Maximising your selling price in the current property market
If you've had your eye on house prices this year you will have seen them soar. The median house estimate had already increased by 22.8 per cent since the start of the year, according to the Real Estate Institute of New Zealand.
If you are thinking of capitalising on the current market and selling your home, there are insider tips and tricks to help differentiate your property to get the best return, without overspending.
We spoke to Rick Mossezohn, Licensee Salesperson from Ray White New Zealand about what you can do for your home to ensure you get the best price for your home at sale time.
Hire a professional
Engaging a real estate agent who knows the local market and whose advice you trust will undoubtedly help with the sale of your home.
"A great agent is invaluable. Choosing someone with experience, tenacity and continuous local results will often help you achieve well above what you might get selling privately," says Rick.
Buyers today will have already done their research online, they'll have compared prices and gotten a feel for what's available, so work with your agent to make sure your home is priced in line with the market, otherwise you'll find prospective buyers will look elsewhere.
When it comes to whether you should go to auction or conduct a private sale, it is the responsibility of an estate agent to create an environment where the competition is conducive to getting the vendor the best result.
"The unquestionable truth is that in most cases, particularly in Auckland and capital cities, auctions are the best way to create this competition," says Rick.
Pay attention to the outside
First impressions really matter and attracting interest from the first open home can be a smart way to create buyer competition from the outset, particularly in a rising market.
On the flip side, a disappointing exterior could see buyers strike your property off their list even before stepping inside, so preparation is of paramount importance.
Boost the street appeal of your home with some quick fixes such as mending gaps or cracks in the fence and doing some light gardening to keep the front yard tidy as buyers enter. For a slightly larger investment, Rick says that a fresh coat of paint to the front of your home will be well worth the money, costing around $10k to complete but netting you up to $100k more on auction day.
"Making sure that the exterior of your home is well finished, staged, and prepared for sale is absolutely critical," says Rick. "And remember to talk to your agent; their experience will help identify key areas outside your home where you should spend some money to generate buyer interest."
Spruce up the inside
Rick advises you don't need to go overboard inside your home. Instead, small, simple touches can make a surprising difference.
Start by giving the property a heavy duty clean, from cobwebs to fingerprints on the walls and beyond. For properties that have carpet, steam cleaning is a cost-effective option. Carpet cleaners can be rented from your local hardware store and even some supermarkets.
Adding a fresh lick of paint to interior walls is another great way to brighten up your home. However when choosing colours, Rick's advice is to go for light, neutral tones.
"There's nothing wrong with having a funky feature wall in your home, however, it's best you keep things middle of the road when preparing for sale," says Rick.
"Simple colours and décor for showings will help buyers envisage themselves living in the home, motivating them as the auction or sale approaches."
Have a back-up plan
All the preparations in the world will not guarantee the sale of property, so having a plan B is really important.
"Often we are asked to sell properties that have previously been listed and not sold with other agents. It's always a challenge putting a property up for sale for the second time as the market will likely be aware this is the case and react accordingly," says Rick.
If this applies to your home, Rick recommends consulting with other agents to find the path forward you're most comfortable with. For example, you could consider alternative options such as renting out the property for a period of time until the market conditions are right for sale again.
To maximise your returns consider the preparation, the campaign and the closing. Making sure your property looks great, employing an agent with great local exposure, and implementing an efficient campaign structure are a few key examples of how you can get a great result.
The opinions expressed in this article are the opinions of the author(s) and not necessarily those of Resimac. The above is general commentary only and is not advice tailored to any individual's financial situation. We recommend seeking advice from a finance professional before implementing changes relating to your finances.