Look Beneath The Surface

If you're a first-time buyer, time may expose issues you hadn’t bargained for. The same holds true for a buyer who hasn't purchased a new home in a long time. For instance, a new buyer may be enamoured by a state-of-the-art kitchen and neglect to see subtle signs of shoddy workmanship or damage. Catch words, such as "open concept," "quartz counter tops" and "concealed storage in a clean integration in the kitchen design," can be distracting. It’s time to pour cold water over this type of sales pitch.

The true value of a home doesn't rest with trending features. Don’t get me wrong. Features such as quartz counter tops are important and will help enhance a home’s value. And storage is always welcome. Just remember, quartz counter tops may be in style today, but they'll probably be replaced by a new material tomorrow. Open concept may be popular with parents of young children, but parents of teenagers (and teenagers) will probably want their own space. People who like to entertain may like open concept, but untidy homeowners may prefer to be able to shut a door on a messy family room and keep a living room guest ready. Open concept will mean a nice light environment, but higher air conditioning costs. And what about those cathedral ceilings that were the rage a few years back? They are a hassle to clean and change light bulbs, for example.

The lesson? Don't let current trends influence you on the true potential of resale value. Pay attention to the bricks and mortar, as well as the finishings. Is the structure in good condition? How old is the roof? Do the windows work properly? What is the state of the plumbing and electrical wiring?

STAGING

Real estate professionals, including most agents, love staging. And why not? It allows a seller to show off the true potential of a home. Clutter and overcrowding will cloud a person’s perception of a property. So while staging is important, remember it is only the façade.

FIRST TIME SELLERS

First-time sellers tend to base the resale value of their property on the purchase price and the cost of repairs and maintenance and upgrades. This isn't the way to measure resale value! The sale price must conform with the market value. A first-time seller may allow emotion to colour reality. You may love the home gym and pantry you installed, but it may have absolutely no appeal to a buyer. The other point is, a buyer expects a home to be in good repair, unless it’s advertised as a fixer-upper or in need of TLC. It’s very seldom that a seller recovers the full cost of an upgrade. However, if the home isn’t in good repair, it will drag the value down.

Questions or comments?

Contact me at info@cbbahamas.com.