We’ve all heard the agents’ mantra, “Position, Position, Position”, but what is the point of marketing a well located home when buyers are turned off by its poor presentation?
Sure, some buyers may jump at the challenge of securing the location regardless, but without good presentation, competition for the property will be lessened, buyers that are interested will simply reduce the price they are prepared to pay, and the property will be undersold. All for the sake of what - $10,000 or $20,000 spent on paint, a few repairs, a bit of landscaping and some staged furniture? A properly managed outlay like this can easily see a four of five-fold return.
At Tower Property Advisory, presentation is a critical part of the selling advice given to all of Tower’s clients.
““We commit to maximising the sale price of every client’s property, so much so that we offer to fund presentation work if the client does not have the ready cash to outlay”, says Phil Hoopmann, Senior Property Manager. “Repayment is made out of the release of deposit, or at settlement, so at no time does the client have to contribute their own funds”, says Phil.*”
There are property presenters in the market that also offer to fund presentation work, with payment out of settlement proceeds, but typically they are aligned with a limited number of contractors and their work comes at a premium price. With Tower, you get the best local contractors based on the specific requirements of the property, without having to pay a premium.
Analysis of sales results over several years, based on our experience, demonstrates that Tower, on average, achieves a 4.5 time return on presentation spend. If improving the presentation of a property is a viable proposition, then why not take advantage of the opportunity? It won’t be available to you again.
A word of warning though; it is equally important to know where to stop when it comes to presentation work. A fully renovated kitchen and bathroom may add value to a property, but it can be at the risk of overcapitalising. Why outlay money that isn’t going to be recovered in the sale price? In these situations, it is important to save your time and money and let those grander undertakings become the dream of the new owner.
In any property market, good property presentation should be considered an important component of generating competition and maximum price. In a falling or buyer’s market, however, it becomes essential.
Buyers with choice will always gravitate toward the better presented properties. On the other hand, properties for which presentation has been neglected will end up passed in at auction, clocking up days-on-market, and further diminishing in value.
So, don’t get caught out. Regardless of location, ensure that you focus on presentation to maximise price.
* Maximum funding of $50,000 per property. Terms and conditions apply.