Price has always been the #1 factor to consider for any property purchase.
Price is about budget, it’s about affordability.
Other than Price of property, what could possibly be the second factor that influences most buyers’ decisions?
We think it’s “Value”
Firstly, Price is NOT the same as Value
Price is a number placed on the subject, and that’s an identifiable trait which is displayed large and clear for everyone to know.
Value is a bit harder to grasp.
For some buyers, it could be the fact that they can wake up later to go to school or work, because of close proximity, which is considered “valuable” for them.
For some, it could also be the “Dollars Per Square Foot” as compared with other similar units, which shows the pricing in one unit as compared to others, primarily from an investment point of view.
It is important, as Property Agents, to learn and identify the value which potential viewers are looking out for. It takes a sharp salesperson to correctly identify in the shortest time: “what the potential buyer is looking for”.
For most, the solution is to ask, and you’d be surprised how many property agents either never asked or ask key questions at inappropriate moments. But why would or should the potential buyer tell you the truth? Especially if you are representing the property seller (the other side)?
Through a series of steps and evaluation, one can potentially identify the Value which the buyer is looking for. For e.g. learning about the source of the first enquiry would be useful in identifying where the buyer is staying (flyers could indicate they stay nearby or have relatives who stay nearby). Email lists could indicate they were referred by a past client.
Taking special note of viewers’ attire, age and background conversations are all helpful in forming a better picture of their profiles.
Basic (non-intrusive) questions
Basic questions such as whether the size and layout is suitable for them can help to determine number of persons in the household. “Can the dining table fit into this area? (pointing to dining area)” This can help in learning about size of family as well. And if there are children in the family, are they currently going to schools nearby?
The more we learn about and understand our customers, the better. It helps to determine whether the property is truly suitable for them, and if not, whether there is any way the foreseeable mismatch can be mitigated.
Main resistance (and excuse) for any purchase is always going to be Price, but being ready and prepared with Value Propositions can help greatly in breaking down the price resistance by allowing the potential buyers to become more aligned with the property and understand how the listed Price is a fair number, and offer some assurance that it’s safe and a good decision to purchase this property.