In this market, buyers aren’t willing to pay a premium for a home if they see that it requires serious refurbishment and therefore they are taking on significant deferred maintenance. Maintenance is not capital improvement at all. In a boom market, escalating land prices hide the cost of the work required and buyers often pay over the odds to bet on capital gains (i.e. the price of land going up). Back then, they used to have depreciation for buildings which tells you all you need to know about the value of buildings.
When the market softens, and the FOMO (fear of missing out) disappears amongst buyers, buyers look for reasons not to offer or to beat you down in price. And guess what? They certainly will exaggerate (either to you or in their minds) the amount that they need to spend in bringing the property up to standard.
So, if you’re planning on taking your property to the market and would like to get a premium, ask your real estate agent what needs to be done prior to the launch of the campaign. Don’t be afraid to show them the house in its current state.
I often work with my clients and point to them which areas will need the most attention and can get the best bang for the buck. You have limited time (and presumably a limited budget) so I doubt you want to be spending all day renovating, painting etc on something that ultimately adds little value.
As always, the sale of a house is all about selling the lifestyle, especially in the beautiful Eastern Bays and Remuera area. Your house needs to meet the target market’s needs. But that doesn’t mean it needs to appear in the Home and Garden Magazine.
Take the time to prepare your home for your target market. Basics involve having a good street appeal (first impressions!), a well-groomed section and clean, clutter free surfaces. This all works wonders when it comes to making people fall in love with your home. But don’t let your hard work go to waste. You will want top notch photography that can flag the key features, a well-considered photo sequence and solidly-written advertising copy that is bereft of grammatical errors.