THE VALUE OF YOUR HOUSE IS WHAT?
Category General News
It’s not easy putting a price on your own home...and so many sellers go wrong. Listen to the expert opinion on how to get it right. No, it’s not an exact science, but experience really counts
Let’s talk about selling your house right this minute. We all know the property market is a little tough, so should you be trying something different, thinking fresh thoughts? Or should you just go back to basics, and do them really well?
Although every area, even every area within an area, has its own statistics, nationally, it currently takes around 16 weeks on average to sell a house. That is, if it’s priced correctly. Obviously some sell faster than others, but it’s a case of ‘no need to be overly concerned’...until it’s taking longer than your area average.
Let’s start at the beginning...
You and your estate agent
Preparing to sell.
We are all so familiar with our homes, we can’t see the wood for the trees. We’re used to that stain on the ceiling, that grubby wall, dog-hair on the carpet, but those maintenance and cleanliness issues must be attended to if you want to achieve the maximum figure. While you think that stain will cost a mere R2 000 to sort...the prospective buyer is either put off your property by its lack of maintenance (“what else has this seller not paid attention to?”), or he estimates the repair by multiplying that R2 000 by 10...just to make sure he’s covered. Every one of those little things adds up to the amount he’s silently totting up in his head, and then subtracts off your asking price.
Most agents will tell you NOT to redo kitchens and bathrooms, because your taste is very likely to differ from the buyers, plus you cannot add those costly renovation figures on to your sale price. Buyers expect kitchens and bathrooms, so just because you’ve recently refurbished them, you can’t factor them in as costly items. But you can clean up dated ones, apply fresh paint, remove the stain on the bath caused by the dripping tap...and while you’re there, replace that washer on the tap.
Look at your house through the eyes of a stranger.
As Myles Wakefields, CEO of Wakefields Real Estate, says, “Don’t give prospective buyers any excuse to drop your price. Ideally, what you want to hear are the magic words, “There’s not a thing to be done to the house.”
Do your own homework first.
It’s useful to know what your neighbours’ asking prices were...but it’s only really useful to know what price they achieved. If you can source that information for similar properties, it’ll give you a good starting point. But remember, there are seemingly small details which makes your property a different proposition from the one two doors down. One faces north and is filled with light and sun...the other isn’t. One has freeway noise...an identical house further along the road doesn’t? It will affect the price. Compare your house with a comparable one.
X-ray your area, x-ray your house.
Calling in an agent or five.
You’re ready to sell, and you want to call in an agent for a valuation. Do you call in a range of agents? Most homeowners do, believing more is merrier. A seller usually feels they’ll get a fairer spread of independent opinions on the market value of their home.
Myles Wakefield offers a word of advice: “It’s not a tender. So many sellers view it as such, but that’s not the case...nor should you view it as such. This is no bidding war. You want a professional opinion on an achievable price, but in addition, there are other things you should expect.”
What can you expect from your agent?
In the end, you’re unlikely to simply go with the agency who offers you the top valuation, unless you connect with that person. This house is your major asset and it’s your home – you need to work together with somebody you like and believe in.
You want to choose a brand with a track record you respect, and an agent with whom you establish a rapport. Key to that relationship is honesty. You want that person - as tough as it sometimes is to hear hard facts – to be straightforward with you about price, detractors, and so on.
You must ask your agent a few questions, like...
How did you reach that price? You want a document detailing local sales and prices reached.
How long does the average home take to sell in my area?
What is your marketing plan?
What are the plusses or drawbacks of my home?
Insist on regular feedback. If your house has been on the market for months and few people have been through, ask why. If it’s been on the market and many have been through, but no offers, ask why.
How can you facilitate the sale?
Be open with your sales consultant. Tell them whether you need to sell in a hurry, or whether you don’t mind how long it takes. Let them have a snapshot of your life – it’s far easier for them not to operate in the dark.
Give that person easy access to your home.
Present it well when the agent is bringing a client.
Be comfortable with honest feedback – don’t ask for it, then be uncomfortable when it’s given.
Worth bearing in mind
Picture a pyramid. The wide base is Location, the middle is your property Size, and the top, the Finishes. No matter how superb your finishes, how vast your property – both of those able to be altered – you cannot alter your location or the value of that location.
Location. Location. Location. is crucial to pricing your home, so when considering selling, take care with adding on rooms and installing five star finishes...if the location isn’t five star too. Balance it out.
Author: Anne Schauffer
