How to Maximise the Value in your Home in 3 Simple Steps

Tue, Jul 7, 2015

Financial Advice, Investment

If you want to understand how quickly the global property market is expanding, take a look at the rental sector.

While this may sound strange, aspiring buyers tend to turn to the rental market when property prices soar outside of their means. This in turn creates a competitive market where demand exceeds supply, enabling landlords to increase their rates. The UK market provides a relevant case in point, as an excess of demand is expected to trigger an average annual rental increase of 7.5% over the next 18 years.

How to optimise the value in your Home as a Vendor

The strength of this sector betrays the growth that defines the global property market as a whole, and this is relatively good news for home-owners that are keen to sell their assets. Given that some potential buyers are being priced out of contention, however, however, those who are looking to sell must take steps to successfully market their homes while optimizing any resale value. Consider the following steps towards achieving this: –

Avoid Complex and Time-consuming Modifications

While each potential home-improvement can add value to your property and deliver an estimated ROI, it is crucial that you sell your home in a time-effective manner if you are to optimise any remaining resale value. To this end, you should avoid funding any time-consuming home modifications or those that are complex and more likely to incur delays. This can not only increase costs and eat into your potential profit, but it may also delay your sale and force to miss out on the exiting window of opportunity.

Create a Neutral and Open Living Space

While you need to be careful when investing in home modifications, it is still important that to create an appealing interior space that incentivises buyers. A good way to achieve this while also optimising resale value is to create a neutral and open space, which focuses on the core elements of minimalism and uses only pastel shades. By reducing the items of furniture available, optimising the amount of floor space available and creating a neutral colour palette, you can effectively cut costs and increase buyer interest.

Set a Viable and Realistic Price

Arguably the most important point, you will need to set a fair and profitable price point if you are to optimise resale value. While you may decide to set an inflated price point with a view to maximising the value in your home, this is counter-productive if you are unable to execute a quick sale before the market cools. So although you need to set a profitable price that is based on outlaid costs and your initial investment, it is important not be greedy and strike a balance that the market can bear.

As a starting point, identify knowledge estate agents with local expertise and review the existing price points for similar properties. Residents in Twickenham, London would use a reputable firm such as Featherstone Leigh as a resource, for example, before setting a price that is both viable and profitable.

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