OnDemand WTP Pricing Research

The importance of precision pricing | Deborah Battsek PR

Property Pricing : “Getting the asking price right is critical in today’s market.” says Marc Schneiderman, Director, Arlington Residential. DBPR asked London prime property experts to comment on the he importance of pricing correctly in today’s property market.

Brendan Roberts, Director, Aylesford International

“There seems to be an oversupply of new build developments, resulting in downward pressure on prices and the example mentioned in your email is interesting, although I would also want to check the specifications, amenities, outlook/aspect and things like fenestration, layout (does the layout work from a practical sense, or are the rooms very triangulated with sharp corners where walls meet, or windows meet walls making it quite difficult to furnish practically. Do both scheme provide the same security, concierge/porter, service charge levels often quoted on a £ per sq ft basis these days) and so on.

Then the resale market is generally starved of stock. Whilst sales are taking longer as buyers are reluctant to commit, and usually looking for ‘value’ driven by overall sentiment of uncertainty and the word on the street that the market is on its knees, the reality is generally quite different .  We have largely ‘discretionary’ sellers who will sell if they see that they can achieve a pre-conceived price target, or the price they were told they could achieve 2 or 3 years ago. The agent is tasked with managing expectations (both seller and buyer) , keen to win instructions as there is such little stock available, and convincing a buyer that they are not doing something rash! The result is that although a sale might take a lot longer than we are used to from the pre-2015 days, as soon as one buyer emerges and makes an offer, there is often suddenly 2 or 3, or even more buyers emerging – all keen not to lose the property and competing to secure it. One recent instance saw one buyer being ‘gazumped’ (remember that?) only for the 2nd buyer to then fail to perform after their initial ardour had waned and the seller subsequently left ‘high and dry’, hoping to rekindle a deal with the original buyer who has now gone off feeling particularly unhappy, and not in the mood to meet the seller’s olive branch. Another instance saw 3 bids from 3 buyers and ultimately a sale at a little over what any of us thought was achievable, given overall market conditions.

Read complete article here:

The importance of precision pricing.

Post a Comment

WP-SpamFree by Pole Position Marketing