What is the WOW Factor?

In smart real estate investing, we look at three major components – position, property (land and building) and price. However there is another factor that is not as black and white and that we call the “Wow” factor.

Let us go in for a chat: Two very different types of Auctions now exist in Melbourne. Bid to Buy and Bid to Negotiate. Detailed Examination in Market Insight below.

The “Wow” factor is what attracts people to a certain property. It assesses the intangibles that people pay a premium for, like design, views and even the feeling or mood of a property (its karma). Sometimes its obvious, other times its not to easy to recognize and often many inferior properties have a false WOW about them, that is one that you pay a premium for but will be gone when you come to sell.

Great floor plan, good views, private back yard, great position next to shops are examples of positive WOW – providing of course we know the shops aren’t closing, the neighbours aren’t building 3 storeys, the views aren’t being built out and the floor plan isn’t riddled with termites.

Poor renovations, a pub nearby, a busy road or bad location. Sometimes the glitz and glam of a new place can look “Wow” but is really mutton dressed up as lamb – for instance, many “off the plan” apartments and units with all the electronic bells and whistles.

Either way, the “Wow” factor is a key issue to take into account when buying the right property.

Not only is it vital to long-term capital growth, but the “Wow” factor dictates how you or your family are going to feel when you get up every day in the property, invite friends over, or just sit back and relax. It even helps dictates how much rent can be charged. Does it have that something special? Is it appealing?

When you are under pressure, it’s often difficult to determine which homes have the "WOW" factor. Mistakes can be very expensive.

Dear Mal,

Trish and I would like to pass on our sincere gratitude for all the work undertaken by yourself and Ian which enabled us to acquire our home at 39 Sunbury Crescent.

After a very frustrating and unsuccessful 2 years trying to find the desired home, the professional manner in which you provided expert guidance and direction was the key factor in our being able to secure the family home which we had been searching for.

You dealt with all matters in a prompt and efficient manner, diligently assisted our search with the support of your industry expertise, and researched all appropriate matters in relation to the purchase in order to provide concise thoughts and recommendations.

Additionally, you dealt with the agents in a professional and amicable manner, especially during negotiations on purchase day which no doubt contributed to us securing the property at well below what we expected the house to sell for. The saving in the cost price subsequently turned the fee for your professional services into an insignificant investment.

Your friendly style made it a great pleasure to work with yourself. We so greatly appreciate your efforts in assisting us in acquiring the home, and at a more then realistic price for a home of great capital growth potential.

We wish you all the best for the future, and hope that your work continues to bring joy to your future clients that it did with ourselves.

Yours sincerely,

John McCormick