Increase Home Sale Profits
By Kristi Vaughan
Looking to increase the potential for financial gain when you sell your home? Start by viewing your home through the eyes of a buyer.
Does that faded floral wallpaper you've grown used to make the front hall look drab? Does the overflow in the closet shrink the perception of space? And how about those weeds in the garden?
First impressions do count
Ask nearly any real estate agent for a list of cost effective changes and some variation of "make a good first impression" will be near the top of the list. And indeed, two identical houses for sale in the same neighborhood can sell for entirely different prices simply because of presentation and appearance. So where do you start?
Curb appeal. This is a favorite term of real estate agents. This is the emotional reaction that occurs when a prospective buyer drives by a house or approaches the front door. To check your house's curb appeal, go outside and take an objective look. Is the paint on the window trim peeling? Are the shutters all nailed on securely? Is the walkway missing any bricks? Are there overgrown shrubs? Is the backyard swing set rusted and falling apart?
Keeping in mind that most buyers don't want to pay top dollar for fixer-uppers and, conversely, you, as a seller, don't want to spend money you won't recoup, make a list of all those outdoor items you can attend to without spending a great deal of money.
Now walk inside. Again, look as if you're seeing your house for the first time? What do you notice?
Front entrance. Although for all practical purposes you may rarely enter your house though the front door, do so now since this is the entrance through which a real estate agent will bring prospective buyers. As you did outside, take a look through the eyes of a buyer. What do you see - a warm welcoming house or drab carpet?
Pad and pencil in hand
Now that you are thinking like a buyer, take your pad and pencil in hand and walk through your entire house, Make a list of good points and a list of easily correctible deficiencies.
According to the National Association of Realtors®, some of the most common correctible impediments to selling a house are:
- Clutter
- Bad odors
- Lack of curb appeal
- Inadequate repairs
On the plus side, according to NAR, the following can help make your house more saleable:
- A well-maintained landscape
- Good lighting
- Pleasant smells from potpourri, fresh flowers, baked goods, etc.
- New towels in the bathroom
- Fresh logs in the fireplace
- Neutral colors
- Clean floors and windows
- Clutter free surfaces
How much to spend
Well-maintained houses that have great curb appeal and make buyers feel like they could be happy there tend to sell more easily and at higher prices than similar houses in disrepair. But that doesn't mean the sky is the limit in terms of spending to get your house ready for sale. By knowing the local market, your real estate agent can help you determine the areas most likely to "pay for themselves" through a better sales price or reduced time on the market.
Generally, cosmetic and mechanical repairs will be beneficial while major capital improvements such as remodeling kitchens and bathrooms are better left to the new homeowner. Costly repair items such as a new roof or fresh exterior paint should be discussed with your real estate agent. Keep in mind that structural repairs that affect the integrity of the house, such as a new roof, may be part of your purchase agreement with the buyer.