To the homebuyer or the homeowner, saleability matters!
What makes a house sell?
Whether you are a homeowner thinking about selling or a homebuyer in the market for anew home, saleability matters! You want to make sure you are taking care of and getting the most from your real estate investment. This month we are exploring the keys to making your home more appealing to the buyer, AND how to add value to your real estate investment. There are many ways to do both – from home improvements to “fixing up” before your home goes on the market, to pricing and location – they all factor in to your home having “saleability”.
What makes a house sell?
A successful sale requires that you concentrate on six considerations:
- the listing price
- the terms of sale
- the condition of your house
- location of the house
- accessibility, and
- Marketing exposure your house receives.
While some of these factors are beyond your control (such as the list price the market demands), you can compensate by taking advantage of other items, like a new paint job or landscaping the front yard, to make your property as attractive to prospective buyers as possible.
What about home improvements?
Renovating your home for sale may or may not be a wise move depending on how much you plan to spend. In some cases, a home is in bad shape and the money must be spent to make it salable. On the other hand, spending too much may represent a loss. It is important to discuss with your real estate agent how much home improvement upgrades needs to be done. A new toilet, sink, and shower stall in your bathroom, a new paint job for the first level floor, and new kitchen sink fixtures might create the best overall value for the least investment. Your agent can tell you after an evaluation what aspects of your home are a liability and which problems will actually kill the sale. An experienced agent will know what they need to fix to make the sale. Other issues can be negotiated.
Statistically, there is only one improvement that a homeowner can make which will actually produce a profit when the home sells. We call it “Paint & Petunias”. Yes, it’s curb appeal. Research available from the Real Estate Center at Texas A&M University tells us that paint touch up and minor landscaping will actually return 109% of its cost. It is interesting to note that research shows yellow flowers are the most appealing to prospective homebuyers.
The same Real Estate Center report says that other fix-ups and updates return less than their actual cost. A kitchen refurbishment will return about 78% of cost on average, and a bathroom update recoups about 67% of the cost for a Seller. In addition, the lowest recapture of investment is the good ol’ swimming pool. It will return about 15 to 20% of the installation cost.
The obvious question is: “If I’m going to take a loss on the improvements, why do them anyway?” Think of it this way: your house might not be competitive and won’t sell at all without the updates. The partial “loss” on a component upgrade will actually make the overall product, your home, sell more quickly and for more money.
“Staging” is the latest buzzword in real estate, but it simply means to present your home in its best and most appealing light. If you are preparing your home to sell, it is to setup your home to appeal to prospective buyers and showcase the property in a way that makes buyers eager to purchase! In theory, “staging” isn’t hard or costly, but in reality, many homeowners find it difficult because it’s often hard to see something objectively when we love it.
Professionally staged homes sell in 80% less time than non-staged homes, according to a survey conducted by ASP* (Accredited Staging Professional). The money spent on staging will always be less than your first price reduction and statistics also show that 94.6% of staged homes sell on average in 35 days or less.
The following is HomeGain.com’s national survey, based on the ten areas of home improvement identified by real estate agents in HomeGain’s survey. They are listed from the highest to lowest returns on investment:
|Clean and de-Clutter||$100 – 200||$1,500 – 2,000||872%|
|Stage Home for Sale||$300 – 400||$1,500 – 2,000||586%|
|Lighten and brighten||$200 – 300||$1,000 – 1,500||572%|
|Landscape Front/back||$300 – 400||$1,500 – 2,000||473%|
|Repair Plumbing||$300 – 400||$1,000 – 1,500||327%|
|Update Electrical||$300 – 400||$1,000 – 1,500||309%|
|Replace/Clean Carpets||$400 – 500||$1,000 – 1,500||295%|
|Paint Interior Walls||$500 – 750||$1,500 – 2,000||250%|
|Repair Damaged Floor||$500 – 750||$1,500 – 2,000||250%|
|Update Kitchen||$1000-1500||$2,000 – 3,000||237%|
|Paint Outside||$750 – 1000||$1,500 – 2,000||201%|
|Update Bathroom||$750 – 1000||$1,000 – 1,500||172%|
If you are thinking about selling your home, contact Norma and her team today to get more information about the options available to you.