartre” is spelled incorrectly when, in fact, it is a play on words. “Smart RealEstate.” It is a proven approach that is being implemented across Australia with great success!
Question #2: What actually is the Smart Sale Method?
Jackson: The Smart Sale Method is an effective and ethical sales strategy, which always has the seller’s interest as its primary focus. It allows the seller to obtain the best price by using proven marketing and negotiation techniques drawn from various fields and integrated into real estate. It is really the best of the best, a bit like Top Gun.
Sara: It includes various different components, and all of these components need to work in unison for it to be most effective.
Question #3: When people are selling their homes, there are different methods of sale. Why is the Smarter Sale recommended?
Sara: There are various methods for selling homes, often centered around pricing strategies. The key difference lies in whether the pricing strategy includes a single stated asking price or a price range. Pricing strategies can generally be categorised into two groups: those without a specific price and those with one. Auctions and tenders or expressions of interest fall into the category without a specific price. While there might be a price range or a general guide, there is no exact price specified, which can lead to confusion. The Smarter Sale method promotes having a single stated asking price as opposed to a price expressed as a range.
What we have found is that this approach yields success in any market, especially when it becomes challenging. Some methods are only good in a booming market, while others are less effective during such times. The Smarter Sale method is the best method to extract the highest price when there are multiple buyers, and the only method that works to extract the highest price when there is only one buyer.
Jackson: The Smarter Sale method integrates multiple facets that work together in unison. Sara has mentioned the importance of the single stated asking price, which is one component. However, it’s essential to be mindful that success relies on the synergy of all these elements. Engaging a highly trained and skilled agent who can effectively execute this integrated approach is really important.
Question #4: Why is a clearly stated asking price more important in the Smarter Sale?
Sara: Let’s consider a hypothetical scenario. Imagine you’re in the market to buy a property right now, and you come across a listing with a price range of $600,000 to $650,000. What offer would you be inclined to make? Most likely, you’d offer less than $600,000, perhaps exactly $600,000, which is the lower end of the range. Now, if you were the seller, would you want to use a pricing strategy that encourages buyers to offer lower? Most sellers aim to get the highest possible price for their property, so they’d be hoping for $650,000. Therefore, why not simply put the price you genuinely want on the property? Simplicity is the key when pricing using the Smarter Sale method.
Many people tend to overcomplicate real estate strategies and practices when, in reality, it doesn’t need to be complicated. Price ranges are often promoted under the belief that they encourage competition, which is indeed true. Competition can lead to a higher selling price. However, the problem with generating competition through a price range is that it sets the expectation for buyers to aim low, and conversely, sellers to aim high.
If a buyer walks in and says “We’re happy to offer $600,000”, and the agent says “Don’t be silly, no way, they’ll never take that”, it can understandably frustrate the buyer. One of the fundamental principles of marketing is to make your product easy to buy. When you’ve got a buyer walking in offering a price that the product is advertised for, and the agent laughs in their face, that’s not making it easy. The pricing component of the Smarter Sale method simplifies the buying process for the purchaser and ensures transparency to attract the best possible price.
Jackson: It’s a more straightforward and transparent way of selling. In most other industries, you don’t walk into a store and see a product marked as “between $10 or $13 or somewhere in between.” The price is clear and straightforward; it’s pretty simple.
Question #5: When selling a property, why is selecting the right agent so important?
Jackson: It’s twofold. You have to choose the right agent, but you also need to select the right agency. The right agency is one that prioritises achieving the highest price for your property. It’s not necessarily the one with the most sold signs in the area. Having the right agent in the wrong agency can be detrimental because the selling strategy employed can have a significant impact, especially with an inexperienced agent. You need the right agent who is confident, well-trained, and has your best interests at heart, within an agency that shares the same values.
Vendors should consider two levels of trust when selecting an agent. The first is cognitive trust, which relates to the professionalism, knowledge, and skills of your agent. The second is affective trust, which involves choosing an agent who is relatable, a good person, and someone you have faith will prioritise your interests.
Sara: When you apply for a job, you often provide references. Similarly, when you’re interviewing an agent to handle your real estate needs, it’s a good idea to check their references. One effective approach is to knock on the doors of a few houses they’ve sold, as these homeowners have gone through the entire process and can provide valuable insights. Another way is to review their sales results.
Question #6: What makes Kardinia Property stand out?
Sara: What sets Kardinia Property apart is our commitment to delivering exceptional end sale results and our genuine approach. Many agents may claim “Yeah, we’re great, we’ll get you a great result”, but our way to ensure we can do what we say we are going to is through continuous training in negotiation techniques and always prioritising what’s best for the seller. Our focus isn’t on collecting the most “sold” stickers on signs; instead, the Smartre Sale method is entirely geared towards maximising the final result for the seller. After all, when the seller pays the agent’s fee, they expect real value for their money.
Question #7: Tell me a bit more about that, what’s the difference between the method of sale and negotiation?
Jackson: Our negotiation strategy is based on four key factors or quadrants. Firstly, there’s detachment from the outcome, which is essential because it allows us to approach the situation objectively and follow the sales process with the lens of best practices, rather than being driven solely by commission-based motivations.
The second quadrant is knowledge. In a sales situation, this means engaging in conversations with buyers to understand their backgrounds, motivations, and circumstances. The more knowledge we have, the better the outcome we can construct in the negotiation.
This leads to the third quadrant: relationship. Building strong relationships with buyers, based on genuine interactions and goodwill, enhances the negotiation process. When buyers and agents establish good relationships, it reduces risks for the seller.
Establishing a positive agent-buyer relationship ties into the final quadrant, which is risk management. With an agent who is detached, knowledgeable, and fosters good relationships, the overall risk for the seller decreases. An agent who embodies these qualities can create scenarios that maximise the seller’s benefits. This doesn’t mean manipulating a buyer to do something that is beyond their reach, but it does mean that we are very much in our seller’s corner.
If buyers want similar negotiation factors working for them, they also have the option of employing a buyer’s agent.
Question #8: How can you build a positive relationship with buyers during negotiations?
Sara: Here’s one of my top tips for negotiation: Make the party you’re negotiating with, in this case, the buyer, feel like you’re on their side. Many buyers may initially be hesitant about dealing with agents, and that’s perfectly okay. The skill of a good agent and smart negotiator lies in developing a relationship with buyers that encourages them to open up and allows you to assist them. The goal is to have the buyer feel that you’re working together with them, helping them rather than working against them. Small changes in language, like “I’m happy to help you try and buy the property,” instead of “Let’s do a deal,” can make a big difference.
Jackson: Language plays an important role, who aren’t skilled in or don’t care about these things let little things go. For instance, consider this sentence when speaking with a buyer, “Do you want to make an offer on this house?” Using the phrase “make an offer” may suggest that the agent expects the buyer to offer less than the listed price. We believe agents should not encourage buyers to offer less, so we avoid using the term “make an offer.” While it may seem like a small thing, in real estate, even minor details can translate to significant amounts, potentially costing buyers thousands of dollars. These things may not be apparent when you’re hiring an agent, but their impact becomes evident during the negotiation process. We use various tools, but our primary strategy revolves around the quadrant strategy to ensure we manufacture the best outcome during negotiations.
Question #9: Considering your emphasis on reducing risk, can you provide any guarantees for the seller?
Sara: Yes, there are certainly guarantees with a highly trained agent. We incorporate safety measures into our strategy that reduce the level of risk when dealing with our agency compared to other agencies. The most significant guarantee is around the marketing costs. A key aspect of the Smart Sale strategy is our ‘no sale, no charge’ policy for sellers.
Jackson: This is especially valuable in the current market, where we’re experiencing higher inventory levels and properties staying on the market for longer periods without selling. Often, sellers are left with a $10,000 marketing bill to pay, regardless of whether their property sells or not. The Smartre Sale features a ‘no sale, no charge’ guarantee, which means we absorb these expenses if the property doesn’t sell. While our business still incurs marketing costs, the seller isn’t burdened with these costs if the property doesn’t sell. You won’t find any other agents in Geelong willing to reach into their own pockets and offer to cover the marketing expenses, with no obligation for the seller to reimburse them. It’s not a guarantee of a sale, but it’s another way we can minimise risk for property owners and maximise the potential outcome.
For deeper insights into the Smart Sale Method, make sure to catch our podcast episode: “Selling Smarter: Kardinia Property’s SmartRE Sale Method explained.” To explore how our integrated SmartRE Sale Method can maximise your results in any market, whether you have one or multiple buyers, get in touch with Sara or Jackson at the Kardinia Property office, on 5292 8084. With Jackson’s 30 years of real estate experience and Sara’s extensive training, they’re committed to helping you achieve your goals in an ethical and effective way. If you are looking for Geelong’s leading female agent Sara Wilson
Kardinia Property, real estate as it should be.