How to Increase your Property Value?

Posted on Monday, June 08, 2009
Filed under Mortgage · Add Comment
First, know what is the term “price” and “value” literally means in a Real Estate perspective.
 “Price” is something you ask for an amount, either $3,000,000 or $300,000 property price tag. While “value” is what the buyer perceive about his/her property, which includes location, condition, purchase option, etc.

If sellers want to increase their property value, they must concentrate on every detail about their property for a chance of attracting qualified buyers who are willing to take the price.

What are those details? Below are tips you can achieve for a chance in increasing your property value.

  •     Open floor plans make a room feel bigger than larger spaces with smaller rooms. Showing property that is furniture free, or at reduced clutter, helps to make the space feel bigger.
  •     Property is easier to show and easier to sell, and quicker to take possession of when it is vacant at the time it is offered for sale. Evidence of problems to take possession of the property -- such as encroachments, or tenants who wont allow buyer tours -- negatively impact value. Vacancy also helps the buyer walk through the property imagining ownership. Sellers should remove personal trinkets and family pictures as well as being conveniently absent during a buyer tour.
  •     Cosmetics are important.
  1.     Fresh paint will always add more value than it costs.
  2.     Clean or new carpet/flooring adds more value than it costs.
  3.     Landscaping adds more value than it costs. At the very minimum, make the entrance area neat.
  4.     If you can, add some colorful flowers and new sod.
  •     The spot on the ceiling from the roof leak takes thousands of dollars from the perceived value and the offer price.
  •     Do a seller's home inspection to identify and fix the problem before closing a deal. No point holding up your check a few extra days; plus a failed buyer's inspection could cost you the sale. Buyers will often bargain down your asking price to accomodate for property condition and repairs.
  •     If you can, remodel/update the kitchen and master bathroom. These two areas have a big impact on home buying decisions.
  •     Don't spend more money to renovate the place than you can recapture in value on the sales price.


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