Homes that are in good condition typically sell for more money. But investing in improving your home’s condition when you decide to sell, is not always a smart play as you may end up spending more than you’ll gain in value.
So before you decide to spend large sums of money on improving your home in order to get a better price, consider the following:
Talk to an experienced real estate professional
First and foremost, it is advisable to talk to an experienced realtor before you start spending money on upgrades and repairs, as he or she will have a better idea on what should be done and what should not be done. What would be an absolute must do in one neighborhood could be a waste of money in another. The experience of a professional real estate agent will be very valuable in this matter.
Do a cost recovery analysis
Do the math on your upgrade before you embark on the project. Will the extra spend give you a better sale price? This is a great discussion to have with an experienced realtor, who will be able to guide you correctly.
Below are typical repair and upgrade issues when selling a home:
- Cosmetic repairs
While it may be relatively easy to change the paint, or fix cracked tiles or upgrade countertops, many times it’s better not to spend the money and leave these changes up to the buyers to customize according to their preferences.
Unless the repairs have a large impact on your home’s appearance, they should not be placed high on the list of priorities.
- Kitchen and bathroom updates
The kitchen and bathroom are 2 rooms that homeowners typically may want to use to impress buyers due to their utility function. While they likely will help increase the value of a home, the question you should ask is: are these changes worth the time and money? This is especially true in a seller’s market (which is what we are currently in) when the trend is multiple offers for a home, and properties are sold over asking. In a competitive market, buyers may overlook many things in order to purchase the home.
Fixing leaks and replacing dripping faucets or old pipes is money well spent as rest assured, prospective buyers will notice leaks and appliances that don’t work.
- Electrical issues
Don’t leave wires dangling and sockets open. These types of minor issues should be addressed, but if you are contemplating putting new light fixtures, for example, to enhance the brightness in your living room, it may not be necessary as the prospective buyer may have a differing opinion on how he or she perceives the brightness.
- Major repairs
There are major issues like faulty plumbing, foundation or water damage, or a leaking roof that should be addressed before selling your home. These are red flags to buyers and will be made apparent during the home inspection. So, if you are willing to justify a lower price, these repairs should be done either before the house is on the market or negotiated during the sale.
- Budgetary constraints
If you cannot afford to make the necessary repairs or upgrades, you still have the option of selling it as is, keeping in mind that it must be priced competitively. There are real estate investors who have the time and capital to make the necessary upgrades and repairs.
Selling a home requires experience and expertise – something our trusted advisors have a lot of. Contact us if you are looking to sell your home or upgrade your existing home.