E-mail :

Password :

Forgot Password? | Sign up for Free

Selling Your Home: Should You Fix It First or Leave It Alone?

Posted by : Premraj | Posted on : Thursday, June 22, 2017

construction
SHARE THIS
FACEBOOK

Real estate is a fickle market that makes some people rich and others cry and remain full of regret. However, the real estate game is unlike throwing dice at the casino. There is more strategy to be applied. For example, if you’re selling an existing home, there are things to do and others to leave alone in order to make a profit. Should you renovate or leave it be?

Research the Market Value

Your home’s market value is a ballpark figure used to project how much it should cost for a new purchaser to own it. You’ll need the help of a real estate agent who can give you an idea of how much you can get for your home as it is. From there, you need to be a lot more methodical, for any money you put in, you’ll want to make back (and then some). Additionally, a real estate agent will help you determine what areas of the home (usually) generate a positive return on investment.

Renovate the Kitchen and Bath

Some circles believe that kitchen and bath renovations bring the best returns. A master bath and a kitchen make a big impression, and updated areas ensure that new owners don’t have to touch them. When renovated well, it also means the previous owner likely made a profit. Of course, the word renovation is subjective. Renovating a kitchen could entail painting cabinet faces or it could be a total overhaul.

Address the Basics

While renovations can be minimal or extensive, an agent will instruct you to address basic needs. Such includes leaky faucets, code violations, and stained carpets. While square footage and the number of bedrooms dictates price, a lot can be said for how a home presents to potential buyers. Assume buyers have options. Unless a buyer is absolutely desperate, they will not have good thoughts about a home with stained carpets, cracks in the ceiling, or dated light fixtures. Such things are easy fixes, and if left untouched, makes an owner, realtor, and home look bad.

Know the Market

Your realtor will provide insight regarding trends and tell you whether it’s currently a buyer’s or seller’s market, a time when one or the other is at an advantage. In a seller’s market, an owner can ‘get away’ with doing fewer renovations and repairs. In a buyer’s market, a seller must understand that they are at a disadvantage and must do more to accommodate potential buyers or settle in allowing a home to sell at a lower price. Others are out there who are interested in buying your house fast.

Renovate to Sell

Some owners make a crucial mistake. They renovate an outdated area of the home, which is a good thing, yet they do it in a way that is close to their taste rather than aligned with the current market and modern trends. So, even if a potential buyer comes in and is interested, they may put in a lower offer due to areas of the home they will need to renovate again. It’s a horrible situation that makes owners feel bitter about renovations. It’s one forewarning to those who want to renovate yet are stubborn in listening to their realtor.

Fund an Upcoming Move

Some people need to make a profitable sale in order to pay for a new home. For example, a couple who plans to sell a condo to move to a home will need all the profit they can get since they’re moving to a more expensive space. Therefore, renovations to the condo, increasing its market value, helps the couple fund the upcoming move.

Tracing History

In addition to market value, tracing the history of sales in the area as well as how quickly homes in the neighborhood recur upfront costs, will help you make a profitable sale. Traditionally, it takes up to seven years for a home to recur the ‘upfront costs.’ This is similar to paying back a loan; at first, one’s addressing the interest before the principle. After a few to several more years, an owner is in an even better position to sell at a profit.

Keep Up with the Jones’

Ironically, an owner may overextend on renovation and make a home harder to sell or more difficult to close at the desired price. For example, large additions or extravagant renovations can alienate a home from those around it, making it much harder to demand an expected price. For example, if you live in a neighborhood full of starter homes and ranchers, and you put a second floor on your home and extend the first floor, you’re displacing some who would normally invest in the area. Similarly, you may attract those who have the money to buy the home but don’t want to live amongst others whose homes are not similar.

Elizabeth Gardiner works as a real estate associate. Always watching the property sales market, she enjoys sharing what she finds on various lifestyle and family blogs.

Comments : Post a Comment | Category : Money Advice, Planning | Tags :
50th Anniver

When we are disabled from an injury or illness, it’s a life-changing event that impacts every aspect of our lives. We are battling the emotional drain from feeling less than human. We are suffering from physical pain and our limitations. Our families struggle alongside us as they assist us in our daily routine. We may [...]

Read More >>

tax-help

The answer to the question, is car insurance tax deductible, isn’t just a straight forward yes or no. It depends on your situation, as a self-employed individual may be able to deduct car insurance, while a non-business owner may not. Here’s a look at a few of the scenarios and whether or not car insurance [...]

Read More >>

50th Anniver

You may be familiar with the different investment options for those who are looking toward their retirement. Our system has several options in place like 401ks and IRAs. These have long been sound investment strategies that have allowed people, even after retirement, to live comfortably without fear of destitution. There are tons of resources out [...]

Read More >>

Break your big budget items to small line items

Bankruptcy is a legal status of a person or entity (such as a business) that cannot repay the debts it owes to creditors. The most common type of bankruptcy is a petition filed by the debtor; from there, the debtor’s assets are measured, and it is determined if some of the assets can be used [...]

Read More >>

Business in Budget

Great ideas can translate into profitable opportunities, provided you do your homework correctly. Budding entrepreneurs are fully aware of the time, effort and expense that must be invested in a new business. It is the latter element which creates tremendous consternation among business owners – where do you get the money to start a new [...]

Read More >>

Financial Solutions

Regardless of how much support they get from their parents and other people early on, there still comes a time in most young adults’ lives when they will be thrown into the world and expected to fend for themselves. Making enough money is already a tough burden to carry from a mental point of view, [...]

Read More >>

Couple at gym

If you’re serious about improving your health and fitness, you’ll need to face a hard fact: it is going to cost you money. Healthy food, a good-quality gym, exercise equipment, and workout gear all cost money, and trying to do it on the cheap can end up costing you in ways that you might not [...]

Read More >>

Payday Loans

There are many reasons for which people decide that its best to hold to their mortgage notes and not cave in to the apparent society pressure of selling it. However, even though there might be a lot to gain by holding on to your note and the reasoning behind this decision might be sound, these [...]

Read More >>

house on calc

When buying a house, most people only think about the asking price to determine if they could afford the house or not. Smarter folks tend to look at how much down payment they’ll need when deciding if they could afford the house. In fact, you’ll be better served if you look at how much you’ll [...]

Read More >>

Financial Solutions

Whether you are running a small business or managing the day to day expenses of your family, without proper personal finance planning, there is always a risk of facing financial crisis. Ignorance or being unprepared with finances can lead to serious trouble. What is Personal Finance Management? Personal finance management is a type of financial [...]

Read More >>

Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video