Positioning refers to how we are priced and marketed compared to our competition and the past sales. In order to do this, the first step is some in depth market research. It begins with looking at the comparables closely and seeing if there is a pattern between the homes that sold for the most amount of money, and if that pattern is something that we can take advantage of. For example – did the highest sales all brag and boast about having home offices? Was it that they were turn key and freshly painted? How about mentions of the street or block?
Next, we physically get out and go and look at the competition. What this does is reaffirms our list price, but also gives us an idea of what our relative strengths and weaknesses are compared to them. Then, you guessed it – we describe and market our home in a way that specifically plays to our strengths and negates our weaknesses. Do we have slightly larger rooms? Sounds like OVERSIZED bedrooms to me. Slightly larger yard? Let’s call it a RARELY OFFERED extra-large yard PERFECT for a swimming pool. Is our layout incredibly unique and abnormal? Sounds like a RARELY AVAILABLE model with a great use of space. There are many ways in which you can do this, but the point here is to make sure that when people glance over your description, they pick up on a few keywords that set you APART and BETTER than the others. Don’t WASTE those precious CAPS on RANDOM words WITH no benefit.
Another incredibly important aspect of Positioning is inherent in HOW you list the home, at least in my professional opinion and experience. Earlier I made mention of a COST buyer VS a QUALITY buyer, where the COST buyer is always looking for the best deal, and the QUALITY buyer is looking for …well… quality – AND they are willing to pay a premium for it. In other words, if you can increase the quality of your home, you will realize a gain on that investment. An easy way (again, in my professional opinion and experience) has to do with the platform in which you sell your home.
Take a used car for example. If you drive a Ford, do you think you will attract a better buyer on Tony’s parking lot on the side of Main St, or on the Ford dealership? The dealership obviously. Why is that? Well, the people that walk on the Ford Dealership lot are QUALITY buyers, who are willing to pay a premium for a Ford because they VALUE (KEY WORD) the reliability in the car being serviced, maintained, warranted and sold by the dealership. They are NOT concerned with the cheapest price, but rather a SAFE and SOUND investment.
Real Estate is no different.
There are certain circumstances, depending on the representation of the home, where the Buyer may perceive the home being offered as a ‘bargain’ or a ‘deal’, and on the equivalent of a discount market. Inherent in this representation is the TYPE of buyer that will be attracted to it. Think: Most buyers looking for quality don’t shop at garage sales.
On the other hand, certain platforms (brands or methods) of selling a home give the entire opposite effect. The most reputable brands, recognized brands or luxurious brands often carry with them a sense of quality that comes with it. These brands are often expensive to be a part of, require a large investment to work at and to market properties with, and as a result often (not always) attract agents that are that much more focused on production and sales. You see more full-time agents working with these brands/platforms as well – which carries stigmas with it about professionalism and quality as well. Inherent in this representation is the TYPE of buyer that would be attracted to it. Think: Most buyers looking for deals don’t pay retail pricing.
Of course, these are general principles that I have observed and believe, but they are certainly NOT absolutes. There are and always will be some exceptions to the rules, but nonetheless – I would pay close attention to getting as many factors on your side that help.
In my experience, that margin that is to be made by investing in the QUALITY of your home and attracting a QUALITY buyer that is willing to pay more is part of the commission earned by a Realtor. I personally have listed many homes where a simple change in representation attracted more, better buyers and ultimately more money on closing day.
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