Thursday, July 07, 2016

‘You never get a second chance to make a first impression’ – Will Rogers

In today’s real estate market it’s clear how important property presentation and styling has become, and how much it impacts on the sale of a property. Approximately 75% of residential properties for sale now incorporate some form of professional styling and sellers are seeing an increase in returns on their investment in this area.

Generally people invest between $3,000 and $8,000 in styling their home, which equates to between 0.5% and 2% of the property value. The general rule is that this can add up to 10% to the sale of the property.

With presentation and styling increasingly adding to a property’s return, why do we hear stories of some sellers spending $15,000 and receiving little to no return, while others can spend $8,000 and more than triple their return?  There is a science to this. Return on investment on home presentation isn’t just luck. Employing an experienced agent to highlight who the buyer will be, and what they are likely to value, provides valuable insight for vendors on how to optimise their returns – which is key to achieving great results.

The questions we get asked as agents are ‘How much should I spend on preparation? Where should I start? How much money do I need to spend to maximise the return?’ There isn’t a one-size-fits-all approach. There will be different answers to these questions for every property, however, they will all start with the same approach. This is ‘starting with the end in mind’.

The science of working out how much you should spend and what preparation you should do, starts by working together with your agent and talking through who you believe will be the most likely buyer of the home. What does this person look like? Think about their lifestyle. What do they want from their new home? An exercise that we go through with our sellers is looking back to when they bought the property and remembering what attracted them to the home... often the buyer profile will be similar.

Once there is a defined picture of who the buyer is, the presentation plan of how much to spend and what to concentrate on to maximise returns becomes much clearer. For example, if we were selling a modern townhouse in Norwood, we may look to attract young professional couples as typically it is these types of buyers that are looking in the area for this type of property. Narrowing it down, if the property had an old run down fence it could significantly impact the attraction of this type of property to the buyer. Whereas, if you had a character ‘renovators delight’ property in the same area, with the same condition fence, the buyer profile is very different. This may be an extremely attractive option to developers or renovators so fixing the fence before sale would be a waste of money.

Adding this level of science to selling your home is very cool! If you are thinking of selling and would like to talk through presentation strategies to optimise your sale, make sure you chat to one of our team this weekend. We would love to help!

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