THE DIFFERENCE BETWEEN VALUE AND MARKETABILITY
Homeowners who are looking to sell their property will be looking for ways to maximise the potential selling price that they are able to obtain in today’s property market. The first distinction that needs to be made in this process is the difference between the value of the property and the home’s current marketability.
To a large degree a property’s value is determined by supply and demand, as well as buyer’s personal preferences.
During the boom period, for example, the perceived value of property was much higher because demand outstripped supply, a pattern which seems to be emerging again. Property pricing is generally linked to demand and the value of a property is established by the prospective buyer. This means that a home’s value is largely determined by what buyers are prepared to pay for it.
Renovations to the home can change it's price level to some degree, but do not always mean that the value of the property will increase. For instance, while a new kitchen is generally a good investment, it will typically not increase the value of the home to the equivalent cost of the renovation. Over-capitalising is also a concern, as improving the home beyond the value that the area dictates will negatively impact on the home’s saleability, with buyers reluctant to pay more for the property than other similar homes in the area.
Marketability is determined by how ready the property is to sell. Preparing the home before it is listed will increase it's marketability and attract more potential buyers to the property.
While a landscaped garden or fresh coat of paint will not typically increase the home’s value, it will make the home more attractive to buyers and increase its marketability - even though the physical features have not been altered.
Marketability is often the reason why properties are listed in spring, as their gardens look more aesthetically pleasing.
Staging the property will also have an impact on its saleability. It is advisable to de-clutter the home, but keep it furnished. An empty home will make it look bare and it will be potentially difficult for buyers to see themselves living in the property. An experienced real estate agent will be able to provide valuable advice regarding staging the home and making it more appealing on show days.
Thinking of selling? Give us a call - it would be a privilege to assist you! Tel : 033 345 8256
Author: RE/MAX Midlands