What Is The Difference Between Value And Marketability?
Category Newsletter: Lifestyle
Homeowners who have listed their homes are not only eager to make a fresh start in a new home, but they want to maximize the value of their home when it is sold.
Sellers need to make an important distinction when selling their homes and that is the difference between value and marketability.
Many elements determine the value of a home and there are also aspects that can have an impact on a home’s marketability in the current economic climate of the market.
Simply put, the value of a property is determined by the size, type, features, and configuration. Marketability, on the other hand, is more about the readiness of the property that is being sold.
This relates more to the properties aesthetic appeal and condition of the home, whereas value focuses more on its actual physical features.
The value of a property is mainly determined by the demand and supply of such a property in the market, along with the buyer’s personal preferences.
For example, when there is a high demand for the type of property that is being sold and there aren’t many of those properties on the market, the value will increase significantly. The opposite is unfortunately also true: if there are many homes of the same type and not enough buyers the value will stagnate.
It has been established that property prices, demand, and value of a home are not determined by the seller, but the prospective buyer.
It is also important to remember that even though renovations and alterations to the property will change the price to some extent, it does not mean that the value of the property will increase. This is because renovations need to take place against the background of trends that homeowners are interested in.
Sure, a new bathroom and kitchen will look great, but are buyers prepared to pay more for this?
It must also be said that renovations will become redundant if the home is situated in a low-value area. Buyers will rather buy a home for the same price in a better area.
In order to increase the marketability of the home, sellers should ensure that the home is well prepared before listing it. This will attract a higher number of sellers and it might even result in an increase in the price of the property.
If a home is clean and neat it will look more appealing to the potential buyer – this goes without saying. The marketability of the home is increased by ensuring that it is in its best condition before putting it on the market. Adding a coat of paint and improving the landscape might not increase the value of the home, but it will make it look all the more appealing to buyers, even though the actual features of the home have not been changed.
Staging a property will also have an impact on its sale-ability.
It is always a good idea to spring clean and to declutter the rooms before an open house, but to keep it furnished. It can be very difficult selling an empty home because it looks bare. It becomes difficult for buyers to see themselves living there.
An experienced real estate agent will be able to provide expert advice on how to stage the home and how to highlight certain features in the rooms to increase the marketability.
Even though there is a clear distinction between value and marketability, both are equally important when it comes to selling a house. Homeowners need to ensure that they maximize the potential of the house and that it stands out from the crowd.