![]() ![]() Of course you’re nervous about strangers judging your taste, your style, your home’s cleanliness. No one likes to be judged, which is exactly what prospective buyers are doing. Opening up our homes to strangers for showings can cause anxiety - or embarrassment. Our homes are an intensely personal reflection of ourselves. “Doing certain repairs there will open up a bigger pool of buyers which will create more competition for you.” “I don’t want buyers to see my house like this” ![]() “If you have a pretty good all-around house, but there’s some wood rot or missing floorboards, it could keep you from being able to sell to a VA loan or an FHA loan,” Rentz explains. However, you might want to fix something that opens up your home to different loan types. But keep in mind that the new buyer may have a different to-do list than you do, and focus your efforts on doing only the work that will bring you the best ROI. However, due to budget restrictions and time restraints, most homeowners have a wish list of repairs or upgrades that never got addressed. Below are three warnings to consider when deciding what to fix before selling your home. Remember that your home doesn’t have to be in showroom condition - and that it may not make sense to fix everything. Selling a home can motivate a homeowner to pull out the tattered, old to-do list. Step 3: Identify and rule out vanity fixes Different generations place a higher value on outdoor space than others, so ask your local agent about the pool of buyers in your area. In 2022, 26% of buyers said a desire to have their own yard/outdoor space made them want to buy a home, and 39% of homeowners have plans to renovate their outdoors in the next five years. Recent surveys indicate that today’s buyer places a premium on a well-kept yard and outdoor space. ![]() “An experienced real estate agent can evaluate your home’s value, run the comps ( comparable home sales), and calculate the ROI to see if updating makes financial sense.” To play it safe, follow the rule of thumb not to spend more than 10% of your home’s value on a kitchen remodel or more than 5% on a primary bathroom remodel. “Sometimes a major renovation makes sense and sometimes not,” Bean observes. Lower-cost improvements such as painting and landscaping might provide a bigger bang for your buck and be a safer investment. Generally, however, kitchen upgrades typically provide the highest return - around 50% to 75% - followed by flooring. Will repairs, renovations, or improvements add value and provide a good ROI? It depends on the market where you live. Step 2: Determine if you will recoup your cost That way, you don’t “waste” money on cosmetic changes that may be needed to fix issues discovered by an inspection. Then you’ll know where you need to spend money. In many cases, Bean will advise sellers to wait for the home inspection report and the buyer’s requests. “The first thing I say to my sellers is, ‘Please don’t do anything to your house until I see it.’ That’s because a lot of sellers overspend on fixing and upgrading things that don’t make a difference to the home’s value,” says Carmen Bean, a top-selling agent in San Antonio, Texas, who works with over 72% more single-family homes than the average agent in her market. A great place to start is Homelight’s annual Top Agent Insights, a survey of agent insights into the current market. Rentz points out that bad repairs, or updates that don’t fit the current market, can cost you double, “You spent that money, but someone else is pre-discounting the property to fix that repair or update you did.”īecause they know the neighborhood, as well as what the market is doing, real estate agents can provide sound insight into what work has a good return on investment and what work could be just a waste of time. You want to do just enough to attract buyers, but you don’t want to pour a lot of unnecessary cash into repairs and upgrades that won’t help your home sell for more, or could inadvertently discount its value. They’ll know where you can make money on necessary repairs and upgrades and where to save money by leaving some projects undone.Īim for something between “ as is” and turnkey. Step 1: Consult with a top local agent before you fix anythingĪsk a top local agent what - if anything -should be fixed or upgraded. Find Agent How to decide what not to fix when selling a houseīefore getting to the list, let’s look at three initial steps to help determine how to approach repairs as you make plans to list your home.
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