2020 is going to be the worst year for many sectors. Real estate got the biggest hit in the last 6 months. Prices of real estate are plummeting to abyss every day and for those, who invested their savings in the real estate market, it is more like a nightmare. If you are not selling the same house, you live in, you will find yourself in a pretty awkward situation because every buyer in the market is looking for golden goose at the price of a chicken. In other words, prices of real estate are diving in trenches not because of a lack of buyers but because of the misconception of buyers. COVID-19 gave rise to misconception in buyers that prices of real estate are going down and very down and this misconception is not allowing buyers to evaluate the prices logically. No one is going to sell their properties on a 25 – 30% discount. Not even a 10% discount. But still, a property needs to be liquidated at the right prices. Getting into the psyche of the buyer is most important and here are the key points, you should summarize well before putting that “On Sale” signboard on your property.
- Every buyer is looking for the best value for their money.
- Plus, they are looking for add-on value for their social status.
- Every buyer has his plan for the property and will change the property accordingly.
- Every buyer is also looking for inherited family value that comes with a property.
- Maintenance of property is a key factor where a buyer does a lot of math.
- The “Yes” number lies somewhere between Social value, property value, maintenance cost, and future growth. These four factors are four corners of a rectangle and and “Yes” number may be anywhere in the area of this rectangle depending on the persona of each buyer.
- The family of a buyer plays a very important role in buying decisions. No matter who is looking like in charge, but at the end of the day, it’s the family.
Looking like a lot of psychology lessons? Well, you can play around with some simple tricks and get the deal done in your favor. Here are a few ways to increase the value of your property without spending a lot.
Do market research – The first and best way to evaluate your property is by looking at other properties and their comparative valuation. See, what they are asking and for what? It may be lot size, constructed area, facilities, locality, proximity to basic amenities, quality of construction, family sentiments, architecture, or just plain coziness. Be analytical before setting up your asking price. A house has its unique personality and it is the personality of the house that will fetch its value.
Start with Entrance – The look of your front door and entrance play heavily into the overall curb appeal of your home. First, 60 seconds inside the property are very important. As visitors enter, the front door connects your home with the world outside and is part of their first impression. Entry doors are architectural components that should complement your home’s overall design, not detract from it. If your existing front door isn’t up to par, head down to your local home improvement store for a more energy-efficient and attractive replacement. Whether you choose a solid wood door or one with decorative stained or cut glass panels, a welcoming entrance will increase your home’s bottom line. Add a few decorations on the entrance. It may be a plant, a laurel, nameplate, or a simple canvas print, but it should match with the persona of the house.
Focus on Kitchen and bathrooms – A great room to update for less than $300 is the master bathroom. The two rooms that benefit most from even small renovations are the kitchen and bathroom. One cost-effective change — like replacing an outdated vanity, old plumbing, and lighting fixtures or adding a new tile floor — will guarantee a lot of bang for your buck and give your bath an updated, modern look. The same rule applies in the kitchen. You don’t have to start from scratch to create a winning recipe. For maximizing your home’s value, kitchen updates are key. Start by swapping out just one item, such as a stained sink or ancient microwave for shiny new stainless models. Even small kitchen updates will add big value to your home.
Get rid of anything extra – Don’t be a hoarder. Get rid of anything that does not fit in the theme of the house. It might be an electrical appliance, a tap, a light bulb, or a rough carpet. Lock your sentiments in a truck and throw the key inside Mount Etna. You don’t need a hundred things to increase the value. Only 20% of things add value to the house, the rest of 80% is just an emotional backpack. Get rid of it.
Spend a little money on cleaning and polishing – This is very important. The old saying that you only get one shot at a first impression is true. So, make the interior of your home shine from the moment someone walks through the door. For less than $400, hire a cleaning service for a thorough top-to-bottom scrubbing. Even if you clean your home regularly, there are nooks and crannies that you may miss or overlook. Let a cleaning service do the dirty work to make your home sparkle. Hire a professional cleaner for a day. They will show you how to clean and organize various rooms in your home and teach you tricks for keeping it that way. How does this increase your home’s value? Simple — a clutter-free home appears cleaner and larger, which is more attractive to home buyers and therefore more valuable.
Visually increase your home’s square footage – The size of your home dramatically affects the value, but square footage isn’t the only space that counts. Visual space or how large a home feels also counts. The key is to make each room in your house feel larger. Replace heavy closed draperies with vertical blinds or shutters to let light in — a sunny room feels larger and more open. Also, try adding a single large mirror to a room to visually double the space. Finally, clear the clutter. The more clutter, furniture, and plain old stuff you have in a room, the more cramped it will feel. For less than $400, add an attractive storage unit to an underused space and store your clutter out of sight.
Add family value to the property – Personality of a house is a direct result of its owner’s personality. And it evolves with time. That’s how antiques play an important role in the value of a property. Of course, you are not going to invest a fortune on antiques so let’s get a little closer to antiques by adding heirloom lookalikes. Canvas arts are the best way to do so. They come in all sizes and do not cost a fortune. Other alternatives are framed posters, personalized pillow covers, and wall-mounted decks. Here is a unique store for all those items. They have great quality, competitive prices and they offer a discount if asked nicely over mail. More than anything, they can design unique artwork only for you without any additional cost.