Preparing & Maximising Your Home for Profit – Step 1
Regardless of whether you’re considering putting your home on the market or completely resolute on the idea of selling, this guide will guide you through the steps to maximise your outcome and ensure the result is the very best one. In the following blog posts, we will outline everything to help you in this process, over three key phases.
Step 1 – What to Consider
Your home is your greatest asset
In life and real estate, it is often said that your principal place of residence is possibly your biggest asset. As industry professionals we find this true for so many people in the community who we represent.
With this in mind it is important that you do all you can to maintain the property throughout its lifetime, in order to protect and grow your asset. This way, at the time of eventual sale, you receive the best possible cash profit from your investment.
Your home could deliver you a tax-free windfall
Selling your home is a valuable opportunity for wealth and profit. Unlike other financial investments, your principal place of residence is free from capital gains tax and stamp duty.
Selling is a one-off opportunity for profit
Therefore, a chance of a tax-free gain is rare and should be seized with both hands. Selling is a one-off opportunity for profit Selling your home presents a unique opportunity to make a good deal of money without you having to work hard for it.
Typically, every dollar your home sells for over the perceived market value is worth two dollars of your hard-earned labour. Secure the dollars you deserve for the property you own. You get only one chance to sell for profit and then the value passes on to the next owner – so make the most of it!
Clean and tidy homes generally sell better
If you do the work for a potential buyer and your property is clean, crisp, complete and:
- is well maintained and freshly painted;
- has manicured lawns and the gutters and downpipes are free from rust and holes.
- has eaves that are spotless and fresh.
This could have a significant impact at sale time. You have the potential to earn significantly more than you expect. The magic happens when you take the hard work out of the equation. Everyone is so busy, potential buyers are often prepared to pay for somebody else’s sweat and effort. You can profit from that.
A home that doesn’t require work is more attractive
Maintaining and preparing your home for profit is a successful strategy for everyone involved.
Often incoming purchasers are stretched to their limit and would not qualify for a renovation loan. This is the reason why people will pay more for a finished, neat and well-maintained property.
A bank will loan on a property’s actual current value. A bank does not favour lending on unfinished or damaged properties. However, if the property has a clean bill of health, the new purchaser is effectively getting a renovation loan on a product with no risk.