What Sells a Home?
Have you thought about what really sells a home? There are multiple factors, of course, but let’s delve in a little to get to the crux of the matter.
It’s every seller’s dream to sell their home quickly and for the best possible price, but how many homeowners really do their due diligence when it comes to a; selecting the right agent with the right strategy, b; researching recent sales in their area, or c; learning the most important features buyers look for in a home and understanding what are the biggest turn-offs.
Likely, they expect their agent of choice to know these things and trust them to share this knowledge, which is not a bad strategy if you’ve put the appropriate time and research into point a;.
We know from experience; this is rarely the case.
For more information on this topic, it’s worth reading our previous blog, https://whitehaus-realestate.com.au/2022/01/agency_selection_can_make_or_break_a_successful_sale/ which lays out the selection criteria you should be using to appoint your agent, and gives you the 8 essential questions you need to be asking during your recruitment interviews.
In the absence of this due diligence, many sellers only discover the true market value of their home after they have signed up for an expensive advertising campaign. If the price they want is not reached during the marketing period, the seller is locked in, and either have to accept they’ve paid for an expensive campaign that didn’t secure them a sale, or sell for less than they had hoped.
Not much of a choice!
Understanding some of the factors that affect how quickly and at what price your home may sell can save you from wasting thousands of dollars on a failed advertising campaign:
Location, Location, Location – or is it Price?
The location of your home is, of course, vitally important and will play a major part in how quickly it sells and the price you receive – this is something you cannot change. The fact of the matter is, the most important determining factor whether your home sells is not location, it’s price!
Every property will sell at the right price, regardless of location.
Let’s imagine you have a well presented home in a sought-after suburb, with a price that is more than any other comparable homes in the area. Is anyone going to buy it? Probably not, in fact, it’s likely you won’t attract many viewers, and you will simply be showing your home to the wrong group of buyers. It will matter not, where you choose to advertise, or how much you throw at the campaign, an over-priced property is never going to sell, whatever the level of the market. The additional risk that accompanies this strategy is that your property becomes over-exposed, which will ultimately have a negative impact on its perceived value.
Conversely, if you price the property competitively it will attract genuine interest and it will sell.
You have a much better chance of selling quickly if your home is priced to meet the market from the off – you definitely don’t want to be in a position where you are forced to reduce the asking price after a few weeks of low interest.
But that doesn’t mean underquoting either – beware of agents who propose this strategy to attract more viewers. There is no point attracting potential buyers, to make the open homes look good, only to disappoint those buyers when they realise your home is beyond their reach.
Home kerb Appeal and Presentation
Other factors that can affect the sale of your home are its kerb, or street appeal and its presentation when buyers step through your front door. Does your home have that WOW factor to win the hearts of buyers? Renovated bathrooms, and kitchens with open living areas that flow to an outdoor entertainment area, can greatly enhance the appeal of your home. These are certainly features that buyers look for, but ultimately it still comes down to price – they might be willing to pay a little more, knowing they don’t have work to do, or less if they need to factor in the cost of renovations.
That said, go easy on the styling of your renovations and keep kitchens and bathrooms neutral to ensure you appeal to as wide a range of buyers as possible. Buyers need to be able to visualise themselves living in your home and will want to stamp their own style and personality onto the décor, so if you over-pimp these essential rooms, you could lose yourself a lot of buyers. Nobody wants to pay for newly renovated kitchens and bathrooms with expensive fittings they just can’t live with and will need to replace. Back to the price : value ratio.
Making sure your home is de-cluttered, cleaned, and well-presented is going to attract more viewers, assuming your photos look great, and create more interest. More interest leads to competition, which in turn can lead to getting you a better price, so it’s certainly worth investing in the visual appeal of your home before you sell – but balance what you are spending with the estimated sale value.
You’ll find some helpful tips on preparing your home for sale, along with contact details of trusted partners who can help you, contained in our blog; https://whitehaus-realestate.com.au/2021/12/list-now-launch-later/
Take Ownership of the Process
Before you even engage an agent, get yourself familiar with recent sales in your area (say, for the last 6 months) and get out to open homes of properties on the market. It’s one thing looking at photos, but actually viewing homes in the flesh really allows you to make a more accurate comparison with your own property. It’s also worth getting along to a couple of auctions to gauge the amount of interest and see how many people are bidding, as agents will put a positive spin on the outcome post-auction. You need to see it for yourself.
Putting this time into researching your local market is invaluable, and let’s face it – this is likely the most important sale you will make in your lifetime – or at least one of them. You want to be fully informed, and when you start to interview agents, you’ll get a much better feel for who is giving you the right advice. And yes, you should always research a number of agents in your area and interview your shortlist. Don’t be tempted to go with a friend, or the agent who sold you your property, just because you know them and feel obliged, or because it’s the easiest thing to do.
You’ll find some useful advice in our Real Estate Report on appointing the right selling agent. https://whitehaus-realestate.com.au/2021/12/welcome-to-your-december-report/
It’s easy to get emotionally involved in the sale of your home, so having a skilled and experienced agent to guide you through a thorough market analysis will help you look at your property objectively and get it priced right from the start! In the end, the price you’ll receive will be what a good agent can negotiate from a genuine buyer.
