Owners are often overwhelmed when it comes to valuing their assets. The reason for this lies in the vision of both parties in the appreciation of the property itself. The seller is usually emotionally attached to the property, and the buyer negotiates based on profitability and considers their own needs as the most important criterion. That’s why we want to raise some points that a homeowner should consider when selling.
A professional NBA basketball player or a professional Premier League footballer, or a successful actor, buys luxury properties with lots of space and amenities that an average person cannot afford. Here, price and income are not the deciding factors. Here, convenience, privacy, and emotion are the driving force, so money typically plays a minor role in these real estate transactions. This also happens sometimes in holiday homes and second homes in the south and by the sea, when the dream seems to come true and the economic side is put aside, and emotions are the decisive factor. However, this does not always have to be the case, and there is also a marked shift in pandemic times.
In most cases, however, there is a big difference for middle-income homeowners. Because whenever they want to resell their house again, they notice what they consider an asset to their property, such as a swimming pool or an elaborate garden. It can be the opposite for the buyer due to the operating costs that are more important to them than the amenities.
As difficult as it may seem for many homeowners, the market doesn’t care how much you invested in the property before. In addition to your preferences, some factors increase the long-term value of a property. Others simply aren’t taken into account because they don’t seem necessary to the buyer either.
That’s why we should start describing them because both parties must know these criteria.
If you are the owner, you have the advantage that you can design the house however you like. Individuality can sometimes be a shot in the foot, especially when the house is to be resold.
As an owner, you also have to put yourself in the buyer’s shoes. The buyer always starts to calculate what the house will cost after all the work and construction that is part of their lifestyle and needs. In other words, if I have a 40 m2 Roman-style bathroom in marble and pink, this is a cost-intensive construction space for a buyer who needs a bathroom with minimalist furniture and a shower. Because the art is finding a customer who has precisely the same sense of taste as the salesperson, and that’s very unlikely in most cases. Therefore, the principle of selling patterns is generally more than luxury!
The same applies to the division of the apartment or house. The buyer can thus devalue the more individual, the more difficult and the lower the property. Again, it means a cost factor to the buyer, which he then deducts from the purchase price later when buying the property. Again, the more oriented the standard, the less chance for the buyer to make price reductions.
Owning a house has no rent costs, but it is not free. And that brings us to another point, which is maintenance. Anything that causes excessive costs, like outdoor lighting in all corners of, large pool, can reduce the value of a property. However, for the luxury segment, it can be an advantage because such equipment is usually standard.
In the case of land, the rule usually applies that a large plot of land increases the value of a property. But sometimes, this is also in the viewer’s eye; if it is too much terrain, it can entail high maintenance and gardening costs and can also lead to discounts due to incidental costs.
These rules should only be considered a guideline because if the buyer likes the house and doesn’t care about the costs incurred because he wants to buy exactly this property, the sentence remains the rule confirming only the exception of the rule. However, we believe this can help to assess a home objectively or you can request the help of an agent like quadwalls amongst others.