In the real estate world, there are differing opinions on how far a seller should take the upgrades before selling their home. In home staging we also have to consider a number of factors when offering professional advice to a client.
So, it is very important to consider these upgrades for a number of reasons.
Number one
Consider if your competitors have done upgrades. Have they been regularly maintaining their property over the years? Buyers are viewing those homes against yours. Buyers will buy a more upgraded home, especially if you are trying to get the same price.
“Market value” is what a buyer is willing to pay you for your property, not what you think it’s worth.
Number two
It does not make financial sense for a buyer to give you a high asking price when they have to invest thousands in upgrades. If they see a house already upgraded, most buyers will choose that one. Just like you probably would. Their reasons are usually the same, they can’t afford to do upgrades. This is because they are already maxed out for the purchase price.
Number three
Buyers often do not have skills to tackle these items themselves. They are not looking to buy anyone else’s headaches.
Dated homes sit for sale
If you chose to keep your property dated and wait longer on the market for a sale, you will encounter a number of stressors. Things like extended carrying costs, double property payments and double utilities. Plus double taxes if you already bought a house, more stress, going stale on the market, price reductions…etc.
There is one thing you can do to try to sell faster. If you are not doing upgrades, start off with a lower price than your competitors. That way you hit the market with enough impact to get noticed and get showings. You may get lucky and find a buyer that is willing to take your “project house” on.
If this is the road you want to go, then it is sometimes not enough to be $5,000 under your competition.
You will need to consider the level of upgrades that would be required and drop your starting price to that point. This may mean $10,000- $30,000 or more depending on how extensive the work is.
Investors tend to want to get a “deal” for 60%- 75% of the listing price, so that there is equity already built into the property and they can safely tackle the upgrades without losing money. It just numbers for them. But for you, it’s your equity you are giving away.
Reconsider this and do the upgrades that will put you front and center on the real estate map, and then keep your equity!
Return on Investment ROI Study
This one was done in 2011 by Home Gain
- Clean and De-Clutter = 586% ROI
- Lighten and Brighten = 313% ROI
- Staging = 299% ROI
- Landscaping = 258% ROI
- Electrical/Plumbing Repair = 181% ROI
- Replace /Shampoo Carpet = 169% ROI
- Paint Interior Walls = 80-110% ROI
- Paint Exterior Walls =51% ROI
- Repair Damaged Flooring = 107% ROI
- Update kitchens and baths = 172% ROI
You can see that all updates offer a return on investment, some more than others. The stats are clear that the majority of Real Estate Agents make these recommendations and their advice should be heeded, as they are in the business of selling real estate and they are usually well versed in the ups and downs of selling.
As an Agent, I provide a very clear picture of what buyers want, so lets get your house “saleable” by doing as much as you can to compete with the market.
Real estate has changed dramatically in the last 15 years thanks to all the Home Staging Television shows. Buyers want what they see on TV and they are willing to pay for it.
If you are thinking of selling, I offer a 15 min strategy call on zoom to discuss your specific needs for selling and explain how the staging process works when I list a home. I also offer a flat fee commission for you, that will easily free up money if you want to tackle any projects!
Jill Turgeon
Stage and Sell Real Estate & Save Money
One Percent Realty 780-218-7444