If you are thinking of selling your home, this is probably a question you have been asking yourself and your realtor. There is not any hard and fast answer; the path you go will depend on numerous factors, the most important of which are: the condition of your house, the potency of the market in your area, and the possible gain to be made with and without upgrades. These tips can help you decide whether to sell now or later.
Consider your buyer
The words”fixer upper” might actually be a selling point for some buyers who perceive they are getting a deal, who are especially looking for something they can put their postage, or who simply can not afford to purchase something turnkey. The marketing your agent does is key here so you don’t end up with nothing but unacceptable offers.
“In almost any marketing communications enclosing a fixer-upper, it’s important to remain focused on value,” stated ExtraSpace. “Prospective homebuyers are aware that a fixer-upper will market at a lower price point than more contemporary houses on the market. But that does not mean that you have to accept a lowball offer. Rather, highlight the home’s investment possible by reminding buyers of the future sale opportunities after the house was remodeled.”
If your home requires A LOT of work and also you can’t, or don’t want to, put the time, money, and effort into getting it in prime condition, targeting investors could get it sold quickly. “A couple of decades past, a previous customer called to say her next-door neighbors necessary to immediately sell their property. “The home appeared inhabitable. It had holes in the walls all the way to the outside and urine-soaked wood flooring; many of the electric did not work and the bathroom tub had dropped through the joists. Each of the faucets leaked and, in one bedroom, I found a pile of dead rats swept into a pile in the center of the ground. This was not a home that could be readily fixed up. Not even a coat of paint would have helped sell this location. We priced it low enough that it attracted multiple offers and sold with zero days on market.
Since flipping is much more popular than ever, a house that needs work – especially certain kinds of work – may be attractive enough to investors which you don’t have to do any job in any way. “A fantastic rule of thumb: If your home needs toilet or bath remodels, a new roof, or base repairs, there’s an 80%-plus chance your purchaser will be an investor,” Bruce Ailion, a broker and REALTOR® in Atlanta, said on Realtor.com.
Obtain an honest assessment – and be able to hear it
If you’ve lived in your home for quite a while and/or have not kept up with upgrades and fixes, your real estate broker’s assessment of its condition and the recommendations he or she makes to get it market-ready might be eye-opening. They might also make you mad. Try to listen to and keep an open mind, even in the event that you are feeling offended. In the long run, you share the same goal, which is to get your home sold for the best possible price.
Be sensible on pricing
“Finding out your home’s value is not as straightforward as subtracting the cost of repairs from your home. In addition, you have to factor in’annoyance expenses,’ said Ailion. “Quite simply, turnkey homes often sell at a premium to traditional buyers because they do not have to do some work. If your home requires some sprucing up, you’re likely going to get to incentivize buyers to dig in and get their hands dirty.”
It can be that fixing your home up makes the most sense because of the financial upside. In presenting you with comparables, your real estate agent should be able to show you other properties in your area in varying conditions (depending on the amount of active listings or recently sold homes around you). This will help advise the pricing for your house and give you some idea of how much you’d have to put into it to get high dollar.
Choose your updates wisely
A 30,000 kitchen renovation may not be in the budget and may not give you the return on investment you’re looking for, but there are smaller updates you can do to your own kitchen to make it appear fresh (and, you can use the same principles in other important places, like bathrooms). Better Homes and Gardens includes a great collection of upgrades you can make for under $2,000, including hanging a ring which”illuminates the sink region” and swapping out a tired sink for a”farmhouse sink (this ) adds personality to the space.” Also think about painting cabinets and installing new hardware, also, if you’re up to the task, including an eye catching backsplash.
Make necessary repairs
Investors aren’t expecting perfection, and their supplies will be dependent upon the state of your house and the potential profit they can make after it’s fixed up. Non-investor types searching for a deal may not necessarily be scared off by some cosmetic problems, but significant repairs which are required are yet another story. If you’re looking for the smartest place to set your pre-sale renovation dollars, this may be it.