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Sunday, 15 January 2012

The Art Of Creating Value

theappraisercoach.com
We all know about valuers, valuations and value itself. Value is what a property is worth in the open market. Most however, do not know how this value is created. Indeed, if we are to discover a way of creating property value then for sellers this will be an enactment of a humorous story in which an academic challenged pupil found a mathematics answer book.

How is property value created? What is the art of creating value? This is a way of creating selling points at the property and the location of a property and being able to skillfully sell these in the market. Through the efforts of a capable negotiator the selling points should be made to appeal to the prospective buyers’ five senses so that they have favourable perception of the property. Sprucing up the image of a property should target these five senses because they are the avenues through which information is gathered and this information is used to make important decisions.


                                                                             
 When buyers visit what do they see, hear and smell at the property. In their imagination are they having a personal connection with the property. They should even caress its smooth glossy walls as if they are appreciating the tender skin of a newly born baby. They should be carried away by the lovely views of the dining room. They should fantasize about themselves enjoying the very best of their food on its tables.

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What do they see and smell? A strong stench of sewerage hazardously polluting the air or a beautiful rose garden that blossoms every summer into a picturesque , fresh and fragrant assortment of colors. What do they hear? Some of your neighbours trading insults therefore, reflecting the state of a community that lacks peace and tranquility.

Besides peace and tranquility the property’s location should also offer such goods and services that are critical in today’s modern life. These include medical care, education, shopping and recreational facilities. Quality urban planning, a favourable history, proximity to a major business center and the CBD. Proximity to the CBD is highly regarded due to the economic influence or the centralized nature of the Zimbabwean town-planning regime.

We cannot however, do justice to the topic . The Art Of Creating Value if we do not explain the critical role that is played by a property negotiator. This person is the artist who conjures the magic that creates value. The negotiator is the one who personally sells the property to the prospective buyers. He should have special skills because when a lot of dollars are involved buyers are very shrewd. If you are selling on your own then you better be good otherwise you will watch as a smart buyer successfully negotiate your price down. All your selling points will amount to nothing.

Property buyers unleash a diversity of tactics that are designed in such a way that you make as much concessions as possible. Only a professional negotiator is trained to counter these tactics and defend the asking price. Selling real estate is not easy and it is a real test of character. Some of the names given to the tactics that are employed by the buyers are red herring, false impasse, mister no, small bites, time pressure etc.

In conclusion we have seen that in order to create value there are things you should do on your property and there are things a professional should do for you. Selling real estate is not easy but it still remains one of the best ways of earning a good profit.



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