When preparing a home to sell most folks think they’ll have to do more than they actually need to. While there certainly are many items that will make a home more desirable and ensure that it’s ready to sell and be financed, it’s up to you as the seller to determine what’s realistic for your goals. This is why meeting with your listing agent early in the process can be helpful for you to determine the best levels of renovations for your ROI. On average, home renovations only create a 70% ROI so limiting these to what will make a significant difference can greatly increase your profits. If you’re thinking of selling in the next year or just planning some updates, be sure to email me or call me to schedule an appointment. We can go over the current market conditions and decide what you should focus on to increase your ROI. I’ve set a goal of completing 10 listing consultations before June so meeting with you would be a win-win even if your plans to sell are further down the road.
Here are the 3 main categories that are important to look at when determining an accurate selling price:
1. 1st Impression: These are things that affect a buyer’s impression touring a house in person. This category includes such items as:
- Minimizing stored items and furniture to ensure easy access to all rooms
- Cleaning to remove signs of pets
- Removing loud noises/ distractions
- Removing strong odors
- Changing bright colors on the walls
- Removing clutter or strongly personalized art/ features
2. Damage / Unfinished projects: These are larger defects and possible safety hazards that may or may not be visible upfront but could affect financing. In most markets a buyer would want these defects resolved or the cost of repair to be reflected in the sale price of the home. Examples of these would be:
- A roof that’s at the end of its life
- Unsafe electrical panels or wiring
- Plumbing that’s leaking
- Flooring that’s damaged or at the end of its life.
Renovation projects that are unfinished leaving exposed floor supports/ joists/ plumbing can affect financing and will decrease the amount of buyers that are able to offer on a home. Many times sellers are unaware of these issues until a home inspection. However, if any are visible or known issues ahead of time, this will be important to discuss and address prior to listing. These are things that likely will add value if done before listing a house & tend to be the most daunting. If repairs like these are holding you back from selling, I may be able to help you connect with lenders that can help with advance funds or even partner with investors/contractors who would fund these repairs for you for a long enough period of time to make your move.
3. Deferred maintenance: There are small things that you do to maintain your home over the years. This shows visitors that your home has been cared for and includes activities such as:
- Touching up baseboards/doors/window sills and cleaning them regularly
- Replacing light bulbs in matching tones
- Cleaning visible filters/vents/ bathroom fans and resolving any squeaking hinges or leaking fixtures.
- Cleaning gutters
- Clearing out roof moss
- Clearing out downspout
- Securing crawl spaces
- Caulking tubs and sifting regularly.
These things can start to stack up if not maintained regularly and eventually will lead to more costly damage. Currently, we are seeing more of these smaller items passed onto buyers because the market is competitive. However, I believe that to get the highest price, these should be considered and addressed. These are also repairs that most homeowners or a handy person can make for relatively low costs.
If you would like a customized list or market assessment of your house or investment property, be sure to call me and schedule an appointment right away.