Is your property pitch missing the mark? Make the most of your sales price by scoping out your buyers using these techniques.
Understanding your market can lead to an increase in your selling price. Potential buyers want to see a lifestyle reflected in a potential home which they connect to, and the right connection can get them emotionally hooked.
Have you encountered any of these problems?
- Not many buyers enquiring or coming through for inspections.
- Potential buyers not seeing the value in the property.
- Sale price is significantly lower than expected.
You could be selling a great property aimed at the wrong market.
Whether you’re selling your home or renovating for profit, understanding your buyers will help you tailor your pitch to attract the right audience and could help maximise the sale price of the property.
The basic principles of staging to your market
There are a few basic principles you need to start with, from the location and its demographics, to your property and its major features.
Location, location … location
Your suburb will offer a few clues as to the kind of people who would be attracted to the area. A beachside suburb will attract a different kind of buyer compared with a suburb close to bushland, for example.
Emphasising this feature could be a key drawcard.
While location will hook many buyers in, it’s the nearby amenities that will play a big role as to whether buyers decide to take a closer look.
Proximity to shopping centres, transport, schools, universities and medical facilities will attract and repel different people. Buyers without a car will appreciate a shopping centre and access to transport within walking distance, whereas others may find the location too busy.
Young families may be after a property near parks and schools, whereas an older couple may appreciate quieter areas, for example.
The existing demographics of the neighbourhood will also give you an idea of who is likely to be attracted to the area. Who currently lives in the community? Retirees, couples (DINKs – double income no kids), singles, students, migrants?
Looking at the main population may also give you an indication of the kind of support local councils give, such as school holiday activities or youth drop-in centres in an area with a lot of families with school-aged children, or excursions for seniors in an area with an ageing population.
Also be aware of any trends. If the suburb has plenty of elderly residents, for example, it may be attractive to young families looking for a property in an established neighbourhood as the older generation move on. Gentrification of industrial areas is also common with investors and share house tenants willing to be the pioneers of warehouse conversions.
Read more: Know your suburb when selling your house
The property on offer
Lastly, the features of the property itself will be the last filter buyers use to figure out whether it’s worth attending an inspection. A garage or off-street parking could be a magnet for car owners but a turn-off for others. Big backyard? A great place for kids to play or a hassle to maintain.
Find out the wants and needs of most of the buyers looking in your marketplace and what expectations they have for similar or comparable properties. Also get an idea of what they are willing to spend in the area by looking at recent sales.
If you renovate for profit, it’s worth understanding likely buyers before you make key decisions about what to upgrade and invest in. It’s easy to over-capitalise if you don’t know your market; for example, fittings and fixtures are not of prime importance in lower socio-economic areas.
Once you’ve identified likely buyers, use this information to market your property. Don’t be too specific; try to include as many suitable buyers for that area as possible by making sure your home and staging appeals to the majority of the marketplace. If you can attract suitable buyers for a number of different reasons without polarising anyone, you’re well on your way to presenting your property in the best possible way.
- Use real estate & homes websites
Websites such as realestate.com.au and Pinterest to find inspiration. Look at properties in the sold property section or to look at comparable properties and see how they’re marketing themselves and what price they’re being offered for.
- Talk to local real estate agents
Real estate agents know how to sell a property. It’s their job. They know what to highlight in a property for a certain neighbourhood and they can give you information on what’s been selling in the area and to what kind of buyer.
- Visit open homes
Going to OFIs in your area will allow you to experience a ‘pitch’ for yourself. Also look at the buyers that are attending the open homes and listen to what they’re saying about them.
Read more: How to tell if a suburb is right for you