To reply to this question, we must first ask you: who are you selling your property to?
When you start planning to sell your house, it is crucial to determine your market niche. Knowing your market will help you better understand the people who aim to buy it. And once you know more about them, it will be easier to target them and develop more accurate strategies in order to sell your property to the right buyer.
You may think that all properties sell the same way to everyone, but they definitely do not. For example, first-home buyers are more likely to pay attention to the building itself. As they probably will be living there, they want to make sure the structure contains everything they’ve ever wished for. Little do they know (or if they do, it’s not their main concern at this point) that, after some time, the built structure deteriorates. And when this happens, the building loses some of its initial value unless they keep proper maintenance over the years.
However, it’s not the same with investors. Investors want to put their money in the best available option and make the most out of it. What happens with them is that they focus on the land rather than the building instead. They just look past how beautiful the new jacuzzi looks or if the kitchen reno matches their taste.
Why? Simple. Because the land is limited, and it becomes even more limited as the population grows worldwide. Hence, prices tend to increase over time, which is a good outcome for anyone investing! So, yes, it’s the LAND that has a more significant impact on the property’s value and investments.
Once you hone in on your land value, you can target your investors more effectively. Although, of course, this doesn’t mean you shouldn’t accept anyone out of your target niche. Be open to any opportunities that may appear! What we are suggesting here is a better strategy to capture those people who might be even more interested in your home, based on your property’s pros. This will help you to not waste time and energy on those that are not suited for it.
Now, what are the other common factors that influence the property’s value?
Although it relates to land appreciation and capital growth over time, this covers another angle for investors. Basically, it refers more to returns in the form of rental income that can be achieved from the property.
Many subfactors could also make your property more attractive to investors, like location, the target market for the rental, facilities, etcetera. We will cover this in another post.
Sometimes more doesn’t necessarily mean more. Value is determined by how productive and usable the built space is. If the home is enormous but lacks a wise room distribution and a nice flow, it won’t be attractive for the market. Buyers already know they will have to knock down some walls and disburse extra money to make sense of the space. And that is even before they move in.
On the opposite side of the size spectrum, you could absolutely find smaller spaces that have taken advantage of every inch they have. This makes them immediately more appealing to potential buyers, which translates into a more interesting selling price. So try to make the most out of what you currently have!
Did we say that the less work to be done to a property, the more attractive it is? Well, yes, but… it’s one thing to have to start renovations as soon as you move in to make the space liveable. It’s another (very different) thing to have the potential to do it.
Buyers are keen on buildings and areas that could extend or amplify in the future, should they want to. Having this chance of customisation and improvement in the future is undoubtedly a plus in the value.
In this way, Council building regulations play an essential role, depending on the permissions and planning that would be involved to make those changes.
At Kooger & Co, we know what works best for capturing the right market for the right value, and we know the Auckland housing market like the back of our hand! We can help you choose the right strategy to follow when selling your home, saving money and time spent on things that won’t bring any results.
So give us a call today, or flick us an email, to get you started on your selling process!
