Bessie Hassan | Money Expert at finder.com.au
Selling your property is no doubt an emotional journey to embark, and because your home is most likely your greatest financial asset, you need to be smart about how to appeal to future buyers.
Like many facets of life, it’s about knowing your audience. You need to profile your future buyer so that you can get strategic before putting your property on the market.
Here are 5 cost-effective ways to attract the right buyer demographic and achieve the highest possible sales price for your home.
- Research the people of an area.
Take the time to research the demographic profile of your area. This will give you a snapshot of the type of people that live (and are likely to buy) in your suburb including their age, gender, disposable income as well as their behaviour such as whether they prefer to buy or rent, and the type of property and suburb characteristics they may be willing to pay a premium for.
Get a free suburb profile report from local agents or do a casual search online on sites such as Residex or APM PriceFinder to access information and reports that will give you a better understand the demographics of your area.
Are they independent youths that value convenience and modern designs, or are they young families that will pay more for security?
Once you have a grasp of the type of people that are likely to buy your property, consider how people want to live and the type of property features they’ll be willing to pay a premium for.
For instance, if the majority of residents in your area are young families then you should let this guide your renovation choices by making your property child-friendly. This may involve installing in-built child-proof locks for your windows or knocking down falls to create an open plan space where there is greater visibility from the kitchen into the outdoor area.
Similarly, a recent finder.com.au study found that Generation Y (23%) are the most likely to pay more for a property with a dishwasher so if you knew that your future buyer could fall into this demographic, you may want to spend that extra $500 on a quality dishwasher.
- Be selective with value-adding activities.
If you’re planning a renovation or upgrade, consider the areas or rooms that are worth improving. For example, it makes sense to renovate high-traffic areas such as the kitchen or bathroom compared to a guest bedroom which won’t be utilised as often.
To help allocate your renovation spend, speak to buyers agents to get a feel for which renovation projects will add the most value to your property.
You can also look at similar properties in the area to get inspiration for your renovation choices.
A simple way to improve the attractiveness of your home to future buyers is to add another room – converting a 2-bedroom property into a 3-bedroom property will up the sales price dramatically.
- Don’t overcapitalise.
Overcapitalising is one of the biggest renovation blunders you can do and it will jeopardise your ability to secure a good sales price. This can be avoided with thorough research and planning. Research local market trends, understand the supply and demand factors of the suburb, and speak to local real estate agents and other professionals such as a mortgage broker to find out how you can best appeal to a future buyer.
Set yourself a realistic budget and timeframe for your renovation and don’t be tempted to splash out on projects or features that you’re target market won’t pay a premium for. Use online resources such as a calculator or otherwise speak to an accountant to help you establish a manageable budget.
- Invest in kerb appeal.
Enhancing your kerb appeal is a cost-effective way to breathe some life into your outdoor area. Small projects such as a fresh coat of paint, new landscaping, replacing your fence, or cleaning your gutters can make a huge difference when buyers form a first impression of your property and whether they can imagine themselves living in your home.
Knowing how to appeal to your future buyer is one of the best ways to be strategic about selling and marketing your property. Research the demographics of the area, understand what they value, and plan your renovation carefully, and you’ll maximise your chance of securing a profit margin.
Bessie Hassan is the Money Expert at finder.com.au.