People who plan to sell their house are all faced with the tough decision of which parts to renovate and which parts they can leave as is. To help you with your decision, consider these 4 marketing terms and how you can apply them to your house selling.
1. Law of supply and demand
The first thing to consider when putting your house up on the market is the temperature of the real estate in your neighborhood. As the law of supply and demand tells us, if the demand for a certain good is high but the supply is low, the value of that good will increase. If a lot of people are looking to buy in your neighborhood, but there arent a lot of houses listed, then perhaps you can get away with fewer repairs. Conversely, if there arent a lot of buyers but a lot of sellers, then doing more renovations can make your house sell faster. In order to get a feel of the market temperature, talk to your Realtor because he knows it best. Visit this site to learn more about property valuations.
2. Selling point
Now that youve determined where your house stands in the market, it is time to make it more attractive to buyers. Houses get an extra edge over others depending on factors like location, aesthetic, size, etc. An old house situated near a school or a commercial area can sell faster even if the house itself is not in pristine condition. If you find that your house does not particularly have an edge over other houses, then you may want to consider using quality as your selling point. Pay more attention to renovations as they can make your house stand out from the rest.
3. Return on investment
The biggest factor that will affect your decision on what renovations to make is money. It is understandable if you dont want to spend too much, especially if youre already selling your house for a lower price than what you originally bought it for. Consider your Return On Investment (ROI) for this. Will the money you are spending on renovations return to you as a result of selling it for a higher price?
4. Cost efficiency
Now that youve considered all the factors mentioned above, it is time to go to the most important marketing term that will be applicable to your house selling. Cost efficiency is a marketing strategy that produces optimum results for the least expenditure. Make this your goal when preparing your house for sale. Youd want it to look the best, all while spending the least amount of money possible. The best way to do this is to concentrate on renovations that are immediately seen by the eyes.
At the top of this list is your houses paint job. If the paint is wearing off, repainting your house is the easiest and cheapest way to make it look new again. Second are the foundations, which include the walls, floors, ceilings, and roof. If you notice that they are affected by cracks, molds, or leaks, start by getting rid of them.
Another thing buyers look at is the plumbing. Leaky pipes and clogged sinks are an immediate turn off. Sprucing up the kitchen is also a plus, but this doesnt necessarily mean a full remodel. Replacing cabinets and broken appliances can already go a long way.
In conclusion, once youve analyzed the amount of renovations you think your house needs, execute this by being as cost efficient as possible. In the end, it is not the amount of money you spend that will matter, but by the manner of which you spend it.