Would you listen if I told you how to turn $100 into $20,000?
Well, get ready, listen and learn because this article will show you exactly how to do just that the next time you sell your home.
Spoiler alert! It begins by cleaning your room.
Which Room Is Worth More?
If you had to guess which of the below rooms is worth more money? Which would you guess? The first room or the second room?
If you look closely, you'll see they're the same room. But the first version of this room will result in the seller making significantly more at closing than the second room. Do you know why?
What Buyers Want
Do you know the #1 thing every buyer looks for when purchasing a home? The answer is space.
They're literally purchasing a patch of ground on planet earth. And, for the deal to be worth their while, they need to believe that that square patch of ground is worth what they're spending.
How Value is Defined
This need to value a patch of ground is why, especially in markets like New Orleans, where every patch of ground is a little bit different, we assign a property a value based on size.
The math is simple. We calculate a property's value based on what buyers have spent on similar patches of earth nearby divided by the size of the property. The resulting ratio is known as "dollars per square foot" or "$/sqft" in shorthand.
The more desirable the location of that patch of ground, the higher the $/sqft. Similarly, the more attractive the place on that patch of ground is, the higher the $/sqft.
Which Kitchen Is Valued Higher?
If you had to guess which kitchen image below would get higher offers from buyers? Which image would you choose?
Both images are of the same kitchen. Both are taken from similar angles. But the first image clearly conveys more space.
How Value is Perceived
The real estate industry trains buyers to value perceived space. HGTV, Architecture Digest, and Zillow all show us spaces for prices. Our brains pick up on the $/sqft, whether explicit or implied.
The bigger a space feels, the more value our brains assign to it.
When we say things like, "wow, it's so light and open and airy," we're really saying, "wow, look at all this space."
So what does ''light and airy'' have to do with you making $20,000? How can cleaning your room lead to your home having more space? Simple.
Which Room Feels More Valuable?
Which version of this dining room would you feel better about spending half a million dollars on?
By now, you've caught onto our trick. Same room. Higher perceived value. The home this dining room is in sold for $525,000, setting a record in the neighborhood for $/sqft.
How to Add Perceived Value
Buyers will pay more for something they perceive as having more value. Buyers perceive homes with more space as having more value. Buyers perceive a clean and uncluttered room as having more space.
Thus the less cluttered a room, and the more floor they can see, the more they'll value their brains will assign to the space. And, the more money they'll offer for your little patch of ground.
So what's $100 have to do with $/sqft? I'm glad you asked.
Before you list your home, take inventory.
Is everything in your home essential?
Will you die without it?
Does it convey size, scale, style, and usability?
Does it highlight a feature or detract from something less desirable?
Or does it just sit there taking up space?
For example, if an armoire is about 3 feet deep and 5 feet wide, it's sitting on 15 sqft of visible floor space. Now let's say the going rate for a home in your area is $300/sqft. So that armoire is sitting on $4,500 of visible real estate!!!
[Side note: armoires, coat racks, etc. also convey "this house doesn't have enough closets!" but that's another story].
Now, look around. What else is taking up space without contributing to the value or perceived enjoyment of the home? A desk and a chair? A filing cabinet? A basket of blankets? A bin full of toys? That magazine rack?
In just one or two rooms, it won't take long to realize that many items are taking up space without contributing to value. For example, if the combined total of these items covers just 6 x 12 feet of the patch ground you call home and are listing for sale, you can save $20,000 for $100.
How? 6 x 12 is about the size of a medium, climate-controlled storage unit at a storage place by you. And guess what? That medium-sized storage locker will run you about $100 a month. Many storage centers also run specials where the first month is free!
What Would You Move?
Knowing what you now know. What items would you remove from the image below to give the perception of more space?
Did you choose a similar number of items as we did when we transformed the room in the picture below?
What to Do When You List
Less stuff in your home means more visible space when it's listed. People value a house by its perceived size. The more space they see, the more value they see.
So if you're looking to make a quick $20,000 when you sell your home, the answer is simple. Remove a medium storage locker worth of belongings. It takes one to two months to list and sell a home, which is about a $100 storage budget.
Want to add even more value? Get a large storage locker. Leave only what's needed, and store what's not. You'll sell your home for more money and spend less to get it.
Sure there are other tips like lighting, paint color, and styling to make your home feel like it's worth even more money. And, there's an art to knowing 'what's needed and what isn't.'
Want more tips on how to earn top dollar for your home for less money and less stress? Keep reading our series, "Level Up Your Listing." And when it's time to move on, work with Team Cool Murphy; we've got all the tips and tricks to get you there.
We will walk through your home and prepare a custom plan with exactly what to keep, what to move out, and what to keep and move within the home. We can even get the painters, organizers, and movers to do the work for you. You'll get top dollar for less stress.
***pictures above are all before and afters on a Team Cool Murphy property listed in Bywater in the Fall of 2022.
Voted Neighborhood Favorite by Nextdoor, Team Cool Murphy is a top-producing, licensed real estate team based in New Orleans, brokered by Cool Murphy, LLC.
Celebrated for her next-level creative approach to real estate, Elisa Cool Murphy is an award-winning, top-performing agent in New Orleans and the founder and leader of Cool Murphy, LLC.
Contact Her -
email: cool@coolmurphy.com
Facebook: @homeinneworleans
IG: @coolmurphynola
YouTube: @coolmurphynola
phone: 504-321-3194
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