In this blog , I'm going to cover 12 things you need to know about real estate.
#1 Market Value
A home is worth what somebody is willing to pay for it, no more, no less. So, what does this mean? Well, if you list your property at S700,000 and you get three offers all coming in at $600,000, guess what. The market value for your property is actually $600,000. It's only ever going to sell what somebody is willing to pay for it. So, when pricing you've got to be really careful, make sure you do your homework and it'll always sell at what the market is dictating it will sell for.
Upgrades to your property, don't necessarily mean you'll get more for your property when it sells. However, what it does do, it can increase the chances of selling your property quicker. It's normal hoping that when you do renovations it increases the property value, but it's not always the case. Usually you get a percentage of what you invested back when you sell. However, it does really increase the property's chances of selling quicker depending on how good the quality of the craftsmanship is, when you did the renovations.
A good point to remember for when you put your property it up for sale is that it can never ever and I mean absolutely ever be too clean. People don't want to come into your property and think, oh it's dirty blah blah. Because it actually affects what they think the value is worth your property. So, make sure before listing bringing those professional cleaners. Pay the $300, $400. It can never ever be too clean.
#4 Curb appeal
Now if you've got it listed in today's market everything is by appointments. So, before the appointment make sure you check outside that there's no clutter, no garbage, the cans are away. Even with a condo building make sure the lobby is clean, but the curb appeal sets the standard for the viewing before people arrive. They walk up, see that it's clean, open and tidy and they've already set their standards that they're expecting a great view in. so, curb appeal, pay some attention to it.
#5 Pets odor and clutter
Now these are two things that will leave the longest impression when somebody views your property. Not everybody likes pets, so, if you do have a home that you're selling with a pet, make sure you get some spray, get rid of the odor and put all the clutter away. If you've got a closet where you can put all the pet stuff in even better. Make sure you tuck it away, leave it nice and neutral.
Now I know this isn't really achievable by everybody. But if you can do a neutral paint job throughout the apartment or house, that is the best one that will appeal to the masses. We all have our own styles. Some people like dark colored accent walls. Some people like wallpaper. However, we got to appeal to the masses when we're selling our property and making it as neutral as possible.
#7 Cheap fixes and Updates
Now if you can't afford to do a high-quality renovation or fix of something, leave it alone and leave it as is. If you do it on the cheap, when somebody comes in, they're going to see that craftsmanship and they're going to put it in their head that they have to redo it anyway and that will affect what they offer. So, if you can't afford it, leave it somebody will come in and do it anyway.
#8 Everything is Negotiable
I can't stress this enough. So, when you see a property or when you're buying a property even when you're selling a property, keep in mind that anything in that property can be negotiated on, and it's a really good idea to be flexible. If somebody comes in and loves a painting or a couch and they want it as part of the deal be, open to that negotiation process. In real estate, we always say everything is negotiable.
#9 Time is of the Essence
Now we're in a seller's market, which means if something comes on the market it's pretty much selling within a few days. So as a buyer it doesn't give you the opportunity to see a property, go home think about it for two days, talk about it for two days and then try and act and move on it. Because it will already be sold. So. time is of the essence. If you see something be in a position to act on it and move on it as soon as possible, especially in today's seller's market.
#10 Location, Location, Location
Now there's a reason this saying is so important in real estate, it really makes a world of difference. It's better to buy a rundown place in a more desirable location, spend some money in renovating, because when you come to sell it, you're going to have more gain in the property value and it's going to be easier to sell versus buying a really nice house in a less desirable location, in this case what happens is you're going to find it a little bit harder to sell and you won't have as much gain in the property value. So, remember location, location, location.
Buyers will always notice what they want to change before noticing any upgrades. We all have our own minds and our own styles. So, when you put that $30,000 kitchen in, it might not actually be what the buyer is looking for. They're actually looking at the carpet they wanna switch out and spend $7,000 on putting hardwood flooring. So it's much better to give yourself an allowance in that price and maybe notice it in the comments that saying, ‘Hey, I’m gonna allow you a $7,000 difference to put in hardwood floors in if you like.’ so, remember that thirty thousand dollar kitchen might not always appeal to the buyer.
Plain and simple, when it's priced right it was sell. Now this is a hard one to grasp and I’ve covered this in a video before. There’re only three real pricing strategies. One is above market value, market value and slightly under market value. It doesn't matter where you go, however if it's not priced correctly it will not sell. It's just plain and simple. If you've priced it 100K above market value nobody's gonna pay that. So, pricing it correctly is key and if it's priced right it will always sell.
So there you go 12 things you should know about real estate. If today's blog led to more questions or you just have questions about anything else to do with real estate, please reach out. I’d love to have a coffee and a chat with you.