The farmhouse which we recently sold is a wonderful, charming perfectly restored property located in the hills around Todi. From the first moment I saw it, I knew that, with our real estate group, we could sell this beautiful property, although initially it had a very high asking price.
The property was initially on the market about a year and a half ago for €2.25 million even though my valuation was for less than or equal to approximately 1,800,000 Euros.
We were concerned about taking this property at that price, but given its uniqueness and also in discussion with the owner of Great Estate, Stefano Petri; we agreed that with work, in time, thanks to our IT tools, we would be able to convince the owner of the accuracy of our valuation.
Unfortunately, many national as well as internationally renowned real estate agents often acquire properties whose prices are out with the current market value. And so often, our work and our advice is seen as an end in itself to lower the property’s value, when instead its our aim to give advice to the seller in order to sell better, trying to avoid the depreciation of the market of the economic crisis.
Unfortunately, this is the current situation of the Italian real estate market, where the pseudo professionals still haven’t realized that the world has changed and that the prices reached a few years ago would be unthinkable now.
Since October 2012, we have informed the seller on a monthly basis of the online statistics as we realized that the price was completely out with the current market value.
In May of 2014 we met again with the owner and revised our valuation with the owner agreeing to lower the asking price to 1.8 million Euros to share in a more aggressive marketing plan at 2,500 Euros.
Since then, as you can see from the graph in the picture, everything changed.
We went from about 200 views per month to a peak of 1,000 views per month and in a few weeks the property was sold at €1.5 million which happens to be perfectly in line with our valuation in March.
Once aligned with the current market price, we began viewings twice a week, and within four months the property was sold.
This sale, like many others at this present time, increasingly shows us, that in order to sell the property, it is necessary to have two elements:
a) Having a substantial database of buyers, even now, this is guaranteed by the Great Estate Group. The fact that farmhouses in Umbria alone last year had something like 60,000 views corresponding to about 165 clients who every day looked at our website for Umbrian farmhouses.
b) Have the market analysis tools that will allow everyone to know an accurate valuation.
Last week the notary deed of sale was completed and the seller was delighted with the achieved results and greeted us by saying “”If I had followed your advice earlier I would have sold sooner and better, but unfortunately we often don’t believe real estate agents, but I know I will follow the advice given by the Great Estate Group next time””.
I am proud of this sale, which allowed us to sell one of the finest properties in the Todi area and I am increasingly confident in how to manage sellers thanks to Great Estate’s cutting edge IT and marketing systems.
I think what Ilaria experienced in this sale is the benchmark of what every consultant working within our group should have by giving the right advice to sellers. Too often, professionals, even within the group, are carried away by the beauty of the properties that we manage to forget that everything has a market value and that subjectivity should not be present in our profession. Fortunately over the years, we have created prominent visibility both nationally and internationally, and especially with our strength in numbers and knowledge of the market. Moreover, we have a series of IT analytical tools that are at the forefront and it will be my task in the coming months to convey to the group the great potential of these tools and their analysis.
We are also developing a new important project that aims to have property valuations “computerized” which will show the sales history of that type of property in a given space time and place that will be included in the same database. This is yet another step to ensure we give the best possible advice to our clients to achieve an even better performance.
In this negotiation, which in any case was successfully and positively concluded, is that if we had different tools we could convince the owner to adjust the price to that of the market value and therefore be able to sell the property quicker without lowering the value a year and a half later.
My goal at the end of the year is to create a valuation IT system that compares not the values of other properties that are on the market that often distracts the seller from the reality of the situation, but rather a comparison with specific properties and relative sales value that always differentiate between 20-30% from the prices asked. I am certain that we will be able to use this new IT system and then we could truly give a complete and reliable advice package and it will be the owners’ opinions and vision that will make the difference.