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Our Newsletter: March, 2010
Price vs Perceived Value
There is a huge distinction sandwiched between price and value. The price is
the amount you are asking for the property. Value is the buyer's perception of
that value, and is influenced greatly by location, overall features, current condition,
and the usual "comps" - the comparable homes and what they are selling for in the same
geographical location. By considering some important items that have a positive
influence on the value, sellers can significantly increase the probability of
attracting qualified buyers prepared to pay your asking price.
Some tips to attain a positive influence on value are:
Perceived size affects the perceived value, even more so than actual square
footage. Create an open floor plan; this will make a room feel bigger than a larger
space in cluttered or busy room. Show the property without furniture, devoid of
style distractions, and reduce clutter, this helps to make the space feel much larger.
Clear out all areas
A vacant home increases the overall appeal. The property is much easier
to show and conversely easier to sell. There is the impression that the buyer
can take possession quicker when it is vacant at the time it is offered for
sale. Evidence of encroachments, easements, or even tenants give the impression
of problems and negatively impact perceived value. Vacancy also helps the buyer
walk through the property imagining their possessions and ownership. Sellers
should remove personal items and family pictures as well as being completely
absent during a buyers walkthrough.
Aesthetics are important as well.
- Fresh paint always adds considerably more value than it costs
- New / Clean carpets/flooring adds much more value than it costs
- Landscaping adds more value than it costs, looks great, and affects curb appeal
- A new doorway / entrance provides a considerable amount to the overall impact, curb appeal and sale-ability
- If possible, plant some colorful flowers and cleanup and trim the front shrubs and or bushes
Water spots on the ceiling from roof leaks will take thousands off the
perceived value and the buyers offering price, paint as needed.
The Condition of the Home
Overall condition greatly affects value. Have a pre-sale home inspection
to identify and fix the problem(s) before showing the property. A poor buyer's
inspection report could cost you the sale. A buyer will often bargain down your
asking price to provide accommodation for existing property conditions and repairs.
Repairs cannot be disregarded, because nobody has extra money for them. Bring in a home inspector to examine the property professionally. The home inspection is invaluable and helps the seller identify problems before they become a bigger problem in selling the home. Better your inspector finds something major before theirs does.
Remodel certain areas if needed
Remodel and update the kitchen and master bathroom. These two areas have a huge impact on a home buying decision.
Renovations
Renovations have an overall impact value to your bottom line, but do not spend more money to renovate the place than you can recover in the sales price.
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