It’s always interesting when negotiating a sale and the price that we ultimately feel comfortable accepting. So many factors suddenly come into play.
The common comment is “it owes me this much” “I have spent this much, so I want to cover my expenses” So the acceptance price is determined on what the homeowner has calculated they have spent living there.
So I pose the question, when spending money on your home, the place you reside and come home to each day, the place to nurture and support you, did you at that moment decide that this money is going to be added up when you sell and be included in the sale figure on top of the initial purchase price?
I can confidently say No is the answer to that question. Would you say “Actually I don’t what that pergola out the back to keep the sun off during summer as I need to recover the cost at the end when we move”? No you invest in the pergola to support and create an environment for you to enjoy in summer.
We spend money on our homes to create an environment we enjoy. We paint the walls, make additions, landscape the gardens, so we can feel proud of our home. These additional items suit our specific needs and how we like to live. We don’t spend money thinking, how much we will get at the end?
The price we receive is largely determined by the market conditions, the negotiating skills of your agent, and the foundation they work from. Does your agent see your property as just another sale so they can meet their individual sales target? Or do you have an agent that cares and will also be honest with you and not afraid to tell you if the price is too high, and make solid recommendations to support you in achieving the best price? Does your agent work in a team environment, where all staff are working on your house to sell it?
Clearing clutter, packing away items not required, trimming gardens and painting are but some of the simple items to begin with.
Any additions will always support achieving a higher price in the market place. It creates value in the buyer’s eyes and they sense how much you have enjoyed living there. However, value does not necessarily mean the market will pay for the money you spend.
So in closing always consider why you are truly spending money on improvements. Is it for you and your regard to the way you wish to live, or are you only thinking of the money? In which case, you will never truly receive the benefits of your improvements.