Should I Upgrade my Home before Selling it?
If you are a fan of home renovation shows, you are well aware that certain features in a home will help you sell it faster and for a higher price. An updated kitchen or main bedroom suite, excellent curb appeal, and contemporary home decor are all pluses for buyers. These features add to the home value and benefit the new homeowner since they will not have to spend money on any upgrades you have already made - a win-win situation. Here comes the caveat, though. Only a few projects will pay for themselves when selling. According to the Remodeling Impact Report published by the National Association of Realtors in 2022, only these five upgrades will recoup their costs or make you more money: 1) Hardwood Flooring Refinish- 147% 2) New Wood Flooring- 118% 3) Insulation Upgrade- 100% 4) New Roof- 100% 5) New Garage Door- 100% Next in line are upgrades that will recoup more than 80% of the cost: 6) Basement conversion to Living Area- 86% 7) Closet Renovation- 83% 8) Fiber Cement Siding- 86% 9) Vinyl Siding- 83% You might be surprised that kitchen or bathroom remodels are missing. The truth is that these are the most expensive renovations you can tackle, and their projected return on investment is only between 60 and 70%. Our advice is to consider carefully which features of your home you want to improve before selling it. Remodeled kitchens, bathrooms, main suites, etc., will all undoubtedly add to your home's value. In most cases, though, the money and time you spend on these projects will not result in a higher return on investment.
How to Prepare your Home for Selling
Sometimes it seems like in our Northern Virginia market any house sells. We live in a remarkably competitive housing market due to unique local dynamics involving government, military, and enterprise. If you dig a little deeper, though, you will discover that at any given moment, many houses sit on the market far longer than necessary with the listing eventually expiring. The below graphic illustrates this fact for the year 2023 in Fairfax County. (source Bright MLS) As a seller, it might be difficult to accept that your home becomes less and less attractive to potential buyers the longer it sits on the market. The truth is though, that after a while buyers start to think that there is something wrong with your house and won't even consider it. Luckily, this scenario can be avoided by preparing your listing the right way. Here are some basic but proven strategies to sell your home quickly and for a great price: 1) Declutter and clean your home. With soaring house prices it is more important than ever that your home looks like the price tag you want to put on it. If necessary hire a professional to help you sort through things and a service to deep clean every room. It will be well worth your time and money. 2) Paint the walls in a neutral color. Not everyone shares your enthusiasm for that purple dining room or the psychedelic wallpaper in the hall bathroom. If you want to attract as many potential buyers as possible, it is best to stay within a neutral color scheme. 3) Make necessary repairs and upgrades ahead of time. 4) Remedy strong odors in the house. 5) Take extra care of the exterior of your home and the yard. Trimmed bushes, weed-free flower beds, and fresh mulch are a must. 6) Set the price right from the beginning. Starting high and lowering later is a strategy that always backfires. Talk to a professional and let them help you determine the true value of your home. Click here if you are interested in a free consultation and home evaluation. If you want to take it a step further and maximize the equity in your home read the second part of this post - How to make your house stand out from the crowd.
Categories
Recent Posts
