Should I Make Home Improvements Before Selling My Home?
You’re finally ready to sell your home, are you?
Take a look around. You may have spent some money for exterior updates, though the interior looks as if a tornado has run through it. Maybe the appliances or outdated. Maybe your walls have dry rot. There are plenty of considerations to make when trying to decide whether or not you need to make home improvements before selling.
The Major Dilemma
The answer to the main question depends on a number of things. What kind of condition are competing homes in? Is the real estate market hot, cold, or somewhere in the middle?
Too many sellers put far too much money into home improvements before they put it on the market. Many of these repairs are those buyers wouldn’t have even noticed in the first place.
Selling Your Home As-Is
You might own a property that needs tons of work. Your carpets might be soaked in old pet urine or there are noticeable holes in the walls. You have rust in the shower or an electrical system that isn’t fully functioning.
In this kind of situation, there is no way to economically fix things. You can’t just paint over everything. To attract multiple offers, you might consider pricing the house low. In this situation, your target audience will be flippers or contractors.
Do Homebuyers Want To Buy “Fixer-Uppers?”
There are so many homebuyers that talk about buying fixer-uppers, though many of them are truly talking about homes that need a few cosmetic repairs. The idea of fixing up a home might attract many buyers, as most of them are either looking to make a profit by flipping the home or they cannot qualify for more expensive homes.
These types of buyers will naturally provide discounted offers depending on the inconvenience they will face. A new roof may cost $10,000 to fix up. That doesn’t mean buyers will offer $190,000 on a $200,000 home, as they could purchase a $200,000 home with a new roof down the street.
Instead, they’ll offer $150,000 to justify the inconvenience.
Prior To Fixing Up Your Home
The first thing that you must do is weigh the potential home improvement against the market value of your home once the repairs or improvements have been completed. If these repairs or upgrades won’t provide you with a return on investment, then there is no reason to do them.
If you can, take an afternoon and tour a few other homes in your neighborhood. Take note of the amenities and conditions of these similar properties.
While this doesn’t necessarily mean you’ll have to remodel your entire kitchen, you may want to consider adding a new appliance to increase the value.
What Effect Does The Market Have?
If the real estate market is hot, we call it a “seller’s market.” In a seller’s market, you will probably be able to get away with selling your home as-is or performing small repairs where and there. However, in a slow market, many buyers might not even give you the time of day.
Talk with your agent to get an idea of what the market looks like.