Valuation & Marketing Plan

 

30 Harwich road, Little Clacton, Clacton-on-Sea

Thank you very much for considering us to market your home, my purpose here is to show you:

 

  • How I get to a valuation for your home
  • My marketing plan to achieve that price
  • My fee structure

 

Valuation

Your home

Type of home

Tenure

Sale history

Bedrooms

Internal area

Plot/land area

EPC rating

Council tax band

Positive points

Detached house

Freehold

09/02/2007 £180,000

4+

+2000sq.ft

0.161 acres

?

D (£1,808 p/yr)

Negative points

Where your home sits on the market

Your property is one of the 10,851 houses that make up Clacton-On-Sea, CO16.

Our latest research tells us that, on average, 5 bedroom houses are worth £474,569.

In total, there are currently 10 5-bedroom houses for sale in Clacton-On-Sea, CO16 and in the last year, there were 366 houses sold in Clacton-On-Sea, CO16. The average sale price of these properties was £270,314.

Historical analysis

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.

Since many changes and improvements were made since 2007, it is impossible to use the 2007 price to project a 2020 price

Values in Clacton-On-Sea, CO16 have changed by 2.17% in the last 12 months and 34.29% 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 £241,271.

Comparative method

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.

84 Holland road

4 bedroom detached on the market for years at £550,000 and higher until we put the price to "in excess of £500,000" and got £505,000

Currently on the market

What are the properties that you would be competing against?

The street, Little Clacton

On the market for the last two years and not selling at £550,000

Valuation range

To be honest, there is very little comparative evidence for your house within your area. It is going to sound very vague but I believe your property is worth more than £500,000 and less than £550,000. Can I reach £550,000 or more? I don't think so to be honest! It is now about to show it as an object of desire or fine-tune the price strategy

Minimum price: £500,000

Valuation: £510,000-£525,000

Maximum price: £550,000

Marketing philosophy

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.

The Tendring peninsula 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, 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

 

Price strategy

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 "£550,000" for 3 weeks and if not "proceedable" offer is received, we move the price to "in excess of £535,000 for a duration of two weeks before price reducing back to the original price of "£550,000". This "reduction" boosts the exposure on Rightmove as you may see below:

Two weeks later we move the price back down to "in excess of £535,000" followed by another price rotation £535k-£550k-£535k or a further price reduction to "in excess of £520,000.

This strategy gives us a lot of flexibility with moving the price and search the level more likely to attract buying interest.

The danger of starting high is what I described earlier, meaning very little interest at the wrong price.

Price Strategy two

We launch with a price tag of "in excess of £500,000" for 3 weeks and if no higher offer received, we actually move the price up to £525,000 for 2 weeks and then back down to "in excess of £500,000"

With a more aggressive price launch, we are more likely to attract a higher number of potential numbers competing to pay more that £500,000. By rotating the price between £500k and £525k we trigger a boost every time we price reduce to the starting price but we also paint a picture for the potential buyers that the final price will be strictly over £500,000. The downside of that strategy is that the final selling price will not likely reach over £525,000. This price rotation can be repeated but not inside a two weeks period.

 

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 "Tendring peninsula" CO7+CO13+CO14+CO15+CO16  postcodes, one table showing the data over 12 months and the second one over the last week

 

"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 was to launch with every possible advantage on our side and get competing interests in order to achieve over £500,000.

Offers accepted after 7 days!

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.

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.

 

Fee structure

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.  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 inc 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+£1,000= £6,000 inc VAT

If we only achieve £525,000, the fee will be £5,000.

Fee structure two

Marketing fee of £4,000 inc VAT and a 10% performance fee of anything I achieve over £525,000

So let's say we achieve £530,000 my agency fee will be £4,000+£500= £4,500 inc VAT

If we only achieve £525,000, the fee will be £4,000.

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 CO16 postcode.

My terms and conditions are available for you at the bottom of this page.