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Seth Watts, Co-founder of CampaignAgent discusses the adage "Better presented homes sell faster and for more". But is it backed by data?
Maximising Your Vendors’ Property's Value: Insights from Real Estate Expert Seth Watts
In the world of real estate, the adage "Better presented homes sell faster and for more" is a familiar day-to-day saying. But is it backed by data? Seth Watts, Co-founder and Chief Revenue Officer of CampaignAgent, sat down and delved into the behavioural data of thousands of vendors with the CampaignAgent marketing team.
Seth shares his insights on the returns vendors can expect when investing in property preparation and why it's not just good for vendors but also for principals and listing agents.
Q: Seth, they say that expert advice helps unlock a property's true potential, but what does the data tell us?
That's true. Experienced real estate agents have a keen understanding of the repairs or improvements that can enhance a property’s sale potential. This expertise is essential for maximising the sale price of the vendors' property.
However, convincing vendors to invest additional funds, on top of marketing and commission expenses, can be challenging. Yet, the numbers don't lie – CampaignAgent's data reveals that vendors who invest in preparing their property for the market often realise a significant return from those who do not invest in preparing their property.
Q: What should vendors realistically spend preparing the property for the market?
That's the million-dollar question and there are many answers to the question. The property itself is always the starting point, so it’s nearly impossible to put an actual figure on it.
While investing up to $10,000 before selling can significantly enhance the sale price, a major renovation for an older, outdated property might require an investment of $100,000, which may not be recouped in certain markets and is subject to delays and cost blowouts. A great rule of thumb is that if the cost of improvements is more than the standard commission fee, it’s probably too ambitious.
Timing is important for a busy agent. We live by the mantra that a slow deal is a bad deal, so focus on simple, high-impact upgrades that can be completed in 2 - 4 weeks.
With this in mind, here are some suggestions for agents looking to recommend pre-sale preparation work:
- Decide if you want to act as project manager for the work or if you will simply provide recommended tradespeople.
- Many vendors will want to get at least two quotes, so it’s important to have two recommendations for each trade type.
- Offering to act as the project manager can be a great closing tool, but it means that you’ll own the outcome, which can jeopardise your vendor relationship if things don’t go to plan.
- On the other hand, simply providing recommendations takes the process out of your control. If you need to keep momentum behind the listing, it’s important to monitor the project indirectly.
- Regardless of your choice, make sure your recommended tradespeople are reliable, insured and reasonably priced. Their work will reflect on your reputation.
Q: Why do you think it's in the interest of principals and listing agents to assist vendors through this critical stage before going to market?
It's the responsibility of professional agents to guide vendors through the selling process. Most vendors only sell their property once or twice in a lifetime, so they expect not only expertise from their listing agent but also a commitment to maximising the sale's potential. Providing advice on property improvement can achieve this potential and be a genuine unique selling proposition that offers ambitious agents a tool to differentiate them from the competition.
Q: What's the one key takeaway?
Sure... "Home preparation done right is a win for you and your vendors. In a crowded marketplace, it’s a clear and simple differentiator and using these tips will help you win more listings and get better outcomes for your vendors.”
For more information, visit campaignagent.com.au.
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