Now that the sun has dipped low and cold temperatures have firmly planted themselves in our midst, it is time to start thinking about getting that house ready to sell come Spring. In fact, if you are thinking of selling your home, you might consider getting it ready for sale and out on the market as soon as possible.
The housing market is still alive and kicking, and no one is more surprised than I am. A typical winter is usually slow with most activity focusing on closing sales from the fall. Not so this year! Listings are up…way up… and while sales are not keeping pace with the sunshine months, houses are selling every week. I am not sure why this has happened, it might have something to do with the rumors of next year’s boom, the reality of winter pushing some to commit to permanent shelter, the continuing influx of new families or the stabilizing interest rates. What ever forces are at work, one thing is for certain, houses are still selling.
This leads me to the purpose of this article, which improvements help sell a house and which ones have a low return for your investment. After many years of showing and selling homes, I have seen many a first impression cement or kill a sale. Quality finish work is the key. Pulling up to a house with missing paint, trim or other partially finished areas sets a tone of “low quality” (whether deserved or not) that few interiors can overcome. The most important thing in preparing a house for sale is completing quality finish work, both inside and out. While painting outside is not possible during winter, get the window trim, rain gutters, railings and other exterior components up and ready for paint in the spring. Then, move inside and finish the interior components that so many of us leave on our “To Do” list, like plumbing, electrical, sheetrock, moldings, outlet covers, paint, flooring and light fixtures. A bulb hanging from wires just doesn’t say “buy me”!
My sellers often ask about offering a flooring or paint allowance to a buyer. These allowances are paid at closing and provide the buyer a specific amount of money from the seller to replace old carpet, linoleum or paint. The rationale is that an allowance gives the buyer the opportunity to pick out what they like. While this makes sense, few buyers are willing see past the worn out room they are standing in to the new and fresh room awaiting them after closing. Other buyers simply don’t want the hassle of doing improvements or waiting for them, they just want to move in and enjoy their new home the day it records. Therefore, my advice is to replace the flooring (laminate wood is a great choice) and paint the walls prior to placing the house on the market. Make sure to pick out a neutral color or pattern. A perfect segue to my next point in preparing a house for sale.
Avoid home fashion trends. They are just like clothes and fall out of style almost as fast. The “Chai Spice” orange ceiling in my kitchen just doesn’t look quite right two years later. When updating your house for sale, don’t use the “in for the moment” wild paint colors, ornate wall stencils or flooring colors and patterns that limit how a room can be decorated. The idea here is to give a potential buyer a fairly plain canvas on which they can mentally paint their furniture and furnishings. There are buyers who walk away from an otherwise perfect house because it didn’t match their decorating style. I certainly point out a home’s potential during a showing, but it doesn’t always get a buyer past what their eye sees. And that includes clutter! Get as much of the clutter out of the house as possible. Stacks of magazines, a plethora of knick-knacks, a packed bathroom counter, crowded furniture, walls of family pictures and stuffed closets all work against the sale. A house shows best when it has a minimal amount of personal items and furnishings visible to the buyer.
Finally, when I show a house to a couple or family, I always keep my eye on the wife/mother. Women are often the key player in deciding which house to buy and they are primarily interested in the kitchen and bathrooms. These are the two most important rooms in a house. After completing quality finish work, remodeling an outdated bathroom or kitchen is the next best investment you can make in a selling your house. In my experience, a mid-range remodel on a kitchen or bathroom has a 100% or more return on the investment. It increases the value of the home and helps it to sell faster and closer to the asking price. A mid-range remodel for a bathroom includes floor and wall tiles, a jetted oversized tub, a stone or ceramic counter/sink and modern fixtures. Kitchen improvements should include energy efficient appliances, tile or wood flooring, new or refaced cabinets with attractive pulls, a double sink with a quality faucet and updated lighting fixtures. Unless you are adept at home remodeling, utilizing a contractor for such improvements is a good idea, as they have the tools, skills and practice for quality results. A remodel that isn’t finished well can actually be a negative. Avoid high end remodels, which are not cost effective, and low level remodels that do not elevate the room to “got to have” potential.
Other improvements to avoid are adding the extra family room, a deck or a garage. On average, they return only about 50% of your investment. While a garage is important to some buyers, building a garage later on is often an acceptable option. A typical contractor built 2 car garage costs between $40,000 to $60,000, but only adds about $25,000 in value to your home. An extra family room is rarely a selling point and a deck is usually something the buyer will do as a weekend project on their own.
The bottom line to preparing your home for sale is to complete those unfinished eye sores, replace and repaint the old and worn out and empty the house out as mush as possible. Moderate upgrades on kitchens and bathrooms will certainly help, but getting what you already have finished and in great shape is the best thing you can do this winter to get your house sold fast and at an acceptable price once it hits the market. |
