Selling a home is identified by many people as the most stressful and unpleasant experience they have ever been through. Are you ready to make that decision? Have you conducted sufficient research? Have you put a viable plan and budget in place? Do you know how to get the best return on the money you spend upgrading or renovating your property? Do you know what to expect when your home is on the market? How will you maximise your marketing budget?

These are all questions that many people do not consider before they make their decision to sell. Comprehensive preparation tips covering room by room berm to backyard are available in “Preparing your Home to Sell’ however before you spend all your time and money on renovations or redecorating you must start with the correct planning and deal with the process before you deal with the product.

You ultimately want to produce a property capable of reaching its full market potential (within your budget and time frame requirements), plus you need to understand the basic sales process and the importance of presenting your property correctly to potential buyers.

Your goal should be to sell your property in the shortest possible timeframe and for the best possible financial gain – these tips are designed to reduce your stress and help you to achieve that goal.

Before you spend any time, energy or money preparing your home for sale you must do some thorough research and planning before you make your decision to make any upgrades or to sell.

TIP 1

The real estate market behaves in cycles. When there are too many properties for sale and not enough buyers it is referred to as a buyer’s market and when there are too many buyers and not enough properties it is a seller’s market. Establishing where the market is at the moment or where it may be heading in the timeframe when you intend to sell is essential before you make any planning decisions.

TIP 2

As soon as have decided to sell, seek the advice of an experienced real estate professional or valuer who knows your neighbourhood.

TIP 3

Start tracking sale prices that have been recently achieved for homes in your street and immediate neighbourhood. This range indicates the spending limit that buyers are prepared to pay in your area. If you price your home higher than the accepted range you will not be competitive and buyers will go elsewhere.

TIP 4

Watch your local newspaper, real estate publications and property websites closely and record the date and listing price of properties in your area. See how long unimproved homes stay on the market compared to improved homes.

TIP 5

Visit properties for sale in your neighbourhood, keep an eye on the sale price and try to determine why some homes sell for more or less than each other. Is it the recently remodelled kitchen done in neutral finishes? Is it the landscaped back yard? Is it the added-on ensuite?

TIP 6

Seek professional advice before you go ahead and make unnecessary or inappropriate upgrades or improvements to your property that may not provide you with a speedy or financially rewarding sale.

TIP 7

Don’t limit your research to the anticipated sale price of your property. Identify the type of buyer your home would potentially appeal to and compare that to the features and benefits your home offers.

TIP 8

Often people decide on home improvements based on their personal lifestyle – providing the work has not already been done you should consider who is ultimately likely to purchase your property before you undertake impractical renovations or decorating choices which simply will not meet the market demand in your area.

TIP 9

If your home and district could appeal to elderly buyers you should keep the décor relatively neutral; ensure the garden is low maintenance; include handrails on stairs and easy and safe access from the garaging. For young families secure fencing; good storage and extra bedrooms may be worth considering. For older family groups, additional parking and increased bathroom facilities are popular. Professional couples may be attracted to extended entertainment areas (such as decks); low maintenance properties; enhanced security systems and modern décor.

TOP TIP 10

If you ‘fail to plan’ then you will ‘plan to fail’ and as your home is likely to be your biggest asset, failure to plan could mean a lifetime of regret.

TIP 11

If you list with a real estate company you should ensure you choose an experienced agent. Be careful about choosing friends or family if it’s only for that reason. Top performing real estate agents don’t pursue just the easy sales, but they do list to sell. A successful sale provides them with on-going business and satisfied clients – that’s why they are top performers.

TIP 12

A top performing agent may not have a large number of listings, some concentrate on a small number of properties and put their entire efforts and concentration into these properties.

TIP 13

Consult people who have bought and sold property in your neighbourhood. Word of mouth recommendation is a strong tool and a useful guide to establish performance.

TIP 14

If you decide on a particular real estate company (rather than an individual agent) you should make an appointment with the manager and establish who their most experienced agent is specialising in the type of property you own. You should not accept someone just because they are in the office at the time of your visit or phone call.

TIP 15

A professional agent will turn up to appointments on time, regularly communicate with you, return phone calls promptly and efficiently, be well presented and polite, take a genuine interest in your situation, provide accurate and regular reports on sales progress, be well-versed in anticipated marketing & advertising results, be a good negotiator, and have a genuine interest in obtaining the best deal for you.

TIP 16

Local knowledge and experience are essential. If you select an agent who has sold a number of properties in your neighbourhood, chances are they will already be familiar with local matters and have the answer to many questions potential buyers may ask.

TIP 17

Do not rely completely on an agent’s local knowledge – you should supply as much accurate information as possible about your property and the local district. You live in the home and understand all its features & benefits – particularly those which are not visually obvious in the initial inspection. You may also know about recent changes or enhancements to your district.

TIP 18

Always remember that you have the most to win or lose when you sell your property (not the real estate agent) so take part in the process. A good agent will guide you through but make sure you fully cooperate and give them the tools and the support to achieve a successful sale for you.

TIP 19

A home is likely to be the biggest and most important asset you own – it is essential you obtain the very best professional assistance. Unless you are completely convinced of one agent’s ability to secure a successful sale, you are well-advised to obtain listing proposals from three different companies.

TOP TIP 20

Make sure that you get along well with the agent you choose. This person could be visiting your home and talking about your personal affairs for weeks or months, and it is important that you trust his or her advice, and can rely on the service they provide.

Pricing

TIP 21

Correct pricing reduces the time you are on the market; you will receive a better response to advertising; generate more potential buyers; compare well with the competition; attract genuine offers; provide a true valuation making buyer finance achievable and will definitely reduce your stress levels.

TIP 22

If you intend to carry out any major renovations and you think they will add considerable value to your property, engage the services of a registered valuer before you start and ask for a ‘before and after’ valuation before you start on the project.

TIP 23

Decide on the price you are prepared to accept before you begin the sales process. If you think your property is worth far more than the professionals tell you it is worth then maybe you would be better off not to list for sale until you can realistically achieve the price you want or need.

TIP 25

Unfortunately all the wonderful memories you have of your home cannot form the basis of the selling price. This is only possible if you sell to a friend or family member who has shared those memories.

TIP 26

Motivated buyers are actively and regularly watching for properties that are new to the market. If you advertise your property for an unrealistically high price it could be dismissed by these keen buyers.

TIP 27

If you go to the market with a high price and then reduce this during the campaign not only have you wasted your advertising budget but you also risk that the potential buyers who initially dismissed your property because it was too expensive, may now think there is something wrong with it because it has failed to sell.

TIP 28

If you get an offer within hours or days of going onto the market your first reaction may be ‘we are selling too cheap’ and you may not accept that offer. Sometimes, the first offer is the best offer you may get, and subsequent offers do not match up, so make sure you research your pricing decision well.

TIP 29

Everyone thinks that their property is better and offers more than any other property on the market in their area. The reality is that comparison is the benchmark and buyers are weighing up what your property has to offer compared to the other properties on the market and ultimately price is often the deciding factor.

TOP TIP 30

Position, Price and Presentation are major factors determining the ultimate sale price. You set the asking price, however the buyer ultimately determines its true value. Good presentation will attract buyers – overpriced properties attract very few buyers. Once a judgement has been made based on the original price, it is very difficult to get buyers to revisit.

Cost vs Value: Where Should You Spend Your Money?

TIP 32

Demand for homes enhances the value of improvements, so improvements made in a seller’s market will likely add greater value than the same improvement in a buyer’s market.

TIP 33

In a buyer’s market avoid pushing your remodelled value beyond existing values. In any market, if neighbouring homes have mixed values, keep your improved home’s value just below the top value. (Refer tips on pricing)

TIP 34

Giving a kitchen a new look will provide a greater return on the remodelling dollar than practically any other project, particularly if the work is a relatively minor remodelling job, rather than a major rip out and rebuild project.

TIP 35

Balance the practical uses of your home – a very small 2 brm house may not appeal to a family, so there is no point in including 4 car garaging, it may be better to consider increasing the number of bedrooms (if 3brm homes are popular in the district).

TIP 36

It is essential that your home is in good working order otherwise it will fail the final building or valuation inspection, however in terms of resale value, the best home improvements are largely cosmetic – a new roof, painting and decorating, carpeting, curtains, minor kitchen and bathroom upgrades and only those alterations and additions that bring the home in-line with others in your neighbourhood.

TIP 37

Keep in mind ‘added value’ is a local matter – e.g. in highly sought-after and fashionable suburbs just about any improvements could show returns, whereas similar money spent in low-growth areas could be wasted.

TIP 38

Make sure you thoroughly research and plan any remodelling you do and include design elements that will appeal to a wide variety of potential buyers and more particularly to the buyers who may be attracted to your property or to your district.

TIP 39

The kitchen is often the entertainment or family centre and when buyers come through it’s often the first room they want to see and also the one that can make or break a sale. (Refer to overcapitalising)

TOP TIP 40

As important as what you do to a house, is how you do it, especially if the work is visible from the street. Any additions should blend-in with your home’s existing style and the design of other homes in the neighbourhood. Improve beyond the market norm in your area and people just will not pay for it.

Overcapitalising

TIP 41

Do not spend all your available capital renovating or improving some areas of your home and neglecting other important areas. If you pour all your available funds into one area (such as the kitchen) you will overcapitalise and it will be difficult for you to recover your investment if you have gone over the top.

TIP 42

Fantastic improvements in one area can make the rest of your house look shabby. (E.g. if you redecorate one room in the house, it draws attention to the fact that the adjoining rooms look dilapidated, the curtains look tatty or the floor coverings threadbare!)

TIP 43

If you have overcapitalised in one area and have no funds left to complete the upgrades you only have a few options available. You can present the rest of your home to its maximum potential by using the clean, tidy and declutter method. Accept the fact that you will not get a return on your investment (accept a lower price). Do renovations, repairs or upgrading to the other areas in the home (working strictly to a plan & budget). Keep your home and wait until market values increase however this can be a bit of a gamble, particularly in low growth areas, you may have to wait for years before you get the increased growth, and if you are moving to a higher growth area, prices in those areas could have skyrocketed.

TIP 44

If you plan to stay in your home for only three to five years you would be wise to limit the amount of money you spend on renovations, but if you decide to stay put for 10 years or more you may choose to overcapitalise as the resale value is unimportant.

TIP 45

Money spent on unnecessary or detrimental renovations could be money down the drain. There is no point in building a lovely spacious outdoor deck or living area if it never gets any sun. Similarly, don’t add more bedrooms if your bathroom facilities are inadequate.

TIP 47

Don’t over-improve simply because you have a personal vision of what a home should be like and style your home to reflect this vision. Many home owners overcapitalise because they haven’t taken a careful look at what’s happening in their neighbourhood.

TIP 48

If your home is worth around $500,000 and you spend $100,000 on the kitchen you may not get a return on the $100k you invested. You may be lucky and get your investment back (i.e. the $100k) if the house owes you $450,000 before the renovation, but you may not achieve an increase in value – i.e. $100k plus an extra $20k).

TIP 49

When you finalise your budget to do a bathroom renovation, double it! This area has more hidden and expensive surprises than any other room in the house and most people do not take into account hidden water damage costs.

TOP TIP 50

If you are planning costly renovations, pay a licensed property valuer to confirm the existing market value of your home and to advise you what value your proposed improvements would add.

Photography

TIP 51

Great photographs are your most important marketing tool. Many people start their search on the web so it is your ‘shop window’, spend the money on a professional photographer and you will reap the rewards.

TIP 53

Start taking photographs well before you go onto the market and cover all the seasons. If you are marketing in the summer months and you have some very beautiful winter aspects, these may not be readily appreciated by potential buyers. Take a series of season shots, frame them and put them on the wall or into a display folder for potential buyers to view.

TIP 54

Photographs should contain personality not people. Your buyers are not really interested in looking at photographs of you or your family enjoying your home, they need to imagine themselves sitting in your lounge and taking in the wonderful view, or enjoying a glass of wine by the pool. Place a bottle of wine or a jug of juice and a couple of nice glasses on the outdoor table, a breakfast tray with a teapot, cup and a vase of flowers on a bed – this is subliminal marketing, your buyers need to imagine themselves enjoying those moments so it is important not to distract them.

TIP 55

Always take your shots from the most attractive angles and notice the detail. The best shots are always ‘staged’. If you are taking photographs of your swimming pool area, make sure the table is dressed, the sun umbrella is open and that potential buyers can imagine themselves sitting by your pool.

TIP 56

Don’t take all your marketing photographs at the same time of the day. If your property has a sea view make sure that the tide is in, ensure the sun is in the right position for both sides of your home (which may mean taking one side in the morning and the other in the afternoon) and try to take all your shots on fine sunny days.

TIP 57

If your photographs are to be used in newsprint media, try to reduce the amount of trees, shrubs and shadows – they make the image too dark, and it will not reproduce effectively. Many advertising agencies arrange photo shoots in the winter months when the light is crisper and there is less foliage on the trees and shrubs.

TIP 58

A for sale sign outside your property will be 25% more effective if you include at least one photograph of your home. Make sure that the exterior shot used on the sign is not a replica of what the potential buyer can see from the road and do not take interior photographs that show details of your precious or valuable items, this could make your sign a ‘shopping list’ for potential burglars.

TIP 59

Do not be tempted to Photoshop or artificially enhance your photographs unless you are a professional. Buyers may see an enhanced photograph and use it to make the decision to view your property. If they inspect your home and do not find what they expected to see, they may be very unhappy as they have wasted their time and it could turn them off buying. Also in many countries there are strict misrepresentation penalties for false advertising.

TOP TIP 60

When you are paying for print advertising every centimetre will cost you money. Make sure you crop any excess sky, roading, neighbouring properties, lawn or driveway from the shot if it is not enhancing your property.

Experiential Marketing

Aside from location and price many buyers’ say their reason for purchasing a particular home is that ‘it had a nice feel’. You must appeal to all the senses to achieve the right ‘feel’ – sight, sound, touch and smell. The masters of experiential marketing are supermarkets – they fully control your every buying decision by incorporating all the tips below, and then they measure their success by analysing the purchases you make at the checkout. When preparing a home for sale apply the same rules to stimulate the buying experience, replicate the same level of care and attention major stores use to attract buyers to their products.

TIP 61

Use light to showcase your home, open your curtains in the daytime and turn on lights (day and night) to create a cheerful atmosphere. Increase the wattage of bulbs in darker rooms. If you have a fireplace, in the winter light a fire or consider candles to promote a relaxing atmosphere.

TIP 62

Take advantage of traditional welcoming techniques such as attractive front entries, nice door mats, vases of fresh flowers, bowls of fresh fruit, tables set for meals. Include seasonal decorations during the marketing period if appropriate (for example Xmas or Easter)

TIP 63

Remove and securely store away any potentially offensive posters, signs, photographs, books, magazines or paraphernalia.

TIP 64

You must slow down the pace that people walk through your home so they notice and enjoy all the features and benefits it has to offer. Music adds atmosphere but make sure you play soft background music, if you play energetic or loud music your buyers will respond by racing through the inspection at the same speed as the music. Music should also appeal to the projected age-group of your potential buyers and match the design and style of your home.

TIP 65

If your home is near to (but out of sight) of the sea or lake, a composition of gentle waves & seaside sounds could be played. When you tell your buyer that the sea is close by, they already have the image in their mind because they have been listening to the sounds. Use bird song if you are close to a park or woodland.

TIP 66

If there is exterior noise such as traffic, nearby construction or loud sporting grounds and playing fields, plan your inspections around quieter times of the day. Music can also be used to distract the ear from traffic or other noise pollution which may detract from the property. (Buyers are aware of the noise, but relaxing music creating a peaceful environment will make them more at ease)

TIP 68

Your home should feel warm in the winter & cool in the summer. Set your heating or cooling systems to a comfortable temperature but don’t overdo it – you don’t want to drive your buyers away too soon.

TIP 69

Baking biscuits or bread adds a pleasant scent to your home. Freshly brewed coffee is also popular. As buyers enter your home offer a welcoming beverage; soup, coffee or tea in the winter or a cool drink in the summer.  In certain circumstances (particularly evening viewings) you may like to offer a glass of champagne (or orange juice).

TOP TIP 70

It is essential not to over-perfume your home. Many people find strong fragrances overpowering and may suspect you are trying to disguise an underlying problem (such as dampness). A clean and well-aired home is the best fragrance.

Clean and Declutter

Lack of cleanliness and too much clutter have been identified as two of the major buyer objections when viewing homes.

TIP 71

First impressions are important. If the entrance to your home is a mess, then it doesn’t matter how organised the inside is, you’re still perceived as “messy”

TIP 72

The type of decluttering you need to undertake when preparing your home for sale is quite different from a general spring cleaning plan. You may have to undergo a temporary lifestyle change while your home is on the market and move, remove or replace some of your old and favourite items during the marketing period.

TIP 74

Strategically place instant storage containers in the high clutter areas, a quick dash throwing toys, newspapers, clothes, shoes and excess clutter into these containers then rolling them under a bed or closing the door on a wardrobe or cupboard offers a relatively quick ‘ready to view’ look.

TIP 75

Don’t cook pungent meals the night before an open home and make sure that you open all the windows and doors well in advance of a viewing.

TIP 76

Empty all rubbish containers and make sure there is no dirty laundry lying around the home (even in the washing machine as many buyers will lift the lid of the machine and take a look even if it is not included in the sale!)

TIP 77

Pet beds, blankets and litter trays should be clean, left outside or stored (perhaps a temporary relocation of a pet currently sleeping in the lounge to an outside laundry may be considered)

TIP 78

If there are smokers in the house, open as many windows and doors as possible well before the open home viewings (you may like to have a ‘no smoking inside’ rule while your home’s on the market – hard for dedicated smokers, but great to improve the smell of your home). Ashtrays must be emptied & clean.

TIP 79

Outside smells can also put buyers off - make sure your drains have been cleaned; check any septic vents for unpleasant smells; get rid of any decaying leaves or rubbish. Compost heaps are great but they attract flies and can be very smelly – get rid of any piles of composting material and make sure your outside incinerator is clean.

TOP TIP 80

A clean and well-aired home is the best fragrance. You should concentrate on removing the bad smells rather than increasing the instance of good smells. Add fragrance & colour by using vases of fresh flowers.