As any real estate agent knows, even in a red-hot property market, common issues can have an impact on the sale or jeopardise the sale outright. Some problems or issues may need repairing while others might call for an upgrade, either DIY or professionally done.
If you’d like to help your vendors identify what areas to focus on, here are some key things to consider, according to experts*.
Getting into the buyers’ mindset
When trying to showcase a property in the best possible light, it’s crucial to get into the buyers’ mindset and view the house through their eyes.
What’s the property’s current condition, both inside and out? What can its future potential be – and will buyers be able to see it? Does it feel comfortable and clean, ready to be moved into? And, if not, what can be done to improve it?
Unless they’re looking for a fixer-upper, most buyers want a home that’s ready to move into right away, and certain problems may put them off or provide leverage for negotiating the price downwards.
First impression counts
First impressions matter in everyday life, and even more so in real estate. How the property presents to potential buyers can mean the difference between them scrolling past it or placing an offer.
From boosting the property’s curb appeal through to decluttering, cleaning up, getting rid of pet odours, and using professional home staging, there are many steps your vendors can take. And this extends beyond what’s inside the home: effective real estate marketing also goes a long way in getting in front of the right people, the right way.
Click here to learn how our ‘Advertise Now Pay Later’ finance tool can help your vendors fund the marketing costs of their home.
Repairing and upgrading: how much is too much?
It's not always simple to decide how far to go with a pre-sale makeover. In some cases, a new lick of paint and some minor repairs around the house are sufficient. In others, the kitchen or bathroom may be overdue for a remodel.
Here’s a good rule of thumb: repairs keep the property’s value from falling, while upgrades can boost the value. In other words, it’s important to fix anything that’s broken – big or small. As for renovations, it often pays to give the property a spruce up before putting it up for sale.
Sometimes, the choice between simple fixes and a more comprehensive renovation comes down to budget constraints, but it doesn’t have to be the case. With our ‘Renovate Now Pay Later’ finance tool, specifically designed for property vendors, they won’t have to fund their renovations out of their own pocket: we can provide the funds to make it happen.
Some key issues to focus on
Here are some common issues that, if left unchecked, may make a property less desirable – or even unsellable.
· Lack of natural light – Buyers want plenty of natural light. A lick of white paint, an extra lamp or two, and some large mirrors can easily brighten things up.
· Outdated or malfunctioning house systems – Some issues (like malfunctioning or outdated water tanks, heat pumps or electrical systems) are likely to turn up during a buyer’s builder’s inspection, so it’s a good idea to fix them before the property goes to market.
· Exterior issues – From roofing through to decks, paint, landscaping and fencing, exterior home repair and maintenance is key to preserving the quality of a property and buyer appeal.
· Water damage – Buyers are wary of leaky homes and will look for signs of dampness and water damage, so as pricey as it may be, it’s important to do remedial work before listing the house.
· Outdated kitchen or bathroom – An old kitchen or bathroom that doesn’t fulfil modern-day function requirements can be a deal-breaker. With a well-thought-out renovation, your vendors can turn an eye-sore into the highlight of the house. And by focusing on low-cost, high-impact projects, achieving that fresh look doesn’t have to be expensive.
· Unconsented work – Unconsented work can immediately reduce the potential buyer pool, as it affects access to finance. There may be buyers, but their offers might be low-ball. That’s why it’s important to address it early on and get the consent sorted out.
Like to maximise your vendors’ opportunities?
At Lifestyle Finance, we specialise in helping New Zealand real estate agents and their vendors maximise their opportunities in the market, with our ‘Pay Later’ finance options for real estate marketing and renovations. Give our team a call on 0800 100 265 to get the conversation started.
*Sources:
Canstar, Stuff, Opendoor, Houselogic
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance