DO I NEED TO SPEND MONEY TO MAKE MONEY?
When selling your home, it is vital that you spend money on the right things when getting your home ready for sale. Deciding how much money to spend is a tough one though, because you don’t want to over capitalise and end up loosing money if the home doesn’t sell for the price you want. However, there are things you absolutely must spend money on, to ensure you do get the most amount of money back when selling.
WHAT DO I NEED TO SPEND MONEY ON WHEN SELLING?
During an open home, buyers are usually are looking for everything that they can possibly find that is wrong with the house. If they see things that need repairing they will add up all the costs involved to fix the house, before they can move into it. When they do this, they are usually deducting money from their offer price - IF they decide to put in an offer.
So spending money to fix anything that needs repairing before you list the house for sale is vital. It will add value to the property and buyers won’t be able to discount the purchase price if they can’t see anything wrong with the property.
COSMETIC RENOVATIONS ADD VALUE
One thing that will add value to your home is painting. If you paint both the interior and the exterior of your home, it will make it look clean and fresh and this will definitely add value to the property. If you have a larger budget, you could look at replacing or updating tired kitchens and bathrooms, as these rooms add the most value to a property.
If you only have a small budget and can’t afford to replace a whole bathroom, you could do other simple cosmetic renovations such as replacing tap fittings, spray painting old bath tubs or vanities, or replacing fixtures such as towel rails and toilet roll holders.
If you don’t have the skills to complete a cosmetic renovation yourself, you can always hire someone who can. There are a lot of tradespeople out there who will be able to co-ordinate a renovation for you. Yes you need to pay them for their time, but think of it as a short-term investment that will see great returns when you sell the home for much more than it was originally worth.
STREET APPEAL ADDS VALUE WHEN SELLING YOUR PROPERTY
Another thing to think about when getting your property ready for sale, is the street appeal. Make sure your home looks good from the outside, as potential buyers will often drive by before inspecting the property and first impressions are usually seen from a car window. After doing a drive-by, buyers will decide whether the property is worth their time to inspect the interior.
ADVERTISING YOUR PROPERTY ONLINE
When working out a budget for advertising your home for sale, there are several factors to consider. The largest cost when it comes to selling your home is advertising online. realestate.com.au and domain.com.au are the two most common online selling platforms and they’re the most expensive as well. Buyers usually scroll through all the listings until they see properties that suits their needs, and then don’t bother looking through all the rest of the listings. Therefore you want your ad to be one of the first listings at the top of the page, so it gets onto their list of inspections.
Advertising on social media also plays an important role in marketing your property, as through these channels, you can reach people who aren’t even looking to buy a new home. Someone might be scrolling through Facebook when an ad pops up on their screen and this prompts them to think about their brother/mother/friend who is looking for something and they may share it with them. Or they may even fall in love with your property and want to buy it for themselves.
PROFESSIONAL PHOTOGRAPHS, DRONE PHOTOS AND VIDEOGRAPHY
The next thing to consider is getting professional photographs of your home. When you list your home for sale, you want to present your home in the best light. To attract more buyers to your open homes, it helps to have beautiful photos of your home for marketing purposes. If you can afford drone photos (from above) and a video of the property, this is also a great option, as listing with videos are viewed 3 times as often as a listing without a video. Drone images are also a great way to show how close to the city your property is.
One of the first thing that buyers ask for when enquiring about a property for sale, is a floor plan. They want to see if the bathroom is next to the bedrooms and how far the kitchen is away from the back deck etc. Investing some money into a floor plan is one of the ways to keep a buyer looking at your listing for longer.
Another option to consider when selling is a photo signboard at the front of the property. When buyers do their drive-by (while checking out your street appeal) if they see a sign out the front with beautiful images of the interior, this will make them more likely to want to see the inside for themselves.
Professional brochures are also a great marketing tool to have, as buyers don’t just go to one open home on the weekend - they go to multiple. If your property has a beautiful fold out, glossy brochure and the other homes just had simple A4 paper brochures, yours will stand out in their minds more, and they will come back to look at it more often.
how much money do i need to spend when selling?
It really comes down to the area in which you are selling, and how quickly you want to sell. The more you spend, the larger the audience will be that you can reach. Greater advertising exposure means more people at your open homes, which in turn can create competition amongst buyers, driving the sale price up and the sale to a quick close.
who pays for advertising?
It’s the seller’s responsibility to pay for their own advertising, however some cheaper Real Estate Agents will offer to pay for your marketing to ensure they get the listing. I would be reluctant to sign up with a Real Estate Agent who offers to pay for your marketing as they are usually inexperienced and when push comes to shove, if they can’t sell your property for the price you want, they may try to convince you to sell at a reduced rate, so they can recover their marketing costs.
Hopefully this blog post has helped you to decide what to spend your money on when selling your home. Your Real Estate Agent will go through all the different marketing methods that will work for your property and you can both decide on a package that suits your needs. Please feel free to leave a comment below or get in contact with me to discuss the sale of your home.
If you would like some more tips on how to sell your home for more money in less time, please download my guide below.