Filed under: Sell My Home
From Money Magazine By Sarah Mills
“First impressions are critical,” says Kurrajong NSW real estate agent Martin Schoeddert,. “Most buyers come to an opinion about a property in the first 90 seconds of an inspection, which is why presentation is so important. If it’s spot on it will hook them immediately.”
Newington, NSW real estate agent Matt Hamilton says: “Cast a critical eye over your home. If there’s anything wrong or shabby about it, such as a cracked window, cobwebs, messy garden, dirty walls, a fence paling missing, a dripping tap — just tidy it up or repair it. Your home needs to make a prospective buyer feel good, excited and confident. If they come across what may seem to be even minor blemishes, they may fear the worst for the rest of the property.”
Schoeddert agrees with this, but notes that many vendors have an overly rosy view of the appeal of their home, and a relative blindness to its failings. “You need objectivity when selling a property,” he says. “Have someone else have a look at it and get them to tell you what they think needs doing to smarten the place up. They will view it as a prospective buyer would, and that’s the sort of input you need.”
Getting the presentation right is something you can do yourself for very little or even no cost apart from some elbow grease, though you can get professional help if you’re prepared to pay.
Ros Brebner, of Adelaide-based Presenting Beautiful Homes, is a home stylist who says her primary function is to maximise the price you get for your home.
Over a period of usually 2-3 weeks, she will go over it with a fine-tooth comb, including arranging tradespeople for thorough cleaning, de-cluttering, minor repairs (not structural), repainting if required, landscaping and so on. She will also furnish a home if appropriate, including taking your daggy old stuff out and replacing it, temporarily, with something smarter and more appealing to the eye.
Brebner says her fees are often in the range of $10,000 to $20,000, which may include furniture hire that itself costs from $1200 to around $5000 for a four-week period. The payoff, Brebner says, is a faster sale and a better price, which she says should be at least double whatever her charges are.
For sellers who don’t want to go down this professional road, there’s plenty they can do themselves. Schoeddert advises: “Make sure the property is spotlessly clean, get it clutter-free (temporarily), get rid of the pets and anything unpleasant they leave behind, open the home up and let the light in, plant some flowers, make sure everything smells fresh, and so on.
How to fund a sale strategy
Right — you’ve decided to lash out and spruce up your home for sale, plus commit to a sizeable marketing budget. It’s going to cost you $15,000 all up but how do you pay for it?
Some real estate agents will let you pay your marketing costs out of the sales proceeds. But not all will let you do this.
If you have a property that several agents are vying to handle you could make this a bargaining point, and go with an agent who will allow this.
And how are you going to take care of the other bills — the ones for the stylist, the tradesmen, the cleaners and possibly furniture hire and storage?
You could ask your home lender to extend your mortgage temporarily to meet the $15,000 cost, or you could apply for a personal loan, but these take time. Macquarie is trialling a deferred-payment loan through Sydney real estate agent Ray White Double Bay.
The loan enables sellers to borrow between $5000 and $30,000, with no repayments due for either three months or six months. You choose the length of time.
Of course nothing is for nothing. Borrowers pay a 3.5% settlement fee for a three-month loan, and 7% for six months. On a $15,000 deferred loan for three months the cost would be $525. If the loan proves popular Macquarie will roll it out more widely, Berkman says.