Boston Pads, a Massachusetts-based information and technologies services provider primarily delivering solutions to the real estate industry, gives copious tips in buying, renting, and managing properties. Whether a person is interested in selling a home, renting out a space, or finding tenants as a landlord, there are a number of factors that determine a property’s value. Since its founding, the Boston-based service has learned how to deliver value by helping landlords gain access to data and information that assists to maximize monies of the properties they own.
An arbitrary dollar sign on a “For Sale” or “For Rent” posting does not mean anything unless the home is purchased or rented. When it comes to pricing a home, for example, sellers have to be aware of a number of different factors and influences that affect the final listing value. For starters, Boston Pads notes housing markets are largely local and differ based on a region. Near metropolitan areas, for instance, houses are typically more expensive (though in-city salaries are usually higher) because of demand. A property’s demand is everything.
Sellers are encouraged to enlist the help of real estate professionals like those found on the Pads website to adequately price their properties. Usually, Boston realtors will look at nearby homes that are similar in style and size and then investigate previous price trends. If one person bought an identical home for $950,000 last year, however, that does not mean another home will sell for the same amount. There are a lot of factors at play when it comes to the listing and sales price. Typically, the sales price is 5 percent less than the listing price. This is good for buyers, bad for sellers. With proper realtor backing, though, sellers can increase the value of their homes.
Not utilizing a real estate professional’s talents is risky. Sellers are left to the wolves and have to do research on their own. This can lead to misquoted prices that could either keep a home on the market for an extended period of time or sell under its actual value. It is also important for sellers to analyze buyers and sellers within a market. Real estate is competitive, especially when there are numerous properties for sale and rent in any given area.
Another important consideration to keep in mind is a local market’s absorption rate. This time span illustrates the estimated amount of time it will take to sell all of the available homes in a competitive area. If there are a lot of homes, sellers often have to price down their own to become more competitive.
For a realistic listing price, homeowners should look into getting an appraisal from a certified appraiser. They have the experience and knowhow to accurately price a home. Another important element is timing. The real estate market is always shifting, and with it goes sales prices, rents, and other numbers. Boston Pads encourages sellers—and even buyers—to consider the options against current market trends.
Demetrios Salpoglou, the CEO of Boston Pads, says a property’s value is influenced by a number of internal and external factors. Homes are investments, and like any major investments (an education, a car, stocks, etc.) it is essential to take care of them. While people are free to live how they will in the comfort of their own homes, when it comes to selling properties or seeking out tenants for apartments, a building is only as good as it appears.
For sellers, upping property value takes time and effort. The benefits, however, can greatly outweigh the work when they can sell their homes for more than their original buying price and cost of the improvements. Indoor systems like plumbing, extra space, and HVAC systems are major factors in a potential buyer’s decision-making process. Unless buyers are looking for a fixer-upper, they tend to be turned off by aging and malfunctioning indoor systems. Sellers can address these issues long before listing their homes by enlisting a home inspector to look for any problems. The same goes for internal wiring and other necessities.
Homeowners can also expand their homes by adding extra floor space. Floor space is often worth more than a few square feet of backyard. Remodeling an attic or basement is a good idea, too, and can turn a two bedroom, one bath home into a three bedroom, one-and-a-half bath home that can greatly improve its property value. Even if the return on investment when building an attic bedroom or additional bathroom does not numerically payoff when homeowners sell, these amenities often influence a buyer’s decision and can expedite the process (i.e. homeowners do not have to continually decrease their listing price).
Kitchens, like bedrooms and bathrooms, are also good considerations when remodeling. Boston Pads says kitchens are commonly the epicenter of a home as opposed to the living room. With a minor facelift, new sinks, additional countertops, and extra storage, a kitchen can become the selling point of a property. Sellers should look for other opportunities inside their homes as well. As mentioned, extra space is important to buyers. Consider adding in storage beneath a staircase, shelves in the basement, or anything else that can pique a buyer’s interest.
Green Advantage
Boston Pads provides information in refurbishing apartments and homes with green technology. Today’s buyers are always looking for ways to save, especially when it comes to costs post-purchase. Having efficient water systems, power, heating and air conditioning, and other features accommodates this market group (which most buyers are in). Investing in green tech, like building an addition to a home), is not cheap. However, the overall listing price may increase and can boost a home’s competition in a market full of homes lacking green technology.
Curb Appeal
Other than internal enhancements, Boston Pads indicates that sellers and landlords work to boost their curb appeal to entice potential buyers. Front yards, paintjobs, patios, and other features can greatly increase a property’s value especially in Boston. Buyers like to picture themselves actually living in a house when they go through a property; this often means backyard BBQs, parties, and lounging in the lawn. Boston Pads strongly advocates that every aspect of a home influences its overall listing price and eventual sale value.