SELLER'S RESOURCE »
One of, if not the most common question we get asked by homeowners thinking about selling their home is, “What should we do to our home before we sell?” Even though the answer to this question really does depend on the current market conditions, the answer has been the same for the past several years and for the current foreseeable future. If you’re reading this, you must be asking the same question. The quick answer: as little as possible.
The truth is, right now the market is so competitive, and there are so few homes for sale that the sales price difference between a home that is clean but outdated and a similar fully remodeled home is almost always less than what it would cost to remodel the home. This means, if you were to remodel your home before selling, you’d most certainly net less money than if you just sold it as-is. However, this does not mean you won’t have to invest some money in your home to maximize your sales price and ultimately the amount you net at the closing table.
When a TK Homes’ agent tours your home, we will be looking for items that we recommend you fix and/or upgrade. These are going to be the items that a homebuyer is likely going to expect or require to be in good working order when purchasing any house. By taking care of these items prior to going on the market, you’re able to adjust the price accordingly. If you have to fix these items during the inspection period after a price is already set, you will have no opportunity to adjust the price. The big items that fit into this category are your roof, HVAC system, electrical and plumbing. Addressing these bigger ticket items up front also allows buyers to be more confident when making an offer, causing them to potentially pay more for your home.
There are some other areas that we’d recommend you invest some money in as well, which are more cosmetic in nature. These would include:
• Yard cleanup » this does not mean laying new sod or adding flower beds, simply ensuring what grass or landscaping is present is as clean and presentable as it can be.
• Paint touchup (as needed) » a general rule of thumb is if your paint looks fresh, then it will not need to be fully repainted even if the color is not a common neutral color. If you do decide to repaint, make sure you’re using light and neutral colors like whites and grays.
• Flooring » this one is a little more challenging as it usually does not make sense to replace flooring in the entire house. However, if you have one or two rooms that are showing their age, it’s usually a good idea to freshen those rooms up. Making sure you pick a very neutral color is key here.
• Countertops » these fall into the same category as flooring. It often does not make sense to invest in new countertops, unless your current countertops are damaged and not matching the cabinets or the rest of the home. It makes no sense to upgrade countertops when your cabinets are also showing age, as most buyers will want to replace the cabinets. This makes your investment on the countertops essentially worthless.
One other major area a TK Homes’ agent will help you with before selling a home is staging, which usually does not cost a homeowner a single penny but can result in a quicker or higher sales price. Often times, staging can be as simple as removing décor and/or furniture to open a space up to help a buyer get a better idea of the home and room.
You can see that there is not a clear answer to this commonly asked question that fits every home. That is why it is super important to talk with a TK Homes’ agent BEFORE spending any money on upgrades or repairs to your home to get it ready for sale.
Thinking of selling? Contact TK Homes today and let’s talk about how to maximize your net proceeds from the sale of your Denver area home.
~ Written by CEO/REALTOR® Trevor Kohlhepp