Presentation – Part 5 of 6
The Value of Major Improvements
If you spend enough money in making the property more attractive, you will usually make it easier to find a buyer.
But you need to find middle ground. It makes no sense if the cost of the improvements is too high – often it would be more cost effective to reduce your asking price.
Most major improvements are personal and do not add the value you expect. An example is a swimming pool. If you pay $30,000 for a pool, the pool salesperson may tell you this increases the value of your property. But if the buyers don’t want a pool you will not get back what you paid.
Most improvements often return only half their cost upon sale.
You may have to wait years to find a buyer with the same personal taste as you.
If your property needs major renovation, it may be better to avoid the expense of renovation and instead select a lower asking price.
Many buyers want to renovate a property to suit their own taste. While minor improvements can give you a great return on your selling price, major improvements are often a big mistake.
Either spend a little bit of money to sell your property or spend a lot of money and stay there.
Focus on Features
Your property’s features are its biggest selling point; price is secondary. Sure, if there are two identical properties, then prices becomes important. But most properties are unique and each has a special ‘feel’ that makes it more or less attractive than another property.
Even an apartment in a building of look-alikes can sell for a higher price if the owners give it that special touch.
This is why it is so important to focus on the features your property has to offer. Why should someone buy it? Make a list of these features and make sure your agent knows about them.
But no matter how good a property may be, as the seller you should steel yourself for some negative feedback. Selling a property can be a cruel process sometimes.
You may be told by buyers, via your agent, that the property is too small or too big or too old or too new, or that it needs too much work.
Buyers may point out negative features that you never considered, so it is vital that you give your agent ammunition to fight these negatives with a list of positives.
When people focus too much on the price of a property they tend to forget its features. And this means you have to reduce the price or the buyers will choose a similar home at a cheaper price.
Almost all buyers make their decision based on the features of the property. It could be something as simple as a tree on the front lawn. Buyers buy properties they love first, and properties they can afford second. Features are more important than price. Focus on features.