SELLING a property is no longer an easy task. With the upcoming supply of houses available in the market, a purchaser has choices and hence it is advisable for purchasers to analyse on the property before buying it.
In order to sell the property at a higher price, the seller needs to do some research on the demand and supply of the area. A high demand will drive the property prices up.
The next thing is to make sure that one buys a property below the market value so one could profit from the differential amount of current market value and the purchase price.
Besides all of the above, there are six other ways how a property owner can increase property value to sell their property at a higher price.
Firstly, a renovation makes lots of difference in property value. All properties do not come in the same value although both properties may situated side by side next to each other. One reason is the renovation.
However, not all the renovation will be taken into account. In the valuers’ point of view, renovation such as the change of flooring, adding build-in-wardrobe or build-in-kitchen cabinet, plaster ceiling and also grill can add value to the property, and hence the properties are sold at higher prices.
Secondly, the maintenance of the property is also very important. The owner of the property could have dumped a fortune into a renovation, but if the maintenance of the property is not well kept, the property will continue to deteriorate.
Some houses may be renovated recently but the renovation is obsolete or the condition of the renovations is poorly maintained or damaged.
The value of the aforesaid renovation would not be included in the value of the property.
One important thing that the property owner must do is to have pest control to prevent termite from destroying the wood structure of the property, especially the roof of the house. The façade of the building also plays an important role in giving a good impression to the potential buyer, therefore the property owner should also take good care of the façade by refurbishing the property from time to time.
With the crime rate accelerating these days, safety has become a concern when it comes to purchasing a property. A property that comes with safety and green feature will gain popularity.
Hence, the third way to sell your property at a higher price is by installing safety feature such as alarm system, CCTV and/or smart home system.
In the valuer’s point of view, the property value is mostly calculated through the floor area (built-up area) of the building. Another way of increasing your property value is to do an extension of the building.
However, this has to be done in a legal and permissible way. In other words, the owner of the property should obtain a permit for the extension from the council before the work has started. Without the permit, the additional space created will be not be taken into account.
Property with existing tenant that comes with high rental income will be able to sell at a higher price to the purchaser who is also an investor. Some of the house with rooms renovated as ensuite and are able to rent out each room individually can fetch as high as 10% rental yield. This can also increase the market value and the selling price.
Last but not least, if the property is facing the main road, the property is allowed to convert into commercial property. Commercial property is valued at a higher price than just a normal home.
A conversion will require the home owner to pays approximately additional of 10% of the increment of the market value from residential to commercial property but it makes a lot of difference in terms of the selling price.
Vicky How is a licensed valuer registered with the Malaysian Board of Valuer, Estate Agency and Appraisal (BOVAEA). She is currently a director of Henry Wiltshire, an international estate agency company.