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I'M Onyi Silmon

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Three Reasons Why Good Design Sells Homes

Published August 15th, 2019 by The Silmon Group

There is a saying by Adam Judge, “The alternative to good design is always bad design. There is no such thing as no design.” 

New homeowners tend to be obsessed with design. Am I right? I mean you signed away everything other than your right kidney to finance that home, right? So you see it as a sound investment to transform your space by utilizing good design. 

What if I was to tell you design is even more important when you are ready to sell your home. Would you believe me? 

Yes, the goal has changed which is to sell your home quickly and for the highest possible price. Poor design can affect this and decrease the likelihood of achieving this.  Now every month your home is on the market you are paying for a home you have no desire to live in. This will make the mortgage bank happy but I am sure you will not be!

Design is necessary and not just any design but like Adam Juge says good design to get your home sold. Here are three reasons why?

You Only Want Good Design Otherwise…

What is good design exactly? Good design generates a positive emotional response from interested buyers. Positive emotions towards your home make buyers want to pull out their checkbook and present you an offer. If you are not invested in convincing buyers to fall over backward to buy your home, you are leaving money on the table. 

Learn the tricks to have buyers vying to buy your home NOW!

 

Hiring a design expert can help point you in the right direction and maximize your home’s selling potential.  Design experts are worth every penny they cost you. These experts know the market trends that attract buyers and get your home sold quickly. They can help you transform your home into a buyers' dream and get the offers you desire. 

Great design shows potential buyers that you are serious and increases the perceived value which helps justify the asking price. The caveat to this is your home is still within fair market value. Something you and your realtor will determine. Because homebuyers will, of course, use recent sales data to evaluate the value of your home along with the aesthetics.

Although without good design, a catch 22 develops buyers will likely balk at your asking price, even if the data is in your favor. Leaving you with buyers who are not willing to present offers in line with the market. So if you want high offers its best to make an investment in good design.

Buyers Expectations Must Be Your Expectations

It is understandable that when you are ready to sell your home, what buyers want is the furthest thing from your mind.  You expect buyers to cover the cost of creating the home they desire, not you.  Sounds perfectly reasonable, but there are multiple forces playing against this perspective.

    The rise of the dream home on television and the internet

  • Shows like Fixer Upper, Property Brothers, and House Hunters, are shifting buyers' belief that great design is only one home away. Combine this with the internet, which showcases homes with exceptional finishes and floors at the click of a button, it is no wonder that buyers are more design-savvy. 

    New home builders are spending money to attract buyers

  • Builders vying for the attention of buyers know to invest in design. Builders spend millions to employ the newest design trends to make their properties stand out in the market. For instance, due to a rising need for adult children to continue living with their parents, many new builds in the Houston market feature mother-in-law suites. 

With the current market saturated with new home builders and savvy buyers. Homeowners need to contend with the idea that designing your home to meet buyers' expectations cannot be ignored.

Price Vs Cost 

The great Zig Ziglar differentiates between price and cost this way, “price is a one-time thing. Cost can go on forever as long as you have the particular product” or in this case  “home”!

In essence, paying a fair price upfront is less expensive than the long-running cost associated with the less expensive option. Take this story for example: 

Bob and Sue have lived in their home for ten years. They love it but it is not fitting the needs of their growing family. After much talk and frustration, they decide to move and begin the process of selling their home.

One look at Bob and Sue’s kitchen and it is apparent they have not invested in any updates since they moved in ten years ago. To them, the thought of investing $10,000 on updates now seems unnecessary since they are moving to another home soon. 

So they price their home based on what other homes sold in the neighborhood and what they believe is fair.  Months go by without an offer. Buyers take one look at the kitchen, see work and walk away.

Every month Bob and Sue are without an offer means paying the mortgage and utilities which averages $3000 monthly on a home that no longer suits them. Combine that with the cost of the perfect new build they recently fell in love with, and placed a deposit, while waiting for their home to sell $5000. In one month it costs them $8000 to not update the kitchen.

It takes a total of four months to find a buyer willing to take on the expense of updating the kitchen. Three months prior to this, Bob and Sue reduced the price by $5000 to attract more buyers in order to expedite the purchase of their new home. Now the total cost for not updating their kitchen is an additional 9,000$ plus the 5,000$ price reduction. How much is all that? Here it is so you can see it up close.

Price Of Kitchen

Labor and Materials: 10,000$

Total Price: $10,000

Cost Of Kitchen

Carrying cost for current home: $3,000 x 4 months: 12,000

New build deposit cost: $5,000

Price Reduction on home: $5,000

Total cost: $22,000

As you can see the price of the kitchen update which is $10,000 is less expensive than the cost associated with not updating at 22,000$! 

Design is not a  “nice to have” when it’s time to sell your home. The benefits of a well-designed home attract the kind of offers that ensure your ability to move on to the next chapter in your life. Take the time to invest in your future buyer before you place your home on the market. Take the time to invest in good design.

Want to know exactly how Christine and I handle design to get your house ready to sell and help you make improvements to increase value! Check out this video below



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