Valuation & Marketing Plan
8 Clacton Road, Frating CO7 7DG
- 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
14/10/2016 £366,500 (£256 p/sqft)
E (£2,210 p/yr)
Where your home sits on the market
Your property is one of the 14,433 houses that make up Colchester, CO7.
Our latest research tells us that 4 bedroom houses are worth £409,316.
In total, there are currently 56 4-bedroom houses for sale in Colchester, CO7 and in the last year, there were 436 houses sold in Colchester, CO7. The average sale price of these properties was £335,868.
Overall, we have consistently found that the market for houses in your immediate area, that have been professionally marketed and strategically priced, has remained buoyant throughout the past year.
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 on 14/10/2016 for £366,500, according to the South East stats, it should be now worth £383,000 however Colchester and the CO7 area has gone up more
Values in Colchester, CO7 have changed by 3.06% in the last 12 months and around 15% over the last 4 years respectively.
The current average value for the area is £337,118.
A 15% increase would point to a £421,475 valuation for your house.
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.
Difficult to find a chalet sold recently in the area, this is a 3 bedroom chalet in Alresford with the luxury of a swimming pool.
Sold for £395,000 in July 2019 1,302 sq.ft and therefore £303 per sq.ft
The same price per Sq.ft would mean £433,896
A 4 bedroom detached near you, much larger but I wanted to explore the price per sq.ft it sold at £780,000 in November 2019 and is 2,357 sq.ft, meaning £331 per sq.ft. However it has a swimming pool and also a much larger plot.
Currently on the market
What are the properties that you would be competing against?
As a 4 bedroom detached chalet with out-buildings including a large outside office and a large garden, this property offers a lot of attractives features.
At £425,000 it would compare very well to any similar property in the area but agents around here have an history of grossly over-pricing. Your own property had been on the market first of all at £425,000 before eventually dropping the price to £380,000 and agreeing a final price of £366,500, a 13.76% drop!
We have to be mindful that the property market will be under pressure in the next coming months.
Minimum price: £415,000-£420,000
Target price: £435,000-£450,000
Marketing Plan = the right price + the right price strategy+ the best presentation + best promotion = better sale every time ( 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.
On the contrary a property correctly priced and even underpriced by 2% should 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 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 267 listings over the last 12 months in the CO7 postcode, price reduced 72 by an average 5.1% and sold 91 reaching on average 96.1% of the original asking price according to getagent.co.uk
That is a sale ratio of 34% (91/267) and mostly for properties with price reductions, when they price correctly they achieve a sale closer to their asking price and thus protect their average sales.
As an agent I only had 4 properties on the market in the CO7 area, I sold 2 without any price reductions compared to the original asking price and I still have 2 on the market.
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
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 £425,000" for 3 weeks and if not "proceedable" offer is received, we move the price to a plain £435,000 for a duration of two weeks before price reducing back to the original price of "in excess of £425,000". This boosts the exposure on Rightmove as you may below:
With a more aggressive price launch, we are more likely to attract a higher number of potential numbers competing to pay more that £425,000. By rotating the price between £425k and £435k we trigger a boost overtime we price reduce the starting price but we also paint a picture for the potential buyers that the final price will be strictly over £425,000. The downside of that strategy is that the final selling price will not likely reach over £435,000.
Price Strategy two
We launch with a price tag of "in excess of £450,000" 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 £450k to £440k and then £425k ( 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. If from £450k the level of interest is good, we may move up to £460,000 for two weeks before price reducing back to £450. From there we have the various options explained above.
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 £430,000.
By the time I capture the pictures and prepare the marketing, you and I will have more time to decide on the price strategy according to market conditions.
Presentation and promotion
As you would have noticed from my website and/or all the listings on Rightmove, I pride myself from 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 what I call the "tendring peninsula" comprising CO7, CO13,14,15, 16 postcodes
"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 case 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.
Timing and timetable
As we get close to "deconfinement" , ideally we need to launch just before or just after the economy starts to resume some kind of normality.
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.
Ideally it would be great to be able to fully list your property while everyone is still in confinement as the exposure online will keep increasing.
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.
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 £4,000 incl VAT and a 10% performance fee of anything I achieve over £430,000 as a target price.
So let's say we achieve £435,000 my agency fee will be £4,000+£500= £4,500 inc VAT
If we only achieve £425,000, the fee will be £4,000.
Fee structure two
Marketing fee of £4,500 inc VAT and a 10% performance fee of anything I achieve over £450,000
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 CO7 postcode.
My terms and conditions are available for you at the bottom of this page.