Dian Hymer’s column addresses a very common question, what to fix before selling your home.
I get calls on this all the time.
Here is one common scenario. The home seller always wanted the home to have __________ but never got around to doing it. Now they want to do it just before selling.
If it’s to remodel the kitchen and bath, add a bedroom or anything big, it won’t likely pay for itself unless you really know what you are doing. If you are thinking of asking me this question then you really don’t know how to make the right improvements at the right price and you shouldn’t do it. If you have fixed and flipped homes successfully in the past then you know what to do even if this isn’t really a flip.
Sellers often put money into homes right before they sell that will never pay for itself. Occasionally you’ll see “improvements” that are so bad that they actually hurt the value of the homes.
Fix Up or Credit?
My philosophy is that credits hurt you. Instead of offering a credit for new carpeting you should either 1) put in new carpeting (much preferred), or 2) simply lower the price of the home.
Don’t play games with credits. They make they home look more expensive then it really is. Just lower the price.
What are the best improvements to make before selling?
Here, I defer to the great one, Bob Bruss.
These are your best cosmetic fix-ups to make before selling.
- Fresh paint (by far, the most profitable improvement of all)
- New landscaping
- New light fixtures
- New carpets or floor refinishing
- General cleaning and repair
- Kitchen cabinets and appliances
Staging is also a great investment if the home is occupied.
{ 2 comments… read them below or add one }
Philip Rosenberg 01.30.08 at 10:38 am
John,
I know you are aware Bob Bruss passed away several months ago. I subscribed to his newsletter and for years he gave practical no-nonsense advice including what you have written above.
My experience with listers is that by the time they call me in they have already “fixed up” their homes. I remember one lister who had three different floorings in his house, white and black marble tile in the living room, faux wood in the kitchen and family room and red carpet in the master (YIKES!). I lost the listing after 6 months but I learned the ever important lesson that I don’t have to take every listing offered. And I don’t any longer.
I follow Russell Shaw’s algorithm that if it isn’t priced right it isn’t going to sell. Do what you can to put forth a reasonable case to the prospective lister, but if the do not listen, WALK. Who need the headaches?
I have a tendency to swim upstream, and have bucked the trend of focusing exclusively on listings. At the moment I have four buyer I’m juggling and am as busy as ever. Thank goodness.
John, your websites and blogs follow in Bob Bruss’s footsteps in that they give practical and timely information to both clients and realtors.
I actually refer your Zip Code Sales site to clients. Haven’t lost a client yet, and they appreciate it!
Thank you for your contributions to the industry.
Best regards and keep up the great work!
Philip
John Wake - Real Estate 01.30.08 at 11:55 am
That’s hilarious! I think the rule of thumb is a *maximum* 3 different kinds of flooring in a home, even a luxury home.
Hey, I loved Bob Bruss. It’s sad. Since Bob is gone, I probably wont’ renew my license to use Inman articles like Dian Hymer’s above.
That’s neat that you refer your clients! I don’t want to take anyone’s clients so that’s great.
My websites and newsletters are very soft sell, anyway, probably too soft.