At some point or another, virtually every real estate agent was asked by their customer regarding what home updates they can make prior to listing for the greatest impact. After all, everyone wants to find the most potential out of their home, sell it quickly, and finish the home sale process with no major surprises or headaches. The best way to achieve this is by finishing strategic updates that net the highest return on investment (ROI).
As any long-time realtor may tell you, attempting to close the deal on a house with a leaky roof, even a deceased air conditioner, or a slab leak is extremely hard. All these major problems can instantly endanger any house sale. Outside of very particular conditions, most buyers will shout at closing to a home with thousands of dollars in repairs that are needed. They will likely ask your customer to make the repairs prior to closure, knock the price of the repairs from their listing price, or most likely–determine this is all too much trouble and straight out of the deal altogether.
So, what exactly counts as an”key”? Basically, consider anything which may appear as a significant red flag in the buyer’s home inspection, or that you need to disclose based on local or state laws. Homebuyers and their representatives expect a house to come with minor defects and standard wear-and-tear. In this scenario, have your homeowner local plumber out for repairs. Whatever the price of dealing with the plumbing issue is now, it is well worth it.
If you’re working with a homeowner who is prepping their house for list, inquire about these possible deal breakers ahead of time. While fixing a slab escape or addressing structural damage may not be as sexy as an upgraded kitchen or master toilet, you and your client need to remove as many red flags as you can from the property ahead of listing. In the event the homeowner’s budget only allows for all these vital repairs, then prioritize them more than other updates.
Kitchen Remodels:
Assuming that all the essentials check out, a homeowner seeking to add value to their home should next turn into the kitchen. Kitchen remodels are among the best home projects for lasting return-on-investment: homebuyers, just like us, enjoy remodeled kitchens and dining areas. If your customer invests into their home by remodeling the kitchen, they not only can anticipate their home’s worth to leap, but they’ll also see their home get much more attention when listed.
The first thing prospective buyers will notice are the cabinets and countertops. If your customer is asking for your advice about what to redesign in their kitchen, urge that they proceed with stone countertops and wood cabinets in neutral colors, like white quartz paired using charcoal cabinets. Not only are neutral colors in vogue at this time, but they appeal to the broadest assortment of potential buyers, making them the ideal choice for homeowners looking to optimize their value and curb appeal.
While kitchen remodels are generally high-value projects, make certain it’s a fantastic match for your client’s home. If none of the comp attributes feature a remodeled kitchen, then that’s going to blunt the positive impact of the job and reduce their ROI. If the comps all have kitchens which are far nicer and more extensively renovated than what your client is planning, you should also take that into account. It’s hard to entice buyers to a unicorn: for the most part, you want to spend just enough to remain competitive with comps and other homes in the area.
Energy-efficiency upgrades:
If there’s something that unifies all homeowners, it is their disdain for high electric and gas bills. More and more buyers–especially real estate homebuyers, who now compose a majority of the actual estate marketplace –are considering purchasing homes which have energy-efficiency upgrades already ready to go. This is good news for you and your client: efficiency updates can be a comparatively low-cost way to add value to the property, make it even more attractive to buyers, and also bet out an edge over other properties in your size and price range.
For starters, invite your customer to phone their regional HVAC company out for a whole-home energy audit. This specialized service will supply them with an assessment of where their home is squandering the most energy and what they can do to address this regular energy reduction. A professional energy audit provides the homeowner with a punch list of items they need to finish to get the most-possible yield.
Typically, homeowners can complete a complete suite of energy-efficiency upgrades for under $500. If you’ve got a client who would like to invest back into their home before sale, but is short on upfront money, you may want to recommend they go in this direction.
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