How Renovations Can Improve The Value Of Your Property
Renovation activity likely to increase
With the rate of property value growth slowing, sales volumes falling and construction of new housing continuing to soften we wouldn’t be surprised to see an increase in the number of homes undergoing renovation over the coming months.
Renovations can includes; ‘major’ renovations where owners add additional rooms to a house, ‘moderate’ renovations such as a new kitchen or bathroom, or ‘minor’ renovations such as re-painting or re-tiling rooms.
When comparing the Australian Bureau of Statistics (ABS) data for June 2009 to June 2010, the total value of building approvals for alterations and additions (including refurbishment and conversion) has increased by 13.8% to more than $520 million during the month.
Despite the increase in the total value of building approvals for alterations and additions increasing, housing finance data shows that owner occupiers have actually committed to -12.2% less finance for alterations and additions than they did 12 months previous.
The two results would seem to contradict one another. The increase in building approvals data suggests that the major renovations where owners alter or extend their property are still occurring.On the other hand, the decline in housing finance data suggests that many of these projects aren’t requiring finance.
Over the June quarter of 2010 property value growth has slowed and sales activity has begun to fall. These conditions suggest that many home owners may be more likely to remain in their current residence rather than sell and move. Also when you consider the costs associated with moving such as stamp duty you can see why some people would prefer to stay put.
Below is the median home price across each capital city and the approximate amount of stamp duty payable based on that price:
- Sydney – $495,000, $18,500
- Melbourne – $470,000, $23,300
- Brisbane – $445,000, $14,000
- Adelaide – $390,000, $15,800
- Perth – $475,000, $16,600
- Hobart – $320,000, $10,300
- Darwin – $489,750, $23,100
- Canberra – $495,000, $20,200
You must also consider that often when home owners move they purchase a more expensive property and there are other costs such as: legal fees, cleaning and removalists to consider.
Although building commencements data was still reasonably positive up to the March quarter of this year, building approvals have been trending lower since March and are now down -19.5% over the three to June.Owner occupier housing finance commitments for the construction of new homes and for the purchase of new dwellings is down -23.6% and -13.7% respectively over the year indicating that there are far fewer opportunities for those looking to buy a brand new home. A brand new home will essentially have everything the purchaser needs and not require any improvement (at least in the short term).
With the prospects of strong property value growth diminishing over the second half of 2010 we expect home owners to look to add value through renovation. For anyone that has owned since the beginning of the price surge at the beginning of 2009, they are likely to have more than enough equity to undertake some property improvements to their current home.
For more property sales and real estate data please visit the myrp.com.au web site.
Things You Can Do To Expidite The Sale of Your Home
While the author specializes in Moses Lake Real Estate, the information presented here applies to all locations.
MAKING SMART PRICING DECISIONS
Pricing your home is one of the most important decisions you must make when selling your property.Some sellers desire to price their house based upon return on their investment, while others determine price based on what they require in order to purchase their new house. Location, condition, and accessibility are three other variables that affect the price of a property.
It is crucial to price your home correctly from the beginning because it will not sell if it is overpriced.Don’t make the mistaken assumption that you can simply reduce the price later once you have already lost numerous possible buyers.A committed seller keeps the price low enough to remain attractive.
Existing conditions in your local real estate market will strongly influence the amount buyers are willing to purchase their home for. A professional Realtor will be able to guide you through the pricing pitfalls with a written market analysis that includes the selling prices for similar homes in your area.
PREPARING YOUR HOUSE FOR THE WALK-THROUGH
The movers have just left your house totally empty, except for years worth of dust and grime.If you don’t have the time or energy to properly clean your home for showing, you should hire a professional to accomplish this important task.
Before going to the closing table, your buyers will have a last chance to go through the house to check the appliances, fixtures and mechanical systems.Their goal is to make certain the house’s overall condition is in keeping with the sales contract. Even though they really want the house, they may be somewhat “nervous” about the sale.
It’s the small things that trigger last-minute indicision, so your best approach is to make sure the house looks fantastic, everything works properly, and all the agreed-upon repairs are completed.Paying special attention to pre-walkthrough preparation will provide a more relaxed atmosphere for the closing.
SHOWING YOUR HOUSE
Ideally real estate agents like the properties we sell to look spotless.However, even the most conscientious housekeepers find it hard to maintain the house in prime showing condition during the whole time the hose is for sale.
Keeping beds perpetually made, dishes washed, bathrooms spotless and closets neatly organized is a lot of work. Is it worth it? Yes – if you want your house to sell in a reasonable amount of time and for the best price.Buyers often interpret normal clutter as a house that hasn’t been maintained.” They see bathtub rings and imagine “plumbing bills.” They see lint under the refrigerator and grease on the electric range and imagine having to replace all of the appliances.
When people make their final selection, they may be going on emotion and adrenaline rather than imagination.You can assist your agent by reducing the degree of imagination buyers will require to fall in love with your house.
If you would like to talk further about buying or selling Real Estate in Moses Lake, Ephrata or Soap Lake Wasington, please contact Moses Lake Realtor LeRae Redal at Moses Lake Realty Group or visit MosesLakeRealtyGroup.com.
My Home Isn’t Selling–What gives?
In this economy and depressed housing market, one of the biggest questions people are asking is, why isn’t my home selling? The home could have been on the market for months and no purchase offers have been made.
Maybe it is time to examine your selling strategy to see if you can make some changes to get that house moving in the direction — toward a sell and closing.
Keep abreast of the homes that have sold in your neighborhood. If 90% of the homes in your market aren’t selling, your home has to outshine the 90% to get into the top 10%. Don’t depend on facts or figures about completed sales beacuse the data may be wrong. Look at pending sales figures for the most up-to-date information. These are the homes you want to copy.
Is your home comparable to the pending sales? Take a critical look at your home. Does it need repairs? Upgrades?Do the top 10% of homes that are selling have new carpet? Replace yours if you don’t. Paint the walls a neutral color.
Photography
Do you have good photos of your home? Do you have more than one photo? Hiring a professional photographer may be your best idea. If you find a photographer that is experienced in real estate, they can help you get each shot set up. If your photographer is not very experienced then have him shoot wide angle photos with plenty of light showcasing your home’s best feature.
Unless your bedrooms are significantly different, just photograph the largest one.Be sure that you or your photograher doesn’t appear in any of the photos.Don’t photograph your hallway if it is narrow and dark. Take many pictures of the kitchen from different angels. Set the dining room table with a neutral table cloth and your best china before photographing it. Make your living room look more spacious by moving out some furniture.Take pictures of the flower gardens, the backyard, and the front door. Add a good caption to each photo.
Another method for attracting buyers is going to http://www.findbuyers.com for a unique approach in buyer and selling matching that works like a dating site. Findbuyers.com uses a 30 point matching system to ensure you find the house you want, in the area you want. We have clients in the Washington DC Metro area and most major cities in the Mid-Atlantic region. Signing up is free, so go to http://www.findbuyers.com and register, today.