The property market can be a competitive arena, which is why you should ensure your property’s marketability and home value stands out from the crowd.
The ultimate goal for anyone selling their home is to attain the maximum potential price when listing their property for sale. In order to achieve this, it’s important to consider the impact that the value and marketability of a home can have in reaching your desired selling price.
Marketability vs value - know the difference:
People often confuse value and marketability as being one and the same. Although the two concepts work hand in hand together, they both bring something different to the table. The value of a property is determined by looking at things such as its type, size, features, and configuration, whereas marketability is more about the readiness of the property to be sold and relates to aspects such as the home’s condition, attractiveness, and aesthetic appeal.
According to Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, there are many factors that determine the value of a home and influence the marketability of a property which fluctuates according to the current standing of the market and economy.
How to maximise your home’s value:
The value of your property is to a large extent determined by supply, demand, and personal preferences. “For example, when demand for property is greater than the supply of available properties on the market, the perceived value increases. The opposite is also true, in that when there are a lot of homes for sale, but not many buyers – home values can stagnate,” says Goslett. Essentially this means that value is largely determined by what buyers are prepared to pay in the current market.
While renovations and alterations can improve on what the home has to offer, this does not necessarily translate into an increase in the value of your home. If you are renovating with the intention of selling, you should pay careful consideration to what the market is willing to pay for the property on completion, and if the renovations or alterations are worthwhile.
“A new kitchen or bathroom upgrade will make the home more attractive to buyers, but that does mean that they will be willing to pay an increased amount to the equivalent cost of the renovation,” says Goslett.
Being mindful of your home’s area and the value its location holds is important to consider so that you do not over-capitalise on your home renovations and affect the chances of your property being sold. “Why would a buyer want to pay more for the home, when they can get a similar one in the same area for less?” asks Goslett.
Make your home more marketable:
Investing time in getting your house ready for sale is important as it influences the marketability of your home and will attract more potential buyers. Maximising the potential of your home’s marketability is essential as it can result in achieving a higher price for your property. If the property is clean and neat, there is a higher chance that potential buyers will find it more appealing. A well-maintained and laid out garden, for example, can increase the marketability of a property but won’t typically increase the value by much.
Staging your property for sale will have a positive influence on its potential to be sold. This can be done by tidying up and removing unwanted clutter from your home. It is advisable to still keep it furnished as it is often tough to sell a home that is empty as it makes it difficult for buyers to envision themselves living in it. If you’re unsure if you are on the right track, helpful advice can always be received from any experienced real estate agent on ways to stage your home and spruce up your chances of selling it.
For any homeowner looking to sell their home, it is vital to consider the important role these two concepts play in maximising your home’s potential selling price and conquering the competitive sellers’ market.