Perception and reality are often very different things. Even more important is the fact that perception has a lot more do with what you can charge for a product than what it is really worth in absolute terms. And this holds true for real estate just as much as it does for retail sales. Let’s take a look, then, at just what perceived value is and how you can make it work when selling your house.
What Is Perceived Value?
Perceived value, as the term suggests, is mostly about perception and has little to do with objective reality. It is a consumer’s personal opinion about a particular product’s value to her and has little connection with the product’s actual market value. This perceived value is arrived at by a consumer on the basis of how well she thinks the product can meet her needs or requirements.
Savvy marketers are well aware of this, and that’s why they always emphasize benefits over features. The main thing for consumers is what the product can do for them. So that product’s perceived value – what consumers are willing to pay for it – is determined solely by how well consumers feel it can meet their needs and provide the benefits they desire.
And perceived value is hugely important in the real estate world. Buyers will pay much more for a house that will give them the benefits they want because they perceive a house like that to have more value. For example, 160 brand new tiles on a bathroom floor won’t’ increase perceived value. But an up-to-date bathroom with inviting amenities that make using it such a pleasure that it will brighten the mood of everyone living there will. And buyers will perceive that bathroom to have more value.
How to Increase Perceived Value When Selling Your [market‑city] House
Effective tactics for increasing perceived value include:
PAINTING INTERIOR AND EXTERIOR
Almost nothing turns buyers off as much as faded, peeling paint, either inside or outside a home. If you repaint in neutral tones, your house will have more value for buyers.
PERFORMING MINOR BUT VISIBLE REPAIRS AND UPGRADES
Your house will have more perceived value if it appears to have been well maintained. So be sure to make all those very noticeable repairs and upgrades.
CLEANING AND DE-CLUTTERING THOROUGHLY
Similarly, that well-maintained appearance can be further enhanced if you clean and de-clutter thoroughly. Strive for a well-tended lawn, sparkling windows, shiny floors, and order throughout.
PLANTING SOME FRUIT TREES
Most people are leaning toward green today, so planting fruit trees can add to perceived value. Everyone loves to gather their own food because it lends a sense of self-sufficiency.
HIDING A BAD VIEW
Perceived value is mostly about appearances, so if your home has a bad view, hide it. If one side of the house looks out on, say, a landfill or railroad track, you should hide that by planting shrubs or putting up a privacy fence.
REDUCING NEIGHBORHOOD NOISE
Perceived value involves not only what buyers can see, but also what they can hear. So you should do everything you can to reduce neighborhood noise. You can’t, of course, move your home farther away from the airport, but you can put in fences and hedges to reduce the noise. A quiet, pleasant home will hold more perceived value for buyers.
An added bonus is that many of the things you do to enhance perceived value for your house will also increase the appraised value. There’s just one catch, though. The things that increase perceived value can differ from local market to local market – different buyers value different things. That’s where your local real estate agent can be an invaluable asset.
Perceived value is sometimes a tricky thing, so let our experienced agents give you a hand. Find out how by contacting us today! (720) 378-3988