The job of a good consultant is to guide clients, educate them on the best way to sell a property, and help them achieve the goal of the sale. At the same time, knowing all this helps you to become more and more a good professional / consultant in this market.
What is the great objective of a real estate professional? Finding properties, serving clients, making dreams come true... All of this is part of it!
But, to me, the great goal of every real estate professional is to transform real estate into good products for the market. But, what does this mean? Anyone who is interested in marketing has certainly heard of the 4Ps Theories, created by Philip Kotler.
This concept of the 4Ps presents 4 of the main points of any product or service that will be launched in the market: Product, Price, Place and Promotion.
- Product: What you sell or rent and can be an Apartment, a House, a Land, a Real Estate Project, etc.
- Price: How much the Landlord charges and how this impacts the way your customers view the products you promote.
- Place: Where you promote, where your product is located.
- Promotion: How customers find out about the Product and what strategies are used, and if they are effective in closing the deal.
These are the points that must be considered, studied and understood for the success of a product. And these 4 points are a set, one cannot exist without the other.
Just so we understand, and in the case of any real estate business, the P of "Place" refers to where you will sell your product. The P of Product is what you will sell, what product or service you will offer to the market. The P of Promotion is how you will promote and offer this product or service, what marketing you will do to sell this product. And, finally, the P of Price, which means what the value of this product or service will be.
In the Real Estate market, is Price that important?
Going back to the beginning of this text, the main job of a good real estate professional / consultant is to transform real estate into a good product for the market.
What does this mean? It means analyzing the 4Ps in every listing that the Consultant will do.
But overall, in the case of real estate, we have no control of 2Ps. We cannot change the "Square"/Location of the property, nor the "Product" itself. But..., the GOOD ADVISER can ALWAYS choose what kind of "Promotion" will be done.
Can we control the Price? No...
But, the Consultant can and should make owners aware of the real market value of their property. He should help them find the best selling value for their property, because the appraised value and the time frame for selling a property are completely related.
We know that it is common, that owners already have in mind a value that they want for their property, but most of the time this is a value that they have heard about or based on the value of m² in the region. Most of the time, it is a value that is much higher than the real value.
But how much higher? What is the variation between the owner's asking price and the final sale price?
According to data from Confidencial Imobiliário we can affirm that it varies from region to region, from product to product, but it oscillates between 20% to 30%.
Think about this... If you were a car salesman, would you work with a vehicle that was 20% to 30% over list price?
So why work on a property like that?
What is the relationship then between the price and the sales deadline?
Why are properties sold in this time frame?
It can be said that 3 or 4 months is not a long period for the sale of a property, and by the way, nowadays, it is even rare to happen, because you only have to talk to several owners and you will find people who have their properties for sale for 1 year or more. In the great majority, these properties have not had any kind of professional evaluation, therefore, they have more expensive prices, and this influences the speed of sale of these properties.
The goal of the GOOD ADVISER is to turn properties into GOOD PRODUCTS for the market. Therefore, when we raise a property and perform a price adjustment, our ultimate goal is to make the sale of that property for a value that solves our client's problems and in the shortest time possible.
We have the power to improve an important part of the market: Ours!
Transforming properties into good products for the market is beneficial, because it creates products that will be sold in a short period of time. For the owner, since we will make sure that his property will be sold, and in a satisfactory time frame. And finally, for the buyer, because he will know that he is buying a property with a correct value, and will have good options in the market.
Our main goal is to sell, right? But not at any cost.
We want to do it with quality, and mainly to advise our selling clients to make the best real estate transaction. And, many times, it also means advising them not to make some transaction!...
The job of a GOOD ADVISER is to guide clients, educate them on how best to sell a property, and assist them in achieving the goal of the sale. At the same time, knowing all this helps you to become more and more of a good professional / consultant in this market.
So, in summary, what is the big secret and the big pillars for a good sale?
Analyze the 4Ps of real estate! With this in mind, create courage and differentiate yourself!
Understand, in fact, your importance in that process. Put yourself as an authority on this subject and, for sure, you will stand out being a GOOD ADVISER and helping your clients.
Article written by João Carvalho, Real Estate Investment Director at The Golden Phoenix.
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