It is an interesting time to be a buyer or a seller in Manhattan. Real estate professionals like myself are experiencing a shift: currently there are fewer buyers in the market, and those that are serious about purchasing are taking more time to make an offer on a property. If owners need to sell in this market, they should consider how to make their listing stand out prior to listing their home for sale.
This brings many to the age-old real estate question: should the property be renovated in order to sell? The answer may not be so simple; however, I always start with one question: what is your competition?
In order to discover the answer, the first recommendation I make to my clients when they are considering upgrades to their property is to consider the standards in their building. One can do this with a little hands-on research. By visiting some open houses in the building or similar buildings in their neighborhood, owners can learn more about what buyers want. They can then start to gauge where their property is currently positioned in comparison to the other properties as well as what certain updates might bring in terms of value.
Because the amount of new construction in the market, many buyers have been conditioned to desire a similar look and feel exemplified in those listings, even if they can’t afford to buy in a brand new condo building. Typically, it takes less than a minute for a buyer to decide if an apartment is one they want to add to their list of possible places purchase. So what are some ways to make your property competitive?
Here are some simple rules of thumb to consider when preparing a property to sell:
- Think about where to invest the money: The kitchen, floors, and the bathroom tend to get the highest return. If done correctly, sellers can expect to see a significant return on their investment. Keep in mind that changing plumbing and electrical can become expensive quickly and often to provide less return then changing the over all aesthetics would. How much a seller decides to spend has to do with the current condition of the property as well as the available budget.
- Work with what you have: Utilizing some of the existing materials to save on costs is a strategic move. For example, simply reglazing a tub or refacing existing cabinets can save an owner a lot of money while still giving a newly finished feel.
- Keep it neutral: Consider consulting with a designer prior to choosing finishes and work to keep the feel clean and modern.
- Don’t forget about simple fixes: Upgrading appliances, installing new lighting fixtures, applying a fresh coat of paint, and maximizing storage are all simple ways to add great value.
- Add more punch by organizing and staging: Staging is such a vital part of the selling equation that many don’t give enough credit to. Virtual staging in photos can only take one so far. The over all “curb appeal” of the property is greatly increased by bringing in clean, modern furniture and giving the property a hotel-like look and feel. Also, the importance of “decluttering” personal affects, as well as utilizing simple white towels in the bathroom can really make an impact!
While buyers will ultimately determine the value of the upgrades made to the property, the properties that are more renovated and staged will always sell more quickly and for more money than their counterparts being sold “as is.”
When thinking about selling, the best place a homeowner can start is to connect with a real estate professional who can provide an overview of your property value and strategize a plan of action prior to placing the home on the market. Once a homeowner is working from the projected numbers, he can then create a budget for preparing the home for market and hire the appropriate contractor to make sure the home is positioned properly. By following these simple guidelines, the owner is set up for success. The property will be more competitive and its condition will entice the right buyer to make an offer.
