Increasing Seller's Property Value
Understand first of all that there IS a difference between price and value. Price is the
amount you are asking for the property. Value is buyer perceived, and this
perception of value is influenced by many factors such as location, features,
condition, comparison to other purchase option, etc. By attending to details
that can have a positive impact on the value, sellers can significantly
increase their chance of attracting qualified buyers willing to pay the asking
price.
Some tips to achieve a
positive impact on value are:
- Perceived size impacts
value, even more so than actual square footage. Open floor plans make a
room feel bigger than larger spaces with smaller rooms. Showing property
that is furniture free, or at reduced clutter, helps to make the space
feel bigger.
- Vacancy increases
sale-ability. Property is easier to show and easier to sell, and quicker
to take possession of when it is vacant at the time it is offered for
sale. Evidence of problems to take possession of the property -- such as
encroachments, or tenants who wont allow buyer tours -- negatively impact
value. Vacancy also helps the buyer walk through the property imagining
ownership. Sellers should remove personal trinkets and family pictures as
well as being conveniently absent during a buyer tour.
- Cosmetics are
important.
- Fresh paint will
always add more value than it costs.
- Clean or new
carpet/flooring adds more value than it costs.
- Landscaping adds more
value than it costs. At the very minimum, make the entrance area neat.
- If you can, add some
colorful flowers and new sod.
- Take care of the
obvious! The spot on the ceiling from the roof leak takes thousands of
dollars from the perceived value and the offer price.
- Condition affects
value. Do a seller's home inspection to identify and fix the problem
BEFORE closing. No point holding up your check a few extra days; plus a
failed buyer's inspection could cost you the sale. Buyers will often
bargain down your asking price to accommodate for property condition and repairs.
- If you can,
remodel/update the kitchen and master bathroom. These two areas have a big
impact on home buying decisions.
- Strategic renovations
impact value and your bottom line. Don't spend more money to renovate the
place than you can recapture in value on the sales price.