Perception and reality are often very different things. In fact perception has a lot more do with what you can charge for a product than what it is really worth in absolute terms. This holds true for real estate just as much as it does for retail sales. Let’s take a look at just what perceived value is and how you can make it work when selling your Long Island 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 him or 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 he or she think the product can meet his or her needs or requirements.
Savvy marketers are well aware of this, and that’s why they always emphasize benefits over features. Consumers are mostly concerned with what the product can do for them. 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.
Perceived value is very important in the real estate world. Buyers will pay much more for a house that will give them the benefits they want because that is more valuable to them. For example, 160 brand new tiles on a bathroom floor won’t increase perceived value but an up-to-date bathroom with inviting amenities will be perceived as added value to the consumer.
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 the existence of 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, it would be beneficial to make efforts to downplay it. If one side of the house looks out on, say, a landfill or railroad track, planting shrubs or putting up a privacy fence will go a long way in creating an environment that is much more inviting to potential buyers.
REDUCING NEIGHBORHOOD NOISE
Perceived value involves not only what buyers can see, but also what they can hear. 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 Long Island house will also increase the appraised value. However, keep in mind that 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 can be tricky, so let me use my experience and local expertise in giving you the assistance you need. Find out how by contacting me today! (631) 357-4819