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Why the emotional value of your home is always the highest

Perhaps the single most asked question by home sellers during my 25 years in the property industry is “How much is my property worth?” I probably get asked this every working day! I get it, after all the price somebody is going to achieve for their home may have a very significant effect on their next move.

Now at this point, I must give a big shout out to my good friend Michelle Gallagher from JDG estate agents in Lancaster, who wrote a very similar article on this subject and inspired me to put my own thoughts into this blog.

Recently, new figures provided by the property research group, TheAdvisory showed that in almost 75% of house sales, high street agents were achieving on average 5% higher prices for their clients, than low cost budget agents, which based on current average house prices in the UK puts an average £11,000 more in sellers pockets.

Let me explain how I think this has been possible. There are in effect two values for a home. The logical value and the emotional value, which will more often than not be the higher figure.

The logical value is based purely on a monetary calculation. A lot of sellers, especially those tempted by the low cost agents, will go on Rightmove and LOOK AT what else is on the market or under offer that is similar to their own property. Zoopla does the same thing, but will also give you an approximate value based on the POSTCODE of the property and other algorithms. Many estate agents websites have their own instant online valuation tool, but again these only use Land Registry sold data for a geographical location, which does not take into account individual properties that might be unique or situated on a particular road that is extremely popular and will always attracts a premium price.

Therefore these online valuations can only be RELIED UPON AS a very rough estimate.

The Emotional Value

There is a saying in the property industry: “A property is only worth what somebody is prepared to pay for it” and that is definitely true. But the emotional worth is higher. It is the top amount somebody is going to pay. However, to achieve this there is a process which we at Maurice Kilbride like to work ON together with our clients in order to create an emotional value which will appeal to the senses of viewers/buyers. They have to want it just that bit more AND WILL be prepared to pay for it!

To give you an example; we recently sold a property in a very popular and fashionable road just outside Cheadle Village. Two other agents had valued the property at £250,000. Knowing the particular popularity of the road and having sold a number of properties there in recent years, we had registered someone the week before who had specified an interest in anything which came up on this road. The property was beautiful, and I suggested to the seller THAT we initially try marketing the property at £265,000. It was sold within 48 hours at £264,000 to the buyer we had registered.  Needless to say both seller and buyer were delighted!

That’s just one example. Usually the process involves seller and agent agreeing any pre-marketing work necessary to make THEIR home stand out from the competition.

Once the property is “market ready” it is important to get some high-quality photography, the shows of the property in its best light and grabs buyers attention.

Our particular peccadillo is a property having a smart front door, gleaming windows and well stocked window boxes or colourful hanging baskets, depending on the time of year. If the property has a garden, make sure it is neat and tidy and replace/repair broken fence panels and gates. Internally ensure the property is immaculate, uncluttered and smells fresh. Bedding needs to look crisp and clean ahead of viewings and the grouting in the bathroom should be white & bright!

Once the property is “market ready” it is important to get some high-quality photography, THAT SHOWCASES IT in its best light to grab the attention of prospective buyers.

A good local agent will have an established database of buyers and if they are really on top of their game, will know potential applicants that will be interested in your property and if the emotional connection is made, you can bet your bottom dollar that there is every chance they will pay a premium price.

If you are considering a move in 2019 and would like to discuss the best way of achieving the emotional value of your home, call me on 0161 428 3663, e-mail mk@mkiea.co.uk or pop into the office for an informal chat and a brew.

Thanks for reading

Maurice

The Property Ombudsman Chartered Trading Standards Institute