Any strategy for selling a home requires a makeover, and in many cases, so does the home.
Selling a house requires a lot more effort than it did a year ago. Former homeowners could anticipate a bidding war the moment they staked a sell sign on their front yard, even if their property was in desperate need of an update.
When Mortgage rates are now pushing up 7%, Real estate agents say that it is difficult for buyers to gather and it is easy to refuse. Making repairs or small cosmetic improvements that buyers care about can make the difference between getting the asking price or offering a discount.
Between mid-July and mid-August, about 95% of home sellers made updates or repairs before listing their properties, up from 71% of sellers six to 12 months ago, according to Realtor.com doing. They spent an average of $14,163.
Not all renovations are worth the cost For sellers, the data suggests. According to a recent report from the National Association of Realtors, the top three interior renovation projects with the highest return on investment are hardwood floor refinishing, new flooring, and insulation upgrades.
Some sellers might think that a minor fix, such as a repaint, could make a bigger impression on a buyer than an expensive change, such as a refurbished third bathroom. .
Judy Dutton, Executive Editor of Realtor.com, said:
Major remodeling projects such as new kitchens and decks aren’t worth the investment given supply and labor shortages and can push sellers’ schedules behind, said Jessica Lautz, NAR’s vice president. Focus on more affordable projects that appeal to buyers and look great in photos, such as refinishing hardwood floors.
The cost recovery rate for repainting hardwood floors is 147%, according to Lautz, which means homeowners are likely to get a much higher return on cost. For comparison, the cost recovery rate for a kitchen upgrade is 67%.
Consider little things that are likely to push buyers away and resolve quickly. Reducing strong odors is a relatively low-cost fix that can help your home sell, says Mark Burns, a realtor in Charleston, South Carolina.
Burns thoroughly cleaned one client’s home before showing it to a potential buyer because the smell of the owner’s dog overwhelmed the house.
The owner paid about $400 for this service. This included cleaning his carpet twice. Burns said the house sold for his $475,000. According to a recent report in his HomeLight, a marketplace that connects home sellers and realtors, a thorough cleaning could increase the sale price of your home by $3,731.
Increased curb appeal can help homes stand out to buyers and reduce concessions for sellers, said Darin Epic, a Los Angeles real estate agent.
Epicch recommended client David Garonczyk to turf the front lawn of his three-bedroom home in Woodland Hills, Calif., as a way to improve a drought-damaged lawn. . Garonczyk considered creating a desert landscape with rocks, but Epic didn’t think the cost of about $10,000 was worth it or would be attractive to a buyer. rice field.
David Garonczyk (2)
Garonczyk hopes the $4,000 improvement will get him land above the home’s asking price of $1 million, but it’s too early to know if the strategy has paid off. is.
Apartment sellers focus on improving aesthetics unless there are obvious defects such as leaking faucets or malfunctioning appliances, said New York City real estate agent Renee Lee.
What repairs or upgrades helped you get the best price for your home? Join the conversation below.
Like a new central air-conditioning system that’s unbroken, expensive to replace, and blatantly invisible, she said, new doors in kitchen cabinets and customizable closet shelves. According to the realtor, they aim to fix whatever the inspection reveals.
Rising material costs are one reason to choose projects carefully. Utilities are another.
Cindy Scholz said one of her clients wasted over $1,000 repainting her garage floor and re-wallpapering the inside of her closet.
“Don’t fixate on unimportant items,” said Scholz, a real estate agent in East Hampton, New York.
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