Sometimes the risk of losing money in a boom market is magnified yet missed by many home sellers.
You will hear many agents talking about the merits and importance of transparency in the sales process. If you are selling your home beware of the transparency trap.
For example: a buyer falls in love with a home, they really want it, a family member has offered to financially contribute, it’s their ideal property, everything about it is perfect. They are highly emotionally attached and do not want to lose it. They are prepared to pay a big price.
Auction day rolls around. Nerves are high. The final meeting happens where our young couple work out what their financial limit is, they increase it $20,000 from the night before.
Bidding starts. $800,000 stepping up to $850,000 where the agent calls “the property is on the market” the sellers reserve price has been met. “Phew” thinks the agent.
The bidding continues to $910,000 where finally… once twice, sold, hamer comes down.
The cameras are rolling, everyone claps, the agent claps themself on the back.
The buyers are ecstatic, they have bought their dream home… and have saved a staggering $120,000!
Now, flip the narrative…
Think how happy you would be as the seller, knowing that the buyers could have kept bidding, but didn’t.
These sellers and many others have become victims of the transparency trap. Beware of an agent who tries to sell the benefit of transparency, it makes you wonder whether they are working for the seller (who pays the fees) or more likely… the quickest avenue to a sale?
The remedy is simple. Use competition to drive the price up, but without transparency, without the best buyer knowing what price the second-best buyer will bid. This makes sense, it’s SMART. Contact us now if this makes common sense to you and you want to sell Smart.
SOLUTION… Get the Gap
Sometimes, there is a big gap between what the best buyer will pay and what the second-best buyer will pay. Hiring a skillful agent with a strategy that recognizes this fact and executes correctly will lead to thousands more dollars in your pocket as a seller. Unfortunately, many agents are transactional based, not gap based, so they will stop seeking the buyer’s highest price once they have reached the seller’s reserve price. Contact us now if you would like us to explain how we will guarantee to “get you the gap”.
Jackson Wilson
Director
Kardinia Property