Real Estate – 12 Things You Need To Know

I. A Home Is Only Worth What the Buyer Is Willing to Pay

You might assume that all the effort and time that you have put into your real estate prior to listing it, or even what you previously paid for it, makes it worth a particular price. You might even have an appraiser come in prior to listing and say that it’s worth close to a price you like.

The reality, however, is that it’s only worth what a buyer is willing to pay for it. The buyer may think that the upgrades don’t actually match up with the asking price. It could be that renovations are necessary and the asking price is simply too high to justify making the purchase only to have to pour more money into it immediately.

A buyer would rather buy a house at $125,000, put $25,000 into it, and have the property be worth $180,000 rather than buying a home at $180,000 that requires the same work of the home that’s worth $125,000.

II. Upgrades Might Not Increase the Real Estate Value but Can Increase Its Chances of Being Sold

It’s perfectly normal to hope or think that you will get back everything you spend on a home renovation. The reality, however, is that you will likely only get back a percentage of what you spent. Different home improvements usually offer different amounts, and that amount can vary depending on where you live. The personal taste of the buyers and the quality of craftsmanship are other factors.

III. Cleanliness is King

No house will ever be perfect, especially if you have a dog in the summer. Still, you need to make an effort to keep the home as clean as you can during showings and listing photos. You want prospective buyers to remember what they love about the house after leaving instead of talking about how much of a mess your home was.

IV. Curb Appeal is the First and Strongest Impression

First impressions matter a lot. It’s hard for a person to change their mind after a bad first impression. Look at the front of your house and ask yourself whether you would be willing to buy it if you were a stranger. In case you are biased, look next door. What about the neighbour’s house? Would you be willing to buy theirs? If not, imagine if they were to make it more presentable. Would you buy it then?

Remove the children’s toys from your front yard. Hide the recycling bin and trash cans. Trim the bushes and mow the lawn, especially before having professional photos taken! However, keep maintaining the lawn for showings, and the chance that somebody might just drive by and notice the “FOR SALE” sign in your yard. Ensure that all shutters are still attached if you have them, and if necessary, apply a fresh coat of paint on them. You also shouldn’t forget to pressure wash.

V. Clutter and Pet Odor Leave the Longest Lasting Impressions

Just because you love your pet, it doesn’t automatically mean that everybody else does. It can be hard to erase every piece of evidence that they exist in your home. Regardless of the number of times that you vacuum, you will likely still miss a pet hair. Just make an effort. You can also hide their food bowls and bedding, if possible.

Pet odor can be extremely hard to hide, especially if you have a senile dog that has a bladder problem or a puppy that’s learning how to be potty trained. It might be worth your while to replace the flooring, or perhaps even offer a flooring allowance in the deal. For now, however, consider sticking a few air wicks in every room.

VI. Neutral Decor and Paint Always Appeals to the Masses

Get rid of those purple accent walls and dark colors now. That will likely stick out like a sore thumb in your listing photos before a prospective buyer even schedules a showing of your home. The thought that will likely be running through their mind is, “How many coats of paint are needed to hide that unappealing color?” Neutral is always in and minimal décor is always best. So, go ahead and pack any unnecessary extra décor when looking to sell.

VII. Cheap Updates or Fixes Will Result in Low Real Estate Offers

If you are unable to afford to update the entire house, don’t. Attempting to cover everything will result in cheap updates the prospective buyer will likely want to have redone. If nothing else, as previously stated, at least a fresh coat of paint. A fresh coat of paint for the whole house is never wasted money as long as it’s a natural color.

VIII. Everything is Negotiable in Real Estate

Just about everything is negotiable. The refrigerator might seem like the biggest thing that buyers want or sellers note that it can convey with an acceptable offer, but numerous other items have been negotiated. Furniture, curtains, curtain rods, blinds, even tractors. Still, it’s important to ensure that negotiations are done right and properly documented in the contract.

IX. Time Matters a Lot

It is currently a seller’s real estate market, which makes it the ideal time to list your home if it’s something you have been considering. Properties can barely be put on the market before a contract is put on them. That said, time is of the essence for buyers. For example, in the time of a housing crisis, sellers may have a harder time finding buyers.

If you find a house that you love, you should put an offer in right now, and make sure that it’s good. You simply don’t have time to waste going home and sleeping on it or talking about it. That property might not still be in the market when tomorrow comes. Rent to Own could be an option to secure the property you really want until you can save enough to qualify for a mortgage.

X. Real Estate Location

Location is a very important real estate consideration for a variety of reasons. First, you cannot move a home -at least not easily or even inexpensively.

A home in a good location is usually a solid long-term investment. It’s generally advisable to buy the worst house – real estate that needs some work – on the best block. Why? Fixing up a home in a great neighborhood gives the best return on investment. Simply put, it will be much easier to sell at a later date.

Alternatively, you can buy a beautiful home that does not need any work. However, if the block is either plain bad or just sketchy, you may find it hard to sell the property at a decent price.

XI. Real Estate Buyers Take Note of Things They Want to Change Before Noticing Any Updates

Like previously mentioned, it’s just about impossible to please everybody. You might have spent $10,000 on a remodeled master bathroom and $30,000 on an upgraded kitchen, but a prospective buyer may be groaning since they are not looking forward to having the carpeting ripped out and the hardwoods laid. Or, they simply might not like your ideas for the renovation.

A fail-safe move that you can make is to allow a paint allowance or flooring allowance, therefore you aren’t wasting the money while getting ready to sell and the buyer can pick out their preferred details.

XII. If Properly Priced, It Will Sell

You might be in a hurry to sell and price might not be your main concern, but you still need a baseline to start marketing the real estate property. One thing is for sure: Pricing is perhaps one of the biggest decisions when it comes to the selling process.

If you set the price too high, you risk turning off prospective buyers. It also means that the property won’t compare favorably with other similarly priced homes. Worse still, buyers might not even see your listing after searching online because they will be using lower price points.