Here are some things to consider before improving your home for sale.
I was recently asked by a homeowner if they should fix up their home before selling or sell it as a fixer-upper. If you’re considering either of these options, I have some tips to share today to help make your decision easier:
1. Consider your audience. If your home just needs simple cosmetic updates, sometimes marketing a home as a fixer-upper brings all kinds of value to a buyer who is looking to put their personal stamp on a home but doesn’t have the budget to buy a turnkey home.
If your home does need a lot of work, your audience may very well be investors. Many individuals and organizations are willing to pay cash for your home in its current condition. Many times, that’s not going to bring you the most money. Sometimes, however, that’s exactly what you need.
2. Get an opinion from a trusted real estate advisor. It’s important to have someone you trust weigh in on what your home is worth in its current condition and what you can do to its value through upgrades and improvements.
If you do list a home in fixer-upper condition, you need to be realistic on price. You would think that since a buyer would pay a premium price for a premium home, all you need to do is discount the upgrades from that price and get your list price. However, buyers are going to factor in those aggravation costs. They may think something is going to cost two or three times what it really will and their offer will reflect that.
3. You can make minor modifications. Don’t splurge on a $20,000 kitchen remodel, but maybe a few thousand in paint for the walls and trim. You’re still probably going to want to make necessary repairs. When investors look at homes, they’ll factor in those costs. Buyers looking for a fixer-upper are certainly open to making cosmetic changes, but the big-ticket items are a different story.
I hope this information has been helpful to you. If you have any questions about your situation or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.