An upgraded/updated home will always sell for a high price but is it the option for you?
We are still in a sellers’ market with very low inventory, so having your home in tip-top condition isn’t as important as it is when we are in a buyers’ market. No matter what condition your home is in you will find a buyer, it’s more a matter of how much you want to sell it for.
With fewer homes on the market, when a buyer comes across a home that has been updated or remodeled and is move in ready, they are willing to pay top dollar.
A lot of buyers don’t want the hassle of having to do the upgrades once they move in, but the biggest benefit for the buyer is they don’t have to come up with a large sum of cash after the close. The cost of the upgrades/remodel is already rolled into the higher purchase and in their monthly mortgage payment.
It’s also hard for buyers to visualize how a home will look once it’s upgraded, or know how much the upgrades will cost, making it harder for them to want to buy a home that needs all that extra work.
I have been working with some sellers recently who have decided to upgrade their home prior to selling. An upgrade can be something as simple as replacing fixtures and hardware, refinishing cabinets, painting and touch ups to doing more of a remodel and replacing cabinets, countertops, flooring, etc.
One of my sellers owned a rental property that was in such bad condition after the renters moved out that the chances were only an investor would purchase it. So instead of selling at a wholesale price, he decided to do the remodel before selling, which cost approximately $36,000.
The difference in the wholesale price selling to an investor and the price of the home once it was remodeled was more than $70,000. So, for him it was well worth his time and effort.
Deciding if you should upgrade or sell your home as is will depend on several factors. Here are some questions to find out if upgrading your home may be right for you:
- How much will the upgrades cost?
- Do you have the cash available to make the upgrades?
- What is your time frame to move and how long will the upgrades take?
- Most importantly, will you get the return on investment. What is the price of your home before and after the upgrades?
- Is it worth your time and effort to do the upgrades versus selling as is?
On the flip side, a buyer may prefer to buy a home that has not been updated so they can purchase it at a lower price and do their own updates over time. So, it’s not whether you will sell your home or not, but if you want to sell for the highest price or sell as quickly and easily as possible.
In order to determine if upgrading your home is a good option for you, you need to find out the current as is price and the price after the upgrades.
The best way to get these values is to contact a local Realtor who can run comparables and let you know how much your home will sell for both ways. It’s important to know which upgrades are worth doing and will give you the return on your investment. Once you know the upgrades you plan to do, the next step is to get bids for the work. A lot of Realtors will have their own contractors they use and will be able to supply you with a list or help you find the right contractor.
YOU WANT TO DO UPGRADES BUT DON’T HAVE THE CASH
You could refinance your home and take out some equity or do a home equity line of credit, but both may take a while and have additional costs involved.
I have just started working with a lender who has a unique renovation program to help sellers update and remodel to increase the value of their home prior to selling. You don’t have to make any payments on the loan, it is taken out of your proceeds at closing. They not only do the loan but provide the contractor and do the project management, so once you decide to move forward, they will take care of everything. Please contact me if you would like more information on this loan.
Even if your home doesn’t need upgrading, there are still things you can do to make your house show at its best. Curb appeal is the first impression a buyer has of your home, so it’s important to make sure the landscape and exterior looks good. Otherwise the buyer may decide they don’t want to go in after they drive by and trust me this does happen and has happened to me before.
Make sure you do a good cleaning prior to listing your home, touch-up paint, declutter and stage your home to sell.
Please fell free to contact me if you would like to know your home value before and after upgrades, or to view your home and let you know what upgrades would be worth doing to sell your home for the top price. You can also contact me directly if you would like more information on the renovation program.
For more information on current market conditions, buying or selling a home, or a free home valuation, please feel free to contact me directly. Call (602) 571-6799, or visit my website at www.Homes2SellAZ.com.