At WIN, we recently experienced a rarity, selling 22 Wanda St Mulgrave twice in the space of just 16 months. This makes for a very interesting case study, especially when it comes to setting your selling price for a successful campaign.
The case study
It’s important to first understand that the market conditions were remarkably similar each time the property sold. The sale in June 2018 came at the beginning of a period of declining prices, whereas the recent October 2019 sale saw prices starting to recover from a slump.
The results achieved in each campaign were as follows:
June 2018 SOLD price: $1,168,000
October 2019 SOLD price: $1,122,600
Setting the price
When it came time for the owner to set their price for their October 2019 campaign, it was understandable they wanted to recover the expenses they incurred when they first bought it. Things like stamp duty, agent’s fee and marketing costs.
As such, the owner’s felt they needed to price the property rather aggressively, at the $1,000,000-$1,100,000 mark. Conversely, the original sale in June 2018 had a price point of $900,000-$990,000.
What follows are the attendance numbers from each sales campaign. You can clearly see how the two different price quotes stacked up against the number of buyers attending the opens.
|June 2018 (Priced $900K-$990K)||Oct 2019 (Priced $1-1.1 million)|
|Open attendees at 1st inspection||91||60|
|Open attendees at 2nd inspection||24||10|
In any campaign, these attendance numbers are impressive, indicating the property itself is very attractive to buyers. But the lesson to learn from them is that quoting a higher price reduces the number of buyers attending the first open. This in turn impacts the numbers attending the second open and finally, the numbers attending the auction. In this case, the low level of attendance at auction impacted the amount of competition on the day, and resulted in a lower sale price.
The take away
We know it’s tempting to quote a higher price for your property in the hopes it will achieve a better sales price. But in our experience, this doesn’t always lead to such an outcome.
While no one can truly predict how much a property will sell for, if you set your price competitively from the get-go, at least you can feel secure in the knowledge that you gave your campaign the very best chance of success.
If you’re thinking about selling and would like to find out more about what the right price point is for your home, please connect with one of our friendly sales consultants. We’d love to help.