How Self-Employed Estate Agents Can Achieve Above Market Value On Any Property

A market appraisal isn’t just about telling the owner what the house is worth. It’s about understanding that the market value, asking price, and eventual sale price are all different things!

Pricing a house correctly is all about strategy. When you’re a self-employed estate agent, you should be working with your seller to come up with the best selling approach for them and the property.

In this article, we’ll explain how self-employed estate agents can achieve above market value on any property with our expert strategy.

How to Achieve Above Market Value

Coming up with a pricing strategy should be a collaborative effort between you and the seller.

But first, you need to do your research to establish market value1 and here’s the most effective way to do that in three steps.

1.Search the market archive to learn how many similar properties have sold recently and for what price.

2. Work out the average price per square foot of properties sold in the area. Times the square?footage of the?subject property with the average price per sq ft to give an indication of market value.

?

3. Work out?how much prices in the area have increased since the owners purchased the property. For example, if the owner paid ￡500,000 and prices have increased by 50%, this would indicate the market value is in the region of ￡750,000.?Remember to allow for?improvements done to the property.

To find out how much properties prices have increased in a certain location use The Land?Registry or the Nationwide Price Index - House Price Calculator

When you speak with the seller, show them your research. Tell them about the similar properties that have sold and how much they sold for.

This is a great opportunity to impress the seller with the research you’ve done, so don’t scrimp on the details.

But don’t propose an asking price just yet.

Once you’ve shown off your market research, ask the seller what pricing strategy they’d like to take.

Ask the seller if they’d like to either:

·???????List above market value and aim to take an offer below it

·???????List at market value and aim to achieve that price

·???????List below market value with an ‘offers over’ prefix and sell above market value

Each strategy has its benefits, so make sure you explain the pros and cons.

Explained correctly, the seller will agree the best strategy is to set an asking price below market value with an ‘offers over’ prefix - and here’s why.

It attracts more buyers, removes the limit on the offers you get. It creates competition between buyers which will result in higher offers and a sale over the asking price.

But remember, it’s your job to generate interest and competition[1] in the first place, so you’ll need to market the property effectively from start to finish.

Summary

To sell any property above market value, always do your research first and then discuss the pricing strategy jointly with the seller.

Remember, never just tell the seller what the market value is. As a self-employed estate agent, you provide a personalised service, so you want to show them your worth and bring the seller on the journey with you to decide the asking price.

Always show off your research, explain their options, and ask them what they want to do. If you think a particular strategy will work for them, you are the expert, so tell them your views and convince them why it’s the right choice.

To learn more about how to become a self-employed estate agent , get in touch with Newman Property Experts today.

Already a self-employed estate agent? Explore our expert guides on how to be the best estate agent in town.

1 Suggested hyperlink to “The One Thing Self-Employed Estate Agents Can Do to Generate Market Appraisals” article

1 Suggested hyperlink to ‘Establishing Market Value’ article (to be written in July!