Valuation & Marketing Plan
146 Connaught avenue, Frinton-on-Sea
- How I get to a valuation for your home
- My marketing plan to achieve that price
- My fee structure
Type of home
Council tax band
28/11/2014 - £460,000
F (£2,612 p/yr)
Where your home sits on the market
Your property is one of the 5,598 houses that make up Frinton-On-Sea, CO13.
Our latest research tells us that, on average, 5 bedroom houses are worth £580,870.
In total, there are currently 8 5-bedroom houses for sale in Frinton-On-Sea, CO13 and in the last year, there were 174 houses sold in Frinton-On-Sea, CO13. The average sale price of these properties was £352,553.
Using the office of National statistics, I can project a first "base" valuation of what your property should be worth, assuming that no major improvement was made.
Your purchased the property in November 2014 for £460,000, according to the South East stats, it should be now worth £564,000 which is a 23% increase
Values in Frinton-On-Sea, CO13 have changed by -3.83% in the last 12 months and 25.43% over the last 5 years respectively.
To put this into perspective, the change in average values across the UK were -1.99% for the last 12 months and 15.18% for the last 5 years.
The current average value for the area is £314,568.
First of all, I always look at comparable properties sold recently in the area rather than the ones currently on the market as they tend to be overpriced.
Sold in January 2020 for £535,000, this 5 bedroom detached with a garage is 2,120 sq.ft, meaning £252.36 per sq.ft. Despite the size and the garage, I don't think it is as attractive as yours.
Currently on the market
What are the properties that you would be competing against?
On the market since January 2018 and now at £569,995. 5 bedroom with a garage but only 1,440 sq.ft which sold in 2014 for £362,500, £251.74 per sq.ft. It was probably improved but it is still clearly overpriced despite an avenue address.
5 bedroom detached property with a garage in 4th Avenue, on the market since May last year but not selling at £525,000 despite the space with the extension ( 2,421 sq.ft) and the quirkiness.
My first price analysis points to a valuation of £564,000 based on average variations for the area. However the average price is £315,000 and probably increased more as a % than the upper prices.
The direct comparable method used alongside a price per sq.footage would point out towards a valuation of £526,000
Lastly I would say that the main reason a property does not sell is the price. At £550,000 your property did not sell and the market dictated that outcome. It would be interesting to hear if you had any offers and for how much? This would now dictate the lower price of my valuation because I would hope to achieve more with a better marketing and higher visibility.
However we have to be mindful that the property market will be under pressure in the next coming months.
Minimum price: £500,000-£520,000
Target price: £535,000-£550,000
Marketing Plan = the right price + the right price strategy+ the best presentation + best promotion = better sale ( higher and faster)
The correct marketing implies the right price strategy. I will "over-market" any of our properties by providing the utmost exquisite marketing but I would strongly advise against over pricing as it causes damage to the final achievable price. I believe that a 3-5%- overpricing may result in a 5-8% negative swing to trigger a transaction. Most estate agents only sell after typical price reductions of around 5 to 7% often attracting lower offers. Any overpricing by 10% or more will greatly affect the ability to sell.
On the contrary a property correctly priced and even underpriced by 2% could trigger a positive swing of 3% or more in the first 4 weeks on the market.
I don't wish to seek a negative approach towards my competitors but I would like to show you that all others adopt a totally different strategy of starting high and then price reduce.
If we take the market leader in the area in term of volume, they had 318 listings over the last 12 months in the CO13/CO14 postcode, price reduced 78 (24.5%) by an average 6.3% and sold 61 (19.2%) reaching on average 93.1% of the original asking price according to getagent.co.uk
This is to show you that starting high to "test the market" and see "how it goes" does not efficiently sell properties.
Frinton-on-sea is a seasonal property market and it takes longer to sell properties! It must be made easier by starting at the right price!
This pricing philosophy allows my home sellers to achieve just over the original asking price, In Frinton or elsewhere, this is factually and transparently reported by getagent.co.uk
However all around Colchester I am the only estate agent actually delivering a final price just over the original asking price as you may check here
This is despite the fact my average property price is currently over £600,000 where it is more difficult to sell than the average property price of £315,000
The price and valuation is one thing but the price strategy is planning on how to achieve the best possible outcome.
Once again most estate agents start "high", see "how it goes" and then push their vendors to drop the price several times to attract interest.
I always try to present different price strategies for you to discuss and choose from but I believe that the price strategy must be "dynamic", meaning that if buyers are not found within the first 2 weeks of marketing, the price must change! It does not mean "price reduced" and you will see what I mean:
Price strategy one
We launch with a price tag of "in excess of £525,000" for 3 weeks and if not "proceedable" offer is received, we move the price to a plain £550,000 for a duration of two weeks before price reducing back to the original price of "in excess of £525,000". This "reduction" boosts the exposure on Rightmove as you may see below:
With a more aggressive price launch, we are more likely to attract a higher number of potential numbers competing to pay more that £525,000. By rotating the price between £525k and £550k we trigger a boost every time we price reduce the starting price but we also paint a picture for the potential buyers that the final price will be strictly over £525,000. The downside of that strategy is that the final selling price will not likely reach over £550,000. This price rotation can be repeated but not inside a two weeks period. A plan B would be to eventually move from £525,000 to "in excess of £500,000" if no interest was generated between £550,000 and £525,000.
Price Strategy two
We launch with a price tag of "in excess of £550,000" for 3 weeks and depending on the level of interest we have two options: if no interest at all we move to the first strategy in a straight move or in two negative price variation from £550k to £538k and then £5255k ( it has to be over 2% to get the price reduction boost) . From each level we could have a price rotation every two weeks or keep going down. Once we are at £525,000, we may rotate the price like in strategy one.
The disadvantage of that strategy is that we will receive less or no competing interest and we will need to price reduce in real term. This strategy offers more dynamic variations in prices and may well attract someone at a higher final price than , let's say £530,000.
Presentation and promotion
As you would have noticed from my website and/or all the listings on Rightmove, I pride myself for delivering a "high-end" marketing to all the properties I sell:
- Twilight photography
- Lifestyle photography
- Unique 360 photography and virtual tour
- Proper floor plan
- lifestyle description
I spend a long time capturing the right pictures and process them, I strongly believe that the best possible presentation will only help to sell better. It is what I call " the slow-in, fast out" strategy or preparation to succeed.
Once everything is ready, I typically launch a listing between Tuesdays to Thursdays and between midnight and 6am because I have calculated that this gives the absolute best exposure on Rightmove.
All my listings get a "premium listing" for ever and a "featured listing" for at least the first 3 weeks and anytime we price reduce. People cannot buy what they can't see and my philosophy is to provide the highest possible exposure for all my listings, something that I achieve anywhere I list properties and can be measured in Rightmove:
Below you will find the table for the CO13 and CO14 postcodes, one table showing the data over 12 months and the second one since the shutdown on March 23rd
"The longer it takes to sell, the harder it gets to sell" and the best exposure and the optimum probability to sell higher is achieved in the first 3 weeks of marketing ( what I call "plan A").
Plan A in this example below was to capture the marketing before lockdown and only launch in the middle of the second week as I witnessed a drop in exposure during the first week. The virtual tour helped and offer accepted at the asking price after two weeks on the market.
Plan B is to have a dynamic price rotation to keep the interest coming.
Timing and timetable
The weather is currently very kind and any outdoor shots will portray your property in the best light of Spring.
I could already capture daylight photography and the twilight photography without going inside and putting your family at risk.
Once you are happy with me going inside, I will capture the photography internally.
Once on the market I conduct all viewings because viewers are more likely to enjoy the experience with the estate agent rather than the home owner. It also allows me to gauge an immediate feedback so important for future negotiations.
I have strong negative views regarding the housing market in general but I believe that we have 3 months from now before the real bad economical news do get published and influence the behaviour of buyers.
I also believe that Frinton-on-Sea will be sheltered as it will attract a number of buyers wishing to change positively their lifestyles compared to a commuting life or busy urban living.
First of all I only wish to act as your sole agent for two simple reasons:
- I believe that multi listings only make you look more "desperate" and less "exclusive".
- I don't want to spend money on your listing and witness a buyer calling the other agent because they feel more capable of achieving a discount with the lesser agent
Marketing a property is also acting in your best interest by helping you negotiate the best possible price when a buyer makes an offer. As a vendor you will also benefit from me advising on your next purchase and I know that this is where you may gain a bigger saving. ( obviously I cannot do that if you buy one of my existing listings, however I like my buyers to know and feel they are paying the "right" price, the fact that I achieve just over 100% of the original asking price on average helps my buyers understand that)
Like the price strategy, I will give you different fee structures for you to choose from as I believe in being better paid to deliver a greater outcome.
Fee structure one
My marketing fee is a fixed £5,000 incl VAT and a 10% performance fee of anything I achieve over £550,000 as a target price.
So let's say we achieve £560,000 my agency fee will be £5,000+£500= £5,500 inc VAT
If we only achieve £525,000, the fee will be £5,000.
Fee structure two
Marketing fee of £4,500 inc VAT and a 10% performance fee of anything I achieve over £530,000
So let's say we achieve £550,000 my agency fee will be £4,500+£2,000= £6,500 inc VAT
If we only achieve £525,000, the fee will be £4,500.
We can discuss the level of "target price" and even imagine a different fee structure which you may prefer.
It is really about expectation and delivering the right selling price. This will strongly depend on how the property market reacts in the next coming few weeks.
I am also flexible on the contract length but would appreciate at least 8 weeks to deliver the expected outcome for a property in the CO13 postcode.
My terms and conditions are available for you at the bottom of this page.