What £1 Coins Selling for £300 Have in Common With Selling a Property
You’ve probably heard the news… £1 coins selling for 300 odd pound… crazy right? No.
I heard the news reporter saying people must be mad to pay £300 for something that’s worth £1… “They must be mad”. She thought their mad, they probably think they’re getting a bargain.
You see, with anything, especially property. The ONLY person who can dictate the value, is the person who wants to buy it. Not the seller, not the estate agent and not the news reporter.
This is why estate agents can’t and don’t always get the price right… because they just simply don’t know who is out there at that moment in time wanting that particular property and how much their prepared to pay for it.
The ‘mad’ person who pays £300 for a £1 coin is a ‘minority’ buyer i.e. they are prepared to pay more than most. That may be because they have a collection to complete, they may feel positive that in 30 years time, it’ll be worth £3000.
Exactly the same as selling property. There is a ‘majority’ market value, and a ‘minority’ market value. You have to price and market for the majority (based on recent similar sales and current competition) and you might just get lucky and find a minority buyer. A majority buyer is the one who just wants a 3 bed house in a certain area, a minority buyer is the one who NEEDS it to be in that road, for example.
I’ve seen loads of situations where a buyer has paid more than I thought they would… just because they wanted it.