Author: Ronnie Bredahl
If there is one thing that is sure in the real estate business,
the condition of a property affects its worth to a buyer. With a
home that is even slightly in disrepair the market value may
drop significantly.
I'm not necessarily talking about things that obviously affect
the value of your home, such as its structure or insurability.
Those are factors that can't be seen, and although they do
affect the value greatly, they don't always affect the way a
buyer views the property (note: if you do know about structural
problems you should have them fixed to avoid lawsuits).
What I am suggesting is that the way your home looks, when it
goes on the market, greatly affects the perceived value to the
buyer. It is often the details, or the little things, that
greatly affect the price you can ask for your home.
If you need an idea of what perceived value means, picture it
from a buyer's perspective:
Let's say you have listed your home for $299,000. That price
comes from comparing it to similar homes in the area.
When the buyer is walking through your home though, they see
leaking faucets, a roof that needs shingles, faded paint on the
walls, and a mess in the living room. From the buyers
perspective you may have just taken $50,000 out of the price.
The home they just looked at up the street was the same price,
and it looked to be in much better condition. The landscaping
was nicer, the house itself seemed to be in good repair, and it
didn't need all that work.
If your budget was $299,000 which one would you choose?
Fortunately, it isn't difficult to get your home ready for
sale. Unless your home is in need of major repairs, it doesn't
necessarily have to cost a lot either. Sometimes the market
value is in the details. Here are five steps to take to increase
the market value of your home.
1. Fresh Paint: Although a fresh coat of paint may only cost a
few hundred dollars if you do it yourself, it adds many times
that to the value of your home. Paint may seem like a simple
issue, but faded paint tends to make a home look dirty and
dingy.
2. Make Sure Everything Works: A burnt out light bulb, may be
just that to you. To a prospective buyer, though, it is an
electrical system that doesn't work. That burnt out light bulb
just took $5,000 out of the offer they were going to make. Make
sure your electrical, heating, and plumbing systems are all in
working order when trying to sell your home.
3. Cleanliness Matters: Just like a bulb was perceived as poor
wiring, a dirty carpet may be viewed as needing a replacement.
Take the time to clean your home while it is on the market.
4. Cut the Clutter: If you have three couches in your living
room, to you it may be functional. To a buyer you have just made
the room look three sizes smaller. The same holds true for other
rooms, and your countertops. Cut the clutter by getting rid of
unnecessary items in your house.
5. Make it Available: One mistake that can affect the way a
buyer perceives your home, in a big way, is not making it
available to show. Many people run on tight schedules. If you
can't make your home available to show on their time – you may
have just taken all $299,000 out of the price (lost the sale).
If you're serious about selling your home, make the times agents
can show it to prospective buyers flexible. This is best
accomplished by installing a electronic MLS lockbox. When
someone opens the box to obtain the key, your Realtor will be
able to see all information about who opened the box and at what
time via the Internet. The days of the unsecured combo locks are
gone!
About The Author: Ronnie Bredahl is a Texas Real Estate Broker
and owner of Austin Referral Realty, Inc. located in Southwest
Austin, Texas. http://www.
http://www.
