Making Repairs to Increase Your Home Selling Price
If you are planning to sell your house, you want to do everything you can to get maximum value out of it. For the best home selling price, there are several important steps you need to take. Some of these will include making repairs, cleaning and decluttering, staging and hiring a real estate agent. These are the processes you should go through if you are looking to sell your house in a “traditional” real estate transaction for the most possible resale value.
Of course, a higher resale value doesn’t always translate to higher profit. You will, of course, want to consider all your home selling options before you make your move. Your personal situation may dictate a faster move, or a cash sale to an investor may make the most sense depending on a variety of factors. However, if you are going to take the time to get your house sold for top dollar on the open market, making repairs can definitely increase your home’s value in the eyes of buyers.
Here are some repair tips to consider:
Make a List
If you’ve been living in your house for awhile, you probably already know what work needs to be done. Maybe there are damaged walls, loose doorknobs, leaking pipes, cracks in the foundation, etc. Whether it’s a minor repair or major repair, you should start by making a list of everything you know needs to get done.
Consider a Pre-Inspection
Many of today’s homeowners are opting to get home pre-inspections before they even list their houses for sale. This can help you be more prepared and know what buyers and home inspectors will ultimately be looking for. It can avoid complications and selling delays during the closing process and make your home more appealing to buyers, thus leading to better offers and a smoother overall transaction.
Take Care of at Least the Minor Stuff
As you make your list of repairs, you have to prioritize based on time, budget and realistic expectations. The little stuff is usually easy to fix up and you might be able to take care of a lot of the work yourself. Talk with a contractor or handyman about things that are outside of your comfort zone. Get price estimates and then…
Weigh the Pros and Cons
For the more expensive repair jobs, you will want to carefully weigh the pros and cons of each project. Try to gauge much will it cost you now versus how much it will benefit you during the home sale. If a major repair is going to cost you a thousand dollars upfront, will it boost your resale price by at least $1,000? Will it impact your sale at all? Will not fixing it hinder your ability to sell the house or force you to take a much lower offer than you want to? Many home repairs and upgrades will pay for themselves when the sale closes for a higher amount. Some won’t, and you may be better off just holding off on the repair and disclosing it when you put up the listing.
Disclose What You Know
Speaking of disclosures, don’t try to hide issues with the house when you list it or during the final negotiations with potential buyers. The truth will come out eventually, usually during the official home inspection. Or, the buyer will find out after they move in and there could be all sorts of legal issues coming your way. It’s best to be upfront about any problems you know about. That way there are no costly surprises for anyone later.
Set Your Price Accordingly
Just because you spent a lot of money on repairs doesn’t mean you can jack up the selling price way beyond what the market is willing to bear. You still have to price it right if you want to sell in a timely manner. Again, you have to compare the upfront costs of making repairs against how it will affect the resale value. Make smart repair and final home pricing decisions based on careful research and planning.
These are just a few tips to consider when planning your home sale and thinking about what repairs you should or shouldn’t make before you list the property on the market.
If you don’t have time or money to make necessary repairs (especially if your house is a real fixer-upper and you are in a tough financial position or are crunched for time), then you will want to explore other home selling options. You may have a better result working with a cash buyer or a real estate investor who can offer you different financing options. These deals can close much quicker and investors are usually interested in buying houses in as-is condition. They are often looking for fixer-uppers like yours that they can renovate and resell or rent out. Your home selling price may not be as high in these transactions, but it may benefit you in other ways. In some cases, you may even come out further ahead by the time you factor in all the time and costs associated with a traditional home sale.
To further explore all of your home selling options, contact PropertyLark today. We can make you a fair cash offer or connect you with a trustworthy real estate agent to help you through a traditional sale. We have many different ways to help you sell or lease, so we will help you figure out what’s best for you and your family.