To achieve the best property price for your real estate, you should follow the 7 step formula detailed below which applies to all types of properties.
The first step in knowing the true value of your home is to enlist the help of professionals. Experienced real estate agents like Otto Property are the best places to start and ask for a comparative market analysis (CMA). A CMA is a report which compares recent sales data as well as current listing data against your property so as to determine a comparative market valuation for your home.
At this stage, it is important to remain realistic as the natural tendency is to place a higher value on your own home that you hold dear.
Compare the competition
Once you have established a market value, it is important to know what you’re up against in the current market. Your CMA should outline at least six properties that are currently on the market in your area and at your price range. Although you may be tempted to view those properties at open inspections, this normally isn’t necessary. With the extensive range of photos and detail available on the internet, this is usually an adequate means of researching the current market. The properties in question will undoubtedly be listed on one of the two following websites:
Decide upon any updates and improvements.
This can be a tricky step in the process as it often comes back to personal tastes as to whether your home needs a splash of paint, updated furniture or even a change in floor coverings. It is important more so at this point than any other to be objective and to cater to the tastes of the market that your house is targeted to.
Part of the service that Otto Property provides is to offer basic advice on what might be some simple improvements. It is important at this stage to be thrifty and to only do those things that will cheaply and quickly increase the overall saleability of your home. In general, only undertake those projects that will take no more than a few weeks to complete.
Set a realistic budget for improvements and stick to it.
As mentioned above the goal here is not to spend time and money to impress but to improve your home’s selling price quickly. Once again this is a good opportunity to consult professionals both on expected costing for the improvements and also if need be to gain referrals for quotes on some of the jobs that may be more cost efficient in outsourcing. These things may include garden tidy, and rubbish removal businesses, handyman services and even furniture hire companies.
Stick to the plan at all times and avoid getting too carried away by the excitement created by your homes renewal. The moment you start to spend more than you have wisely budgeted for or you get the renovation bug is the moment you should realise that you’ve gone too far.
This may well be the most important step in ensuring the best price possible for your home. If you wanted to sell your car you would vacuum, clean and polish it to show it in the best possible condition. You should apply the same sensible philosophy to your house and in particular removing all those bits and pieces which tend to clutter up a house.
This includes all outdoor and garden areas and windows as curtains and blinds should be opened up for inspections to let the light in. Any personal items and bits and pieces that you haven’t used in the last month should be removed leaving a blank canvas to be cleaned, dusted and polished.
Some vendors choose wisely to invest in a short-term storage facility so that all of these items can be removed without cluttering up the cupboards. Believe it or not, some people do look inside cupboards while viewing your home.
Reassess the value of your home and put it on the market.
Once your home is complete and ready to put on the market, you can now reassess the market value. It may well be that your hard work and financial commitment may have paid off in presenting your home at a higher value than initially assumed.
Keep it Clean.
Don’t let all your hard work go to waste. Keep your home as clean and uncluttered as possible. Not only will this make it much easier to prepare for open inspections but also for return viewings from interested buyers.
Also, don’t forget the front garden. First impressions are important, and you never know how many people will take a drive past your property as the first step in deciding to attend an open inspection.
Daniel Otto has been a part of the property industry for over 15 years, with experience that stretches across real estate sales, investment, rental management and development.
Please reach out if you have any further property related questions.