It makes sense to assume that the better the condition of your house is, the higher price you can sell it. However, it isn’t as simple as that. While a house in mint condition can sell for more money, it is not always wise to invest in improving your house’s condition. If you didn’t play it right, chances are you’d end up spending more money than the actual added value. So aside from asking, “what would make someone want to buy my house?”, also ask will this improvement give an ROI?
The question now is how do you know when and where it is worth making improvements and repairs in your house to attract house buyers. Here are some important things you need to keep in mind when deciding when making improvements:
Consult a Trusted Agent
Before spending money on fixing and upgrading things make sure to ask a trusted local agent who knows whether or not the fix or upgrade will make a difference in your house’s pricing. Experienced agents know the real estate market well enough to know what buyers want to get fixed, what upgrades they are willing to pay more for, and what improvements are just going to be a waste of money. Usually, agents would suggest not to fix minor issues because they can see what the home inspection will bring up and then they can simply negotiate.
Will you Regain the Money you’ll Spend on the Improvements?
In most cases of major renovation, a seller will only get half of the amount spent. However it is important to remember that there are instances that a kitchen upgrade, for example, is necessary to avoid getting a lowball offer. Make sure to have an experienced real estate agent whom you trust evaluate your home’s value and calculate the ROI to see if it is worth updating an area of your house.
Avoid Spending Money on the Following:
- Cosmetic Issues – No need to fix cosmetic flaws because normal wear and tear is expected. The only time you need to address them is when there’s a serious, underlying condition that is causing the issue.
- Cracks in driveways or walkways – While improving your curb appeal can boost your home’s value, you don’t have to fix driveway or walkway cracks unless of course it’s big enough to cause a hazard.
- Minor electrical problems – The mere sound of electrical issues seemed serious enough that it requires immediate attention. While it is indeed a fact that exposed wires, dangling light fixtures, sparkling outlets and other major issues need to be addressed, minor ones can be left alone.
- Grandfathered-in building code problems – It’s natural for building code items to be brought up in inspection reports because building codes change and you can’t expect a house built decades ago to meet the current codes. You are not required to update your house to meet current standards. It is up to the buyer if they want it done.
- Removable items – Items like old window treatments do not need to be replaced with new ones just to make your house look prettier. The principle behind is simply why should you trouble yourself in replacing items when the new owner can just simply replace them with something that they really prefer.
- Partial room upgrades – It just doesn’t make sense to put a new vanity (just cause it looks worn down) while the rest of the bathroom is still looking old. Same goes for other rooms in your house.
- Renovating beyond the norm in your suburb – We often think that standing out in the crowd would guarantee bigger returns. But in reality the rest of the houses will usually make as good an impression on prospective buyers and if you go over the top, the other properties would look worn-down which may discourage the buyers since they may think the neighborhood is worse than it really is.
Don’t Have the Money to Fix or Upgrade, Here’s What you Can Do…
You can actually sell your house as-is. Yes, no repairs, no upgrades, no money and time spent. You are guaranteed you aren’t wasting any money. You don’t even have to think about repairs. You can do so through selling your property to reputable cash house buyers. This is ideal not only for people who want to sell a house as-is but also to those who want to sell their house quickly.