Wondering whether you should update your home or sell it as-is? Take five minutes and read this article (or watch the video below) where I walk you through the key areas to consider.
To answer this often posed question you should begin by first asking yourself a few questions:
1) Ask who you think the likely buyer of your house is?
By determining the likely buyer of your home you will have a better idea of what state your home should be in in order to net the most positive income from the sale of your home. Homeowners should analyze the location, condition, and topography of their home to determine whether the buyer will likely live in the house or just utilize the land.
By determining the likely buyer of your home you will learn who to market your home to and therefore, what state your home should be in in order to sell quickly and for top dollar.
2) What to do once you determine you should update your home (the likely buyer will live in your home)?
If you decide the likely buyer wants your property for the house (as opposed to someone just buying for the land), then updates would likely maximize your positive income. To determine what updates should be done initially, homeowners should evaluate the neighborhood “competition” and compare it to their own home. Considering the recent sale price and condition of homes near yours provides you with a standard to meet or even exceed prior to listing your home. For example, if most homes in your area have updated kitchens or bathrooms that would be something to consider renovating.
Also, worth noting is the necessary extent of renovations. Updating your home does not mean a complete overhaul is necessary; a simple replacement of countertops, appliances, or light fixtures to modernize a space can easily and cost-effectively increase its value.
3) What updates should you prioritize in order to appeal to the current market?
Generally, buyers in our marketplace prioritize the kitchen/family room area and the master bedroom, as far as updates go. The number of bedrooms and the layout of the house are areas of importance, but buyers tend to look more at the common room and the master bedroom primarily so, should you choose to update, make sure you address these areas.
4) Maybe your home doesn’t need updates or it wouldn’t be cost-effective to update, what do you do?
There are a few simple, affordable things anyone can do to prepare your home for the market. The first and perhaps most important thing would be curb appeal. Anything you can do to spruce up the yard or appearance of your home can make a world of a difference. Also, inside the house, painting rooms so they are more uniform is very doable and effective.
Another simple thing I always tell clients pre-listing is to clear up the spaces inside your home so that your home looks as spacious and full of storage as possible. That could involve putting things in storage but it is a great way to quickly and easily increase the appeal of your home.
5) What to do if you decide to sell your home as-is?
If you determine selling your home as-is works best for you, there are some big benefits to doing so. Primarily, it is a much simpler transaction; you don’t have to spend time or money renovating your home which often requires extensive coordinating and sometimes even moving out of your home to complete the updates. You could simply list your house on the market, and what many of my clients do today is get a free rent back so that the home is sold and ready to go but you can take your time moving out.
If the buyer is a builder, then another benefit is there would be minimal or often zero contingencies ensuring the smoothness of the sale. So, yes, the price has to reflect an as-is sale but it’s a great route to go, especially in the current market, because people are willing to buy regardless of the condition of the home making the entire selling process much easier for you.
Most people, if they’re trying to decide whether to update or sell your home as-is, the first question asked is how do I maximize my profit? Updating often increases the value of your home so, if you have the time and means to update, that could be a great way to maximize your home’s value.
On the other hand, selling as-is is attractive due to the simplicity of the transaction and lack of risk. Sometimes when you update you don’t end up netting any more than if you had just sold as-is so the time and effort spent could potentially be for naught. However, if you update you will definitely appeal to a bigger marketplace, so if it makes sense to put money into your house to improve it and increase its value it would likely be most beneficial.
What’s the next step?
The next step is deciding whether you are going to update your home or sell as-is, and the best way to do that is to have a professional, someone who does this a daily basis to come and take a look at your house and walk you through the pros and cons of both. So give me a call to set up a cost and commitment-free consultation.
I hope you found this helpful! To get more of “Tom’s Tips” follow me on Facebook, Instagram, LinkedIn, or Youtube. Have a great day!