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Preparing Your Home for Sale: Make Needed Repairs
Before a buyer considers your home seriously, it must meet his
needs in a variety of ways. It must be a suitable commuting
distance, neighborhood, design style, floorplan, size, number of
bedrooms, etc. If all or most of these needs are met, the buyer
will begin to move in the direction of making a purchase
decision. The purchase decision is a both an emotional and
intellectual response, founded on a level of trust in your home.
So, it is logical that in marketing your home your goal should
be to enable the buyer to build trust in your home as quickly as
possible. One way to do this is to address both surface and
hidden repair issues before putting your home on the market. A
few small clues, such as torn carpet or leaky faucet, will
create a feeling that your house is not well cared for. Once the
buyer has spotted a few defects, he will be on the lookout for
more. If the finishes in your home are in good condition, buyers
will assume that the mechanical and structural systems are well
maintained also.
Make a Complete List
Remember that potential buyers and their real estate agents do
not have the warm personal memories and familiarity that you
have with your home. They will view it with a critical and
discerning eye. Anticipate their concerns before they ever see
your home. You may look at the leaky faucet and think of a $10
part at Home Depot. The buyer thinks of a $100 plumbing bill.
Begin by walking through each room and considering how buyers
are going to feel about what they see. Make a complete list of
needed repairs. Hire a handyman, if you need one, to fix the
items in a few days. It will be more efficient to have them all
done at once. Some clients choose to market their houses as a
fixer-uppers. Of course, there are handy buyers out there who
are not afraid of repairs, but they expect to profit from this,
substantially above the cost of labor and materials. When a
house needs obvious repairs, buyers always assume there are more
problems than meet the eye. It is in your best interest to get
minor repairs fixed before marketing your home. Your house will
bring a higher price and sell faster.
Get an Inspection
Often sellers have their home inspected by a professional
inspector before putting it on the market. This is an excellent
way to discover unknown repair issues that may come up later on
the buyer's inspection report. By getting this done early, you
will be able to address the items on your own time, without the
involvement of a prospective buyer. There will almost certainly
be some items that you choose to not repair. For example,
building code requirements change over the years. As a result,
you may not meet code for certain items, such as handrail
height, spacing between balusters, stair dimensions, single
glazed windows, and other items. You may elect to leave items
such as these as they are, and that is OK. You should note on
the inspection report which items you have repaired, and which
are being left as is, and attach it to your Seller's Disclosure.
It is a good idea to also attach repair receipts to the report
if you have used a contractor for some of the items. A
professional inspection report answers buyers questions early,
creates a higher level of trust in your home and reduces
re-negotiations after contract.
Offer a Service Contract
The home service contract (also called home warranty) covers the
cost of certain repairs to mechanical, plumbing and electrical
systems and appliances during the buyer's first year of
ownership. The cost of the policy is about $350, but may be more
if a pool or other items are added. The fee is paid to a third
party warranty company, who provides repair services for the
buyers during their first year of ownership. These policies help
to reduce the number of disputes about the condition of the
property after the sale. They protect the interests of both
buyer and seller.
Should You Remodel?
Often clients ask us if they should remodel their house for
sale. I believe the answer to this is no - major improvements do
not make sense when selling a home. Studies show that remodeling
projects do not return 100% of their cost in the sales price.
For the average home, it does not pay
to move walls, tear out
cabinets, re-do kitchens and bathrooms, or add rooms, in order
to sell. There is a fine line between remodeling and making
repairs. You will need to draw this line. Here are some
decisions you may need to consider:
Countertops are outdated or wrong color:
It may be worth it to replace the countertops if other
components of the house are acceptable. An attractive countertop
can transform the kitchen, and the kitchen has a significant
impact on the value of your home.
Carpet is worn, outdated or wrong color:
This improvement is almost always worth doing. Sometimes sellers
ask us if they should give an allowance for carpet, and let the
buyer choose. Do not worry about whether the buyer will like
your selection. Just choose a neutral shade, and make the
change. New carpet makes everything else look better.
Walls need complete or touch up paint:
This is a must do! Clean walls are crucial to a winning
presentation of your home. This includes baseboards and trim. On
the walls you should use neutral colors, such as cream, sage
green, beige/yellow, gray/blue. Stark white, primary colors and
dark colors do not contribute as much market value, and may be a
negative factor.
Texture on walls is poorly done, or there is heavy "popcorn"
texture on the ceiling:
A clean, simple texture under paint can improve the presentation
of your home. On the other hand, if there is much updating
needed in other areas, it does not make sense to target this
item.
Wallpaper is outdated or torn:
This may need to be removed and the walls painted. However, if
the home needs a good deal of additional updating, then
wallpaper should be left as is. Bathroom caulking or grout is
dirty: Put this on the must do list. Old or darkened caulking is
a turn-off to buyers. It is easily replaced.
There are drainage problems, or leaks in the plumbing or roof:
This is a must fix! Be careful that you correct the source of
the problem, use professional help to check for mold, and fully
disclose the repair. Make sure your contractor gives a warranty
that can be passed on to the buyer, but avoid giving a personal
guarantee of the repair.
There are sheetrock holes, missing trim, torn vinyl, broken
windows, rotten wood or malfunctioning equipment:
These are all repair issues that should be addressed. Homes sell
for more that show a reasonable level of maintenance.
Shrubs are overgrown and flower beds are bare or weedy:
This is one of the most cost effective changes you can make. Mow
and edge the lawn. Add inexpensive mulch to flower beds. Add a
new doormat and pots of blooming plants to the porch. Cut back
overgrown shrubs or remove them altogether. Large, woody shrubs
can be a detraction to your home, especially if they cover
windows.
Gutters need cleaning and trees rub against the roof:
These are items that comes up frequently on buyers' inspection
reports. Make sure your tree limbs do not touch the roof.
Heat/AC, Plumbing and Electrical systems:
All of these systems need routine maintenance. It would be a
good idea to have the heat/AC system serviced and filters
changed. Check for plumbing leaks, toilets that rock, corroded
valves on the hot water heater and other plumbing problems.
Replace burned out bulbs and electrical fixtures that do not
work. Check your sprinkler system and pool equipment for little
problems.
Make Needed Repairs
As you prepare your home for sale, your first step should be to
make needed repairs. By making repairs you will answer buyers
questions early, build trust in your home more quickly, and
proceed through the closing process with fewer surprises. Your
home will appeal to more buyers, sell faster and bring a higher
price.
About the author:
Roselind Hejl, CRS, is a Realtor with Coldwell Banker United in
Austin, Texas. Her website: Austin Texas Real Estate
Guide offers homes for sale, search MLS, buyer and seller
guides. "Let Roselind help you make your move to Austin." Top 25
Residential Agents - Austin Business Journal
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