Preparing to sell a home can be daunting. Popular shows like "Fixer Upper," "Flip or Flop," and "Property Brothers" make it sound like you have to spend thousands of dollars and make renovating a full-time job to get your home on the market. while real estatefinsThese people often make money by doing cosmetic renovations and reselling them. These people are professionals who have spent decades buildingYour own skills, knowledge base and networkTo be successful.
The average homeowner preparing to put their home on the market won't see much of aReturn on Capital (ROI)for many of the greatesthome renovationslike kitchen remodel. Even the most popular solutions, like interior and exterior repaints, offer only a 51% ROI, according to analysis by leading real estate agency HomeLight.For neutral-colored homes that are in good condition, repainting is even less cost-effective. Our conventional wisdom about what's worth fixing is often skewed into spending more money and time than necessary.
the central theses
- Before each sale, it must be cleaned, ordered and increased in attractiveness.
- Expensive repairs and renovations should be avoided.
- Think about the return on investment (ROI) before making repairs.
- Keep your home updates consistent with your neighborhood and comparable homes. Don't install Italian marble when everyone else has linoleum.
Consult a real estate agent before making any repairs
No matter what your market, there are some things everyone should dosell fast. You need to make sure that your home is clean, tidy andstagedpartially with mostCurb Appealthat you can deal with
A local, experiencedreal estate agentYou should know the market conditions in your area and have a good idea of what repairs are needed to bring your home into linecomparable salesat your desired price.
Ask your agent about itComparative Market Analysis (CMA)so you can see what other homes are selling for. If everything in your CMA is in similar condition to yours at the desired retail price, you may not need to make any repairs prior to listing. If everything in your CMA is much more current, do an estimate to see the cost and time it would take to bring your home to the selling price you want. Upgrades are often not refunded when sold.
Take your agent's repair tips with caution. get real estate agentcommissions paidbased on the selling price of your home. If multiple upgrades cost you $200,000 and add $100,000 to the selling price, that's a bad investment for you, but a big jump in commission for your business.estate agents. Make sure you areCooperation with an agentthat has your best interests in mind.
Don't make a big reform
While many expensive improvements can increase the overall selling price of the home depending on the project, homeowners can also recoup a large percentage of the higher selling price depending on the project.National Brokers Association (NAR).
In the table below, using estimates from the 2019 Remodeling Impact Survey, the latest year available due to COVID-19, remodelers estimated the costs of specific projects and realtors estimated the costs that were recouped in the home's selling price.
|Return on investment for major renovations|
|renewal type||Estimated cost of the project||estimated cost reimbursed||% of the recovered value|
|kitchen renovation||68.000 $||40.000 $||59%|
|bathroom reform||35.000 $||20.000 $||57%|
|add a bathroom||60.000 $||30.000 $||50%|
|neue Mastersuite||150.000 $||75.000 $||50%|
Don't start a task you can't finish
Home repairs are often more expensive, take longer, and require more skill than most people expect. With supply chain issues and a tight labor market likeConsequence of the coronavirus pandemic, it's harder than ever to finish a home improvement project on time and under budget.
losfederal reserve banktracked manufacturing lead times in New York, Texas and Philadelphia and found a 300% increase from pre-pandemic lead times in some areas.This means not only are you waiting for your devices to arrive from the warehouse at your local store and then waiting for an installer, you are also waiting 300% longer for the materials to get to your device's manufacturer.
That means you shouldn't get into the demolition phase of repairs or upgrades until the items and tools you need to complete your project are physically in your home. It's better to keep the 1970s shaggy carpet than rip it up and reveal the stained floorboards because the 2,000 square feet of hardwood you ordered six months ago have yet to be produced or are on a ship from the Port of The Angels.
Do not fix and replace with trends
Replacing broken or damaged items such as light fixtures, faucets, cabinet hardware, etc. can quickly change the appearance of a home and help it sell quickly or evenprice for more. Repainting a room, door, panel, or closet can also provide a quick facelift. However, make sure you don't substitute anything too gross or trendy.
What is fashionable for a certain part of the population can be extremely uncomfortable for others. Keep your group of potential buyers as broad as possible by choosing neutral colors and common accessory styles that can appeal to everyone.
Should I sell my house for cash?
Selling your home for cash is more convenient, but you're usually accepting an offer from a buyer who will take some of itrepair costsand then offer 75% of what they want to sell the house for. The cleaning, tidying, and repairing that you have the time and money to do while putting your home on the market will likely make you more money than selling it for cash.
What is the minimum I need to fix?
If you can, you should fix anything that is a major security issue causing your home to fail inspection. Major leaks, vermin, drainage problems, or electrical hazards must be fixed before you put your home on the market unless you intend to sell it for cash.
Should I stage my house?
Yes, staging a home can make your home sell faster and for more. However, staging does not necessarily mean hiring a professional staging service provider.cleaning and disassemblyThey are part of the staging and need to be completed for move-in anyway, so get this done before the listing photos are taken to have the most positive impact on your sale.
The final result
You may not need to fix anything to get your house on the market. The most important thing is to make sure that you clean your home, declutter and increase the attractiveness of your home. Speak to a real estate agent to get an idea of what is needed in your current market. Do some basic repair cost calculations. During the current supply chain crisis, make sure you don't start anything you can't finish before your offering goes live, and when making updates right before the sale, do things with neutral flavors rather than your own.
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Federal association of real estate agents. "Survey on the impact of the conversion.“
The White House. "Why the pandemic disrupted supply chains.“
Federal Reserve Bank of St. Louis economic data from FRED. "Chart of current delivery time distribution index.“