Most property owners do not believe that selling during the peak of the property cycle achieves the best sales price for a property. Rather, it’s cosmetic renovations to a property, according to recent research conducted by LocalAgentFinder.
Cosmetic renovations was the leading factor chosen by one in three Aussies, with a quarter believing the key to achieving the best price is to sell during the peak of the property cycle. The skills of the selling agent ranked third (chosen by 11 per cent of respondents), while vendors agreed marketing strategy ranked fourth (chosen by 10 per cent of respondents).
“In last year’s market, even the ‘renovate or detonate’ properties were fetching top dollar, but as the market continues to transition, we will see that properties with a modern update or those that have been given some TLC will sell well,” Matt McCann, CEO of LocalAgentFinder, said.
“The fact that homeowners believe cosmetic renovations to be the top determinant in achieving the best sale price shows they believe buyers are looking for ‘move-in ready’ homes. In saying that, it’s also important vendors don’t overcapitalise on their renovations.”
Factors such as ‘staging’ (interior furnishings) and choosing the right reserve price were less of a concern to property owners, each chosen by seven per cent of respondents.
“Choosing the right reserve may have ranked as a low concern because vendors select an agent based on a variety of factors, with one of these factors based on the agent’s knowledge of the market. Vendors trust the agent they choose to sell their property, and that extends to the trust they have in their agent’s ability in helping them set the right reserve – the right reserve being the best price for the property, but also a realistic price,” says Matt.
The survey revealed some interesting contrasts between millennials and baby boomers. More millennials (39 per cent) believe cosmetic renovations maximised the sales price most. In contrast, older Australians are most likely to believe selling during the peak of the property cycle is the number one factor for fetching the best price (represented by 25 per cent of respondents over 60), followed by cosmetic renovations (chosen by 22 per cent of this age group).
“In most cases, over 60s have held onto their properties through a couple of market cycles, so their perception is based on what they have witnessed over the years. Millennials haven’t lived through many cycles but have seen how renovations have translated into sales success through television shows and in the media, which may indicate this,” he said.
The survey of 1000 Australian adults was produced with Pureprofile.