Perceived Value

Understanding how people form judgments and make decisions is key to knowing how to present a product to a market. We all make decisions and form judgments based on our visual perception of a product, environment, or situation. Visual perception is our ability to interpret information from our surroundings through the visible light that enters the eye, technically speaking. When talking about marketing and products, the resulting perception allows us to form a perceived value.

As sellers and marketers, we try to create perceived value through a buyers’ visual perception. Now, what is perceived value? When our product makes a touch point with one of the buyers’ five senses, immediately the buyer begins to form an opinion. Is this product attractive, of good quality, useful? Will it help the buyer to stand out or create the lifestyle they want? Although we could talk-up the features of our product, the reality is that customers buy products not for their features but rather for what they perceive the benefits of that product to be. An example I love to use when talking about benefits is a drill bit. When a buyer makes the effort to purchase a drill bit, what do they really want to buy? Is it the drill bit itself? Of course not! What they are truly buying is the benefit a drill bit will provide them, a drilled hole. So when selling property, we must ask ourselves, what are buyers really wanting to buy and how do we stimulate their visual perception and increase the perceived value of our properties?

The real estate industry is a very “visual” market place. It has been said that 80% of buyers first search online for prospective properties to view. The key word here is “view.” What are they “seeing” when online? How are you presenting your property (product) online? If you are using photographs, ask yourself: do these photographs show the property well? Can prospective buyers see the space? When buyers view these photos, they will form a judgment as to what they perceived the value to be (price and functional value), then make a discussion as to request a viewing or not. We want them to view the property, so we need to be sure our photographs show the full potential of the property. It is even more critical at the showing that buyers are able to see this potential as this will be the strongest selling point and the best opportunity for them to form a judgment.

However, before a buyer views the property, and even before the property is listed; realtors should evaluate the property and take note of every aspect of the home including, curb appeal, odors, lighting, finishes, furniture (if occupied), or the need of bringing in furniture. Take special note of unusual or modified floor plans. Once you have analyzed the property thoroughly, you can now develop a comprehensive staging plan that includes furniture, art, lighting, and accessories if vacant, and rearrangement and decluttering if occupied. Staging the property is not simply the rearrangement of furniture, or decorating. Staging is using design and marketing to sell space and a lifestyle that buyers want. It is marketing a product to gain a faster and more profitable sale. Staging the property allows buyers to see the full potential of the space. It gives them reference as to how their own furnishings will work, and creates an environment that they want as their own. The more a buyer can relate to the space, the higher they perceive the value to be.

The goal then is to let buyers “see” the full potential of every space within a property and allow them to imaging their lives there, giving them justification for aligning their perceived value with your asking price.

For more information, please contact BryanSuarez Property Presentation.

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