Nashville Lifestyle Living | Monique Flores

 
How to Maximize Your Homes Value

"How To Maximize Your Home's Value"

 
I have been asked many times to share how home owners can showcase their home's strengths, realize its potential and maximize its resale value.
If you have thought of selling your house but you don't know where to start, this article will help you get started, develop a plan of action, and make the whole process of selling your home easier! Just follow the steps I have given you and watch as everything will come together for a successful transaction!
Here is a list of actions you can and should consider taking prior to listing your house that will allow you to sell your house for top dollar.
  • Identify your home's strengths and weaknesses. It is very important to recognize what areas of your house can be showcased and what areas need to be worked on. Here are some ideas: If you have a fantastic size yard, think of maybe buying some flower pots, a bird feeder, maybe even a portable fire pit, lanterns, etc. These items are very inexpensive and can go a long way towards adding character to a large yard. Remember it's all about how you feel when you walk into an area, whether inside or outside your home. On the other hand, if you have a very small living room area located in the front of the house as soon as you walk in the front door, declutter, make the room simple, and paint the room in a light, calming tone. In a small space, the less furniture the better, consider adding some candles, think of maybe converting the room into a different living space, like using the room as a "reading" room. You can change the room into a secluded, quiet and tranquil reading area. One of the things that buyers are looking for today are open floor plans, so if your living room or dining room is separate from the kitchen and family room area, many buyers will be turned away if they know the living room and/or dining room is separate from the rest of the home's living space. So, being creative is imperative. If you convert a room into an area that is meant to be away from noise and traffic it will be seen positively by potential buyers, and they will love it.
 
  • Look at your home as a potential buyer. Put yourself in the buyer's shoes. If you were house shopping, what would turn you off? What would you really appreciate? These questions are very revealing and will make the process of knowing what you need to focus on and what you need to showcase so much easier. A word of advice here, though! Be brutally honest with your assessment! Too often we will mentally defend things about our home, because we are too attached to them and their existence.
 
  • Develop your sales team. Interview prospective professionals that will be needed to help you sell your home for top dollar, including: a realtor, a real estate lawyer/title company, a contractor, a painter, an HVAC company and a home stager (optional). Ensure they know their business and they are a good fit for you. Make sure you get your HVAC unit serviced and provide your Realtor a copy of your service receipt so they can include it with your listing documents. This is all a part of being proactive and thinking ahead.
 
  • Do some home shopping yourself. This is the best way to learn about your competition in the area. After you have chosen a real estate professional, ask them to schedule some showings around your neighborhood so you can see the condition of the competing properties, and to get ideas that will allow you to set and have realistic expectations. If you see an "Open House" sign, make time to go and view what your prospective buyers has to choose from.
  • Learn about fair market value. (Your Realtor can help with this). There are 3 ways to determine fair market value in real estate.
  1. By getting a formal appraisal
  2. By getting a CMA report (Comparative Market Analysis)
  3. By finding out how much it would cost to replace the subject property
Getting an appraisal in advance is to your benefit and I often suggest this be done. This can give you a better idea of how to determine your asking price. Market value is determined through these steps. Let's say, hypothetically, if there have been no sales or very few recent sales in your area or community, I will strongly suggest an appraisal. A CMA is very reliable when there have been at least 5-10 sales that are comparable to your property, within the last 6 months or so. Some of the upgrades and/or money you have put into your house are taken into account, along with figuring replacement cost which involves estimating the value of the land and adding how much it would take to replace the structure.
 
  • Eliminate odors. Cigarette smoke, heavy spices used for cooking, incense, pet odors etc. need to be eliminated! These odors will most definitely turn prospective buyers away. It is important to take this step seriously and make a huge effort to make existing odors as undetectable as possible. Remember, there are 4 ways a house sells: smell, sight/visual appeal, the "feel" of the house and price. Buyer's senses are extremely important, what will they see, smell and feel when they walk in to your home and will their ability to visualize their family living in that home. If you have too much going on, this will create "noise in their head" and they will not be able to get past it. Keep it simple, neutral, well ventilated, bright, be reasonable on the asking price and your house will sell!
 
  • Learn what the motivation is behind the prospective buyer that is interested in your home. If you know the motivating factor you can leverage this and get top dollar for your house. Some buyers are purchasing a home as their "forever" home, some are downsizing, and have recently become "empty-nesters", some are looking at your property as a rental investment, etc. Again, the more you and your realtor know, the better equipped you are to optimize your home's resale price. After-all, it's all about the negotiation tactics you and your Realtor will use to negotiate the contract.
 
  • Curb appeal and landscaping! Little things go a long way. Improving your landscape and your home's "curb-appeal" is one of the best investments you can make to enhance the value of your property. This will allow you to sell for top dollar. Spruce-up your entry-way, cut weeds and trim overgrown vegetation. If it is spring, summer, or fall, consider adding some color in the form of flowering plants in your flower beds or in flower pots in strategic locations. Take a good look at the painted areas outside your home. If they are dirty, faded, or chipping-off, a good pressure washing and/or a fresh coat of paint can work wonders! Remember, you don't get a second chance to make a good first impression!
 
  • Consider changing out lighting fixtures and plumbing fixtures. This is very important. If your lighting and plumbing fixtures are "dated" or too "stylized", you should consider replacing them. You don't need anything fancy but if you have leaking faucets or rusty hardware, I suggest you change them out also, because, most likely, the prospective buyer will request you do so anyway. If you wait for them to ask for you to do it, it automatically gives them power to negotiate for a lower price. You need to have the upper hand in negotiation to get top dollar. If you do this work before you start showing your property, you have a huge advantage on staying firm on your price.
 
  • Tidy up and organize spaces that might confuse potential buyers. This is very important because your goal should be to allow your potential buyer to visualize themselves in your home. If it is messy or cluttered or areas are not well defined, this could create an obstacle in the mind of your prospective purchaser. You want to make it as easy as possible for your prospect to visualize their furniture in and their family living in and maximizing the use of every area of your home. Make it easy for them to do just that!
 
  • Repaint using neutral tones. Repainting in light or neutral colors will make spaces look larger. It will give a sense of cleanliness and a feel fresh to your home. It will allow for the buyer to more easily visualize their furniture in rooms painted with light neutral tones. Just remember, those bold tones that you chose when you decorated your home originally, could be a turn-off to a prospective buyer.
 
  • Detach emotionally from the property and be strategic when setting an asking price. It is very important not to set your asking price based on your memories, experiences or emotions. Our home is our sacred space and it is very special and personal for us on an emotional level, but unfortunately, this cannot be considered when negotiating an offer or determining an asking price. Be objective, take your competition seriously and be open to hearing and taking advice from your real estate professional.
 
  • Declutter. Begin boxing up the things you do not need or items you do not utilize on a regular basis. PODS (Portable on Demand Storage) are always a good option if there is an out-of-the-way area to store the unit without blocking driveways and/or entrances. There are some PODS providers who will pick-up and store a loaded POD off-site for you, until you are ready to have it delivered to your new residence. You do not want to load unneeded boxes of "stuff" in your garage or attic, since it will tend to make those spaces look cramped and smaller than they really are. And finally, donate or sell items you have not used in the last couple of years. What you no longer need can often be a welcome addition for someone else!
 
Monique Flores Luxury Realtor