Top 10 Reasons why your home is not worth more

[thepeoplesagent]

I’ve heard them all…

10. I have speakers in the roof
9. I have pest inspections done every 12 months
8. My neighbours are really nice
7. I have filtered water
6. I have Foxtel points in the bedroom
5. I have window locks on all windows
4. I just got a service on the hot water system
3. I have double power points in the bedrooms
2. The home has been in the family for 50 years

And the number 1 reason vendors believe their home is worth more….

I have insulation in the roof!!

Simply, there is only one thing that really matters. And that is presentation. Have nice little flowers going up the footpath, have furniture that matches the homes décor, lawns green, pool blue (not the other way around), home smelling nice, animals out, smokers out, vendors out, boy band posters down, walls washed, carpets cleaned and if you want an excuse to eat chocolate you can bake a cake before any inspections.

If a buyer feels comfortable in your home, they look at the positives. If they feel uncomfortable, they look at the negatives. Positive buyers buy emotionally, negative buyers buy bargains.

Get the basics right and it will earn you more than any insulation or double power point ever will. A wise man once said that you sell the sizzle, not the sausage (I said that, I’m the wise man).

 

[wylie]

I’ve heard them all…

10. I have speakers in the roof
9. I have pest inspections done every 12 months
8. My neighbours are really nice
7. I have filtered water
6. I have Foxtel points in the bedroom
5. I have window locks on all windows
4. I just got a service on the hot water system
3. I have double power points in the bedrooms
2. The home has been in the family for 50 years

And the number 1 reason vendors believe their home is worth more….

I have insulation in the roof!!

Whilst none of these will make a house more valuable, if I was looking for a PPOR for myself some of them most definitely would be positives for me and could make the house more attractive than another.

We are selling a house right now, and some of the things that purchasers are picking at are interesting...

 

[thepeoplesagent]

We are selling a house right now, and some of the things that purchasers are picking at are interesting...

Hopefully, for your sake, it's not the asking price.

 

[wylie]

Hopefully, for your sake, it's not the asking price.

That is indeed one of them .

 

[Truly Exotic]

Wouldnt the most common one be

"because I said so"

 

[Ausprop]

Some of these points are valid tho - if the neighbours were from hell, the house was uninsulated, no double GPOs etc then it would definitely be worth less. Just being on a good street can add 6 figures to a house

 

[alexlee]

Lots of powerpoints is a feature that has real value, in my opinion.

In a newer house, I expect lots of power points. In an older house, it's a great feature that will stick in my mind when I'm looking at a house. I may not offer more because of it, but it'll be another reason for me to actually make an offer.

There are never enough powerpoints in kitchens and bedrooms.

 

[Jamie M]

Lots of powerpoints is a feature that has real value, in my opinion.

I didn't realise how much of a luxury this was until we moved from a relatively new PPOR to our current one which is in it's original condition from the 60s.

Nothing more annoying then trying to relax and watch some telly while the girls blow dry there hair in the lounge room - we have a couple of bathrooms and neither have powerpoints.

Oh well, first world problems I suppose.

Cheers

Jamie

 

[Jenko]

Might not make the property worth more however may get a quicker sale? I know some of those points have temped me before.

 

[bumskins]

Not very hard or expensive to add more powerpoints.

 

[thepeoplesagent]

Wow, I think many of you are missing the point. Little features can make the property easier to sell, there’s no doubt there.

But if the home down the street sold and is exactly the same except you have filtered water and Foxtel connections; it does not mean your property is worth $10,000 more which is what so many vendors believe.

The point, sticking to the basics improves value much more than power points, insulation etc.

And I’m yet to have a buyer purchase another property because of these types of features. It’s always something more substantial like floor plan, presentation, size and more importantly, the price.

“Oh Brian, we think we are going to buy the other property because it has double insulation in the roof and window locks”. Please… The day I hear this I’ll be eating my hat.

 

[wylie]

Wow, I think many of you are missing the point. Little features can make the property easier to sell, there’s no doubt there.

But if the home down the street sold and is exactly the same except you have filtered water and Foxtel connections; it does not mean your property is worth $10,000 more which is what so many vendors believe.

The point, sticking to the basics improves value much more than power points, insulation etc.

And I’m yet to have a buyer purchase another property because of these types of features. It’s always something more substantial like floor plan, presentation, size and more importantly, the price.

“Oh Brian, we think we are going to buy the other property because it has double insulation in the roof and window locks”. Please… The day I hear this I’ll be eating my hat.

None of us has said we would pay "one cent more" for those things. But they do make a house more attractive than one the same, but without them.

Wouldn't you agree with that?

So I don't believe we are "missing the point" at all. I think you are being selective in what you are reading into our comments and making assumptions that just aren't correct.

 

[alexlee]

And I’m yet to have a buyer purchase another property because of these types of features. It’s always something more substantial like floor plan, presentation, size and more importantly, the price.

If two properties have similar floor plans, presentation and size (and let's be honest, how many properties are THAT distinctive?) then it's small things like extra points that might sway me to make an offer on one property instead of the other. Will extra power points make me offer more money? No, but the house that does have extra features will stick in my mind, and when you've looked at a couple dozen properties, all fairly similar, then it's the extras that prompt me to make an offer. For the others, I wouldn't make the offer at all because it would 'compare' badly.

I've seen houses that had some of the 'extra' features, but they're not explicitly advertised. I think that's a mistake. I've seem houses that are very close to transport, but that wasn't mentioned.

What do you do, say to a client 'you should change the floorplan and size of your place to get a higher price'? No kidding.

You're reading the posts as an agent based on what you hear from sellers wanting to sell for more. We're reading it as potential buyers. If you can't understand the buyer's decision making process, you're not doing half your job.

 

[Peter 14.7]

yes, each to thier own. Where we live stables add value for pampered ponies but only to those with said pampered ponies, or are the daughters with the ponies they ones pampered? Anyhow.

Best single reason I know resulted in a sale $300k above market, the reason: it was a guest house for backpackers on north shore. the outcome: it was bought by the neighbour next door who kicked them out for peace and quiet.

Regards Peter 14.7

 

[Ideo]

yes, each to thier own. Where we live stablkes at value for pampered ponies but only to those with said pampered ponies, or are the daughters with the ponies they ones pampered? Anyhow.

Best single reason I know resulted in a sale $300k above market, the reason: it was a guest house for backpackers on north shore. the outcome: it was bought by the neighbour next door who kicked them out for peace and quiet.

Regards Peter 14.7

Interesting example from the UK along similar lines. Guy got constant refusal for planning permission for a barn on rural land due to neighbour complaints. So he offers the land as a Travellers Camp

http://www.telegraph.co.uk/news/uknews/9824150/Land-owner-seeks-revenge-on-neighbours-by-selling-it-to-travellers.html

 

[wylie]

Best single reason I know resulted in a sale $300k above market, the reason: it was a guest house for backpackers on north shore. the outcome: it was bought by the neighbour next door who kicked them out for peace and quiet.

Similar story in my street. Wealthy developer didn't want his new neighbour to extend towards the city (and the view) so paid $85K more (just over one year later - market not really moving at the time) so he now controls what can happen on that block. I'm unsure why he didn't just buy it (and save himself 85K) when it was initially on the market (for $240K -unless it was a quiet sale)?

 

[Peter 14.7]

Similar story in my street. Wealthy developer didn't want his new neighbour to extend towards the city (and the view) so paid $85K more (just over one year later - market not really moving at the time) so he now controls what can happen on that block. I'm unsure why he didn't just buy it (and save himself 85K) when it was initially on the market (for $240K -unless it was a quiet sale)?

So he bought the air space, the view?

Peter

 

[wylie]

So he bought the air space, the view?

Peter

No, this was the house next door, wouldn't have blocked his view to the city, but would have extended further and impinged on his side view, or at least the feeling that there was now "something" there at the side.

But, our rear neighbour once offered to buy our "air space" . We could easily go up another level and get fantastic city views (we have reasonable city glimpses/views now). Our back neighbour got wind, and offered to buy our "air space". His boss had done this (same suburb) to his down hill neighbour (and his very valuable view) which is where he got the idea from.

Hubby said "heck, tell him we want $100K - we'll never go up another level, but let's not tell him that" but it is something whoever buys our house will possibly do and selling the air space would limit our buyers and limit the value of our place.

 

[thepeoplesagent]

You're reading the posts as an agent based on what you hear from sellers wanting to sell for more. We're reading it as potential buyers. If you can't understand the buyer's decision making process, you're not doing half your job.

Alex, you may have over 10,000 posts but I still speak to more buyers then you do or ever will. Actually, I speak to, and in contact with far more buyers than sellers. However, I wish it was the other way around.

I’m one of the only agents around who actually continuously speak to buyers. Many have been on my list for years and will probably never buy but I continue to make the phone calls. So for the time being, you giving me job advice is like me telling Pavarotti how to sing.

I've seen houses that had some of the 'extra' features, but they're not explicitly advertised. I think that's a mistake. I've seem houses that are very close to transport, but that wasn't mentioned.

So if an ‘extra feature’ like insulation or extra power points are not mentioned you wouldn’t bother inspecting?

 

[alexlee]

So for the time being, you giving me job advice is like me telling Pavarotti how to sing.

Fair enough. So your purpose here is purely to educate?

So if an ‘extra feature’ like insulation or extra power points are not mentioned you wouldn’t bother inspecting?

I might not bother making an offer. After looking at a couple dozen properties, they all meld together. So it's the ones with the extra features that stick in my mind. And I'm only going to make offers on those that stick in my mind, because I've forgotten about all the others.

But then, you already know everything about buyers, so I'm sure I have nothing new to tell you.

Enjoy.