The ability to distinguish what is salable is an absolute must for any broker to survive and be successful in the real estate industry. Whether it’s a condo, townhouse, or detached house, there are some aspects that are inherent in the property itself and there are others that brokers and sellers can relate to. work.
What constitutes a salable property depends on the needs of the buyers. Millennials prefer hassle-free units in the metro area, while the wealthy roam several country vacation homes for entertainment. Plus, property-specific renovations and amenities count. For example, buyers looking for an apartment or condo pay attention to convenient parking space, elevators, etc.
Ranked from smallest to largest, here are the 10 highly salable factors of a property that you need to know for a faster sale:
1. Every real estate transaction involves working on legal documents, but the extent of paperwork (or the lack of it) makes a property more difficult, if not risky, to sell. Check documents related to title, appraisals, mortgage, etc. even before you advertise. Equip yourself to answer questions about stamp duties, residence permits, etc. Also, prepare a draft contract in advance. Make the process easier for the buyer and avoid legal trouble.
2. Strive to make the property stand out in the sea of postings on the MLS (multiple listings service), which is more important than maximum exposure to the real estate market. Know the property inside out so you can answer any questions buyers may have about the property and its neighborhood. Highlight the best features so you can match the right property to the right buyer. Most importantly, connect with potential buyers and put yourself in their shoes. Analyze the needs and desires of buyers. Emphasize what is there for them.
3. This is true to some extent, the The phrase “geography is fate” shows an inherent – and fixed – characteristic of a property. The geographical conditions in which a unit is located dictate the landscape, the activities and the climate in the literal and figurative sense of the term. While you cannot change the location of the property, you can focus on how it serves the interests of your target market. For example, a house in the suburbs can be the getaway a hardworking businessman needs.
4. Widely controllable by the seller, the property should be staged in the best possible light not only to sell the property, but also to increase its value. Even if the homeowner can’t afford a major overhaul, at least work on pressing structural issues that buyers can easily see, such as faulty wiring and plumbing. Plus, things as inexpensive as cleaning, decluttering, and painting will go a long way in selling a property.
5. Concentrate on the courtyard, entryways and kitchen. The curb appeal draws in shoppers, and a crisp kitchen – especially an upgrade with new cabinetry and stainless steel appliances – is a definite plus. But whatever the budget, remember the devil is in the details. Take care of flickering light bulbs, unpleasant odors, and other things that can cost you a buyer.
6. The size of the property is an important factor in its marketability – and the price – because land is a precious and limited commodity. Ensure accuracy in calculating the value of salable area according to the type of property. For single-family homes, multiply the total square footage of the house by the value in the circle. For apartments, add the carpeted area, shared indoor space like stairs and outdoor areas like terraces and balconies. Multiply the sum by the guide value.
7. Increase market value by adding value with a loft or back extension. If an extension cannot be done, obtain a building permit for buyers who can be sold knowing they can make extensions.
8. While it is the broker in charge of marketing and discussions with buyers, the sale is based on the decisions of the seller – from the allocation of a budget for the staging of the property to the supply of the papers necessary for the negotiation of the sale price. Earn the seller’s trust, work closely with them, and ask them to be flexible when the situation calls for it.
9. The seller may decide the price, but it’s the agent’s role to shift the seller’s mindset from what they want to what buyers will pay. Evaluate the property’s market value, and based on that, come up with a range with bullish, breakeven, and pessimistic selling prices. Financing is also crucial for a buyer’s affordability. Flexible, competitive and economical payment terms and mortgage interest rates will certainly help the buyer.
ten. A property has two prices: the selling price to be agreed between the parties and the maintenance that the buyer will have to assume to keep the property in working order. once the title is transferred to it. A good example of a manageable place for a buyer is a condominium property. Compared to large single-family homes, the relatively small space in condominium units requires less heating and cleaning. In addition, the residents of the condos learn to reduce their appliances, their furniture and their belongings. This profitability is one of the benefits of downsizing in condominiums and the reason why smaller but more functional homes appeal to the younger generation of buyers, as panelists highlighted at the International Builders Show.
Real estate is a more feasible investment when financial risks are low, especially for buyers looking for an investment. According to Leonard Baron, MBA, real estate expert and Zillow blogger, “All real estate is extremely high risk», But this risk can be minimized by carefully choosing a low risk property that produces a fair return and does not require too much time to manage.
Do your homework and cooperate with the seller and the buyer. Paying close attention to a combination of these “salable” factors will yield bottom-line results, and soon you will be able to identify a highly salable property up front and increase its marketability even further for the best possible return.
Jona Jeanne is a former mortgage originator in Philadelphia; she is a business and real estate specialist who writes about real estate investing, business, parenthood and life at Vistage Executive Street Blog.
Email Jona Jones.