So you’re selling your home, and it doesn’t look like the TV-show ideal. In fact, it’s far from perfect. In a tight market, your first thought may be to go all-out making improvements in the hope of commanding top price. According to realtor Susan Roemer, there could be other options for you to consider. With more than 20 years in the business, she knows what you should – and shouldn’t – do to attract a buyer and avoid spending far more than you’ll recover.
It’s important to understand the difference between maintenance and upgrades, and which ones affect the seller’s asking price and the buyer’s offer. Maintenance items are essentials that, over time, depreciate and wear out. Replacing a worn-out roof is maintenance. Upgrades make things look current and stylish, creating an inviting environment – for example, new countertops, enhanced lighting, or elaborate landscaping.
When you consider spending money on upgrades to attract buyers, keep in mind that they may not care how much money you spent on the upgrades, but will care if a new roof is needed, when making an offer.
Conversely, your house isn’t worth $15,000 more just because you spent $15,000 putting on a new roof. However, a buyer may want to reduce your asking price if a new roof is needed.
Once you’re a homeowner, you become the steward of your investment, making a commitment to look after it and maintain it.
Just as you would maintain your good health with exercise and personal care, you should maintain and care for your home. Every home should be free of safety concerns and needs a good roof, a well-maintained furnace or source of heat, and functioning water and septic systems. Besides providing shelter, it will help you get a better return on your initial investment, Roemer said.
While most homes have some “blemishes,” some homes have serious imperfections because of neglected maintenance. When a property is being purchased with a mortgage, the lender and inspector will be looking for “Red Flag” items.
The most common big-ticket items that some buyers – and their inspectors – could flag as “red flag” items are:
■Roof needs replacing
■Outdated electrical panel
■Old/poorly functioning water heater
■Repairs needed to pipes, sewer connection, or septic system
■Outdated HVAC system
The challenge with selling not-so-perfect homes is that some lenders require these items to be corrected.
If possible, you should consider addressing these big-ticket items before putting your house on the market. For many buyers, most of their available cash may be needed for their down payment, putting a home that requires immediate work out of their reach.
By taking care of needed improvements, you may be able to ask a higher price for the home, avoid post-inspection price reductions, and attract a broader group of buyers.
Roemer can walk you through that red flag list and establish the proper way to maneuver through these challenges.
Even if the buyer needs to bring a neglected house up to standard, or wants to make substantial upgrades or even add rooms, there are financing options. An experienced realtor like Roemer can work with local banks to determine which type of financing – conventional, FHA, VA and 203K mortgage financing, to name a few – best fits the specific home and buyer’s qualifications.
Selling your home “as-is” indicates that no repairs will be made. What the buyer sees is what the buyer gets, although the buyer, to be fully informed, may still request an inspection. When you sell a house this way, you may have to anticipate a lower sale price than if you had completed some updates and maintenance before listing.
Another option for selling “as-is” is to have a pre-inspection and disclose everything found on the inspection report. After the prelisting inspection, Roemer said, we can reevaluate and discuss the best marketing position for your property, and determine the most realistic price for a reasonable turn-around.
Minor improvements that don’t cost a lot of money can reposition your home for a better price than selling “as-is,” and can be tackled on weekends before putting your house on the market.
■Apply fresh coat of paint, always in a neutral color
■Caulk bathrooms and kitchens
■Improve lighting by adding fixtures or replacing bulbs
■Have the carpets professionally cleaned
It’s crucial to have a discussion with Roemer to determine reasonable costs for these projects.
No matter where your house is positioned on the market, Susan always focuses on the positives. Even if your house needs some improvements, things like the location, lot size, and floor plan can be big selling points that should not be overlooked.
Price your home appropriately or you could lose valuable market time. Susan Roemer can help you determine the most realistic price for a reasonable turn-around.
In the 20 years that Roemer has been in the business, she has worked through many challenges that have led to successful closings with all parties satisfied.