Home improvements & repairs
Understanding the condition of your home and the current state of the housing market is vital to making informed decisions about your property. Let’s take a moment to evaluate both now. By doing so, you’ll be equipped with the knowledge you need to make smart choices about your investment.
Before you put your home on the market learn which home improvements can boost the value of your home and improve the odds of a quick sale, and which may turn out to be a waste of time.
Factors to consider
-
Take into account the current state of the Real Estate Market.
-
Bear in mind that some buyers will not be interested in purchasing a fixer-upper.
-
It’s important to identify repairs that will offer a high rate of return such as wood flooring.
-
Repair broken or worn-out items like windows and light fixtures. It’s a must for functionality and aesthetics.
Kitchen remodels
Certain home improvements and repairs are more profitable than others.
For instance, a minor kitchen remodel can increase your property’s value by over $18,000, and replacing the garage door can boost resale value by more than $3,000.
Note
Talk to a REnext agent before making repairs to weigh the pros and cons of your particular home and personal situation.
Selling as is
There are times when it may be more practical to sell a house as is. This essentially means that the seller won’t make any repairs to the property before the sale or offer any credits to the buyer for improvements after the sale.
For instance, let’s assume that the property in question requires a significant amount of work. There may be holes in the walls, the floors and carpets are soaked in pet urine. Maybe the electrical system is not functioning correctly either, and so on and so forth.
This is not a home that can be easily or affordably repaired. A fresh coat of paint won’t improve the situation. In this scenario, the best course of action would be to set a low price for the property to attract multiple offers from contractors and investors.
Note
Most fixer-upper buyers are willing to do simple repairs such as painting the walls, putting in new carpeting, or replacing light fixtures. However, most are not interested in rebuilding a foundation or moving walls.
Fixer-upper buyers
If you’re looking to sell a fixer-upper home, it’s important to understand the psychology of fixer-upper buyers. Most will expect a discount on the price to account for any repairs that are needed, as well as the inconvenience of making those repairs. However, they are unlikely to offer the full price for a home with repair needs.
For example, if your home could be worth $100,000 with a new roof, which may cost around $10,000, a buyer will most likely not offer $90,000 for the home. They could easily find an identical home with a new roof for $100,000 and save themselves the hassle. Instead, they may offer only around $75,000 or even less.
If you want to get the best value for your home, it may be worth considering paying for the necessary repairs, such as a new roof, and then selling the home for $100,000. This way, you can avoid the hassle of having to negotiate a lower price and attract more buyers who may be wary of the cost and effort required to make repairs themselves.
Keep in mind that many buyers will steer clear of homes that need significant repairs, such as a new roof. They may be concerned about unexpected costs, such as repairs to the sheathing and rafters. By investing in the necessary repairs, you can attract more buyers and increase the overall value of your home.
Note
Limiting the number of buyers who might be attracted to your home by not making repairs can be avoided by ensuring that your home is in move-in condition, which is what most buyers look for.
Getting your home ready to show
When preparing your home for sale, it’s important to take a constructive approach and make a list of any areas that need attention. By identifying any defects, broken items, or worn-out features, you can address these issues before putting your home on the market.
To appeal to buyers, aim to make your home move-in ready. This may include making repairs and updates, such as patching walls and ceilings, fixing broken appliances, and repairing leaky faucets. Consider replacing outdated fixtures, ceiling fans, and broken window glass. Updating old window coverings and drapes can also refresh the look of your home.
If your home is empty, staging it with modern furniture can help potential buyers envision themselves living there. By taking a constructive approach and making these improvements, you can showcase your home in the best possible light and appeal to a wider range of potential buyers. Ultimately, this can lead to a quicker and more profitable sale.
