I get it, you are upsizing and every penny counts. You’ve saved hard towards a deposit. You may have foregone certain types of expenditure such as holidays or your takeout coffee, made a packed lunch. It’s been hard. So why would you spend any of that hard earned money on your existing property? It seems counter intuitive.
In this blog I’d like to explore why spending money on your current property when selling is not a waste.
Investment Not Cost
Your home is your biggest asset and therefore it makes sense to maximise its potential. When selling you need to flip your thinking and regard any money you spend on presenting it as an investment rather than a cost. Styling your property for sale is still a relatively new concept in the UK but in the US it is commonly an integral part of the sales process.
To explain the concept I often use the analogy of selling your car. It is almost a given that if we are selling a car, before we advertise it or take it to a dealer we wash it and hoover it – perhaps have it professionally valeted. That involves a cost in time, effort and/ or money. Why? Simply, it’s because we expect to get a bit more for our car. We’ve made an investment in the car to make it looks its best. Styling your property for sale is the same principle. You invest in your property because you will ultimately sell for a better price and/ or sell more quickly
What Is Worth Doing?
What is worth investing your time, effort and money on? This will differ from property to property. Cleaning and decluttering are always worth spending time and effort on. If these are tasks you don’t enjoy, get someone in to do them for you. Consider issues that you may have encountered with your property yourself (and perhaps put to one side), if you’ve found it a problem chances are your buyers will. If you are already on the market make sure that you ask your agent to obtain honest feedback from viewers as this may give you a clue as to changes that you need t make. On one occasion when I was selling a property I extended the driveway to accommodate a second vehicle because I was aware it would improve the saleability of the property. Decorating (in neutral colours) is always worth doing. I probably wouldn’t do a complete new kitchen or bathroom. Repairs definitely. Outside space is always something that is likely to be worth while investing in.
When it comes to spending money (as opposed to time and effort) it is worth bearing in mind that not all expenditure will be reflected in value added to the property. It might be that it is something that needs to be done to make the property more saleable. If a property struggles to sell the typical reaction is to reduce the sale price. A price reduction has to be sufficient in relation to the asking price in order to have an impact. Generally, and this does of course depend on what needs doing, what you invest in styling your property for sale will be less than the amount of the price reduction. If you are not yet on the market then it should be less than the improvement in asking price. I will always advise on what investments to make to be effective and taking account of your budget. However, a very basic guide would be between 1 and 2 per cent of the sale price.
To recap – regard any money you spend on presenting your property for sale as an investment rather than a cost, decide what needs doing and invest your hard earned money wisely.
Have you got a property you want to sell for the best price? Call me on 07745 876182 or e mail me on firstname.lastname@example.org. I cover Wirral, Cheshire and the North West