October 11, 2019

The ‘Magic’ Formula of a Home Sale Price

I’ve always had a complicated relationship with the notion of magic because it is the field where both science, art, philosophy, engineering and story come together like a puzzle – but the pieces are hidden. The trick for me was never in the ‘illusion’ it was in the ‘reality’ of bending all of these rules, the logistics and the ‘show’ that goes on beyond the ‘trick’- that is the magic. 

It has me thinking about the ‘magic’ in our world. When it comes to imagining and creating an experience for our clients – ‘magic’ is a goal. Creating an experience in home marketing for a buyer to fall in love, for example, is something that we want to translate as being ‘indistinguishable from magic’. 

To achieve it, though, there are many moving parts to the machine and I thought it is time to break the first law of the magician’s code and unveil three of the elements and the alchemy of property marketing magic that we strive for.

BRAND

A brand is not a logo or a set of colours, a brand is a feeling. Our shires and towns have their own unique brands and our corner of the world has a brand that invites thousands of visitors seeking fun, sun, spirit, healing and community to visit us here every year – year after year – to experience it. 

There is a vibe to our area – a lifestyle – that is sought but not found in almost every part of the world and it is no surprise that the seeking of this brand has created a medium house price in Byron Bay that outperforms Sydney.

Capturing the essence of this brand is not no much about exploiting Sydney hipsters on a northerly migration but it is about finding the soul of our region and making sure that is the foundation of our story when it comes to connecting a property to the highly-valuable brand of our region.

STORY

“Little boxes on the hillside and they all look just the same…” Is a little song about the homogeneity of suburban developments and even suburban cultural norms. It’s depressing in the lack of individuality and the reality is that without uniqueness, there is very little ‘magic’ to be had in a property. Houses become ‘stock’ and the value is indexed to the house next door. 

We are very lucky in Byron because there are no ‘little boxes that look the same’ and so each unique property and its features demands a story of value. Every piece a property – whether that is a precision engineered 40mm marble countertop or a rich tapestry of cracks in veejay walls that gives a character map of a much loved family home – the story of that property gives it’s value to the buyer.

We must discover it and we must then tell it. We tell the story in collaboration with photographers, visual artists, and through words that capitalise on the emotionality of these tangible objects. That is the the cauldron of our magic – it is an unseen alchemy of creativity and meaning.  

VALUE JUSTIFICATION

So far the magic has focussed on that right-brain of emotions yet like all enduring magic there is a grounded and engineered rationale for the magic to be something more than just concept. 

A property value is supported by elements of data science that draws from current marketplace trends and movement as well as macroeconomic and financial drivers that impact the availability and the cost of money. 

These broad factors are triangulated by the deep experience of our agents within our region who understand the local levers that impact property values on a street by street basis. All of that has to be combined with buyer sentiment in the active cohort to identify what features are desirable, valuable, and sellable.