Selling a home is a decision that leads to lots of other choices that will affect the final price a buyer will pay.
One of the most fundamental is whether to invest in improvements to maximize the value of your home, or sell it in its current state and take the best offer that comes along.
Each strategy will likely reflect your personal circumstances and mindset. Most owners want to get as much money for their property as possible because it’s their most significant financial asset.
A minority feel they don’t have the time, motivation or cash to spend on improving a home they’ll no longer live in.
If you’re considering selling your home in the near future, perhaps you’re struggling with this quandary.
As an experienced agency, we believe every owner should decide their strategy based on their financial circumstances and motivation.
The decision has consequences, of course. Not least of them is the fact that selling a home “as-is” will likely reduce your financial capacity for your next purchase.
Here are some issues you might wish to consider:
Agent advice – Consult with a real estate agent to get advice on the improvements that will make a difference to the final sale price. We’d be delighted to assist. We can advise you on where your investment will have the most impact. You wouldn’t be the first seller to spend thousands of dollars on improvements that made zero impact on buyers.
Target market – What type of buyer will your property attract? If you have a large land size, and you believe developers would be interested, then renovating may be a waste of money. Essentially, you’ll be selling a “tear-down” and capitalizing on the land value.
Family home – Most families want a home they can move into straight away. They don’t want the hassle of making major improvements after a purchase. If this is your target market, then enhancing key features should be money well invested.
Turn-offs – Old kitchens and aging bathrooms will turn most buyers away. However, you need to be convinced you can get your money back if you’re going to spend $30,000 or more improving them. The inconvenience of living with contractors as they remodel should not be discounted. In this situation, maybe it would be best to take a hit on the price and let the next owners worry about a remodel.
General condition – Minor cosmetic flaws, such as worn carpet and outdated light fixtures, are easily fixed but can drag down the value of offers if they are not addressed. However, that’s not always true. If you’re living in a “hot” market, prospective buyers are so keen to live in the neighbourhood they’ll ignore these small issues.
Quicker listing – By deciding to sell your home “as-is”, you’ll be able to list your home earlier. And while you may not get the best price, you’ll more likely get your money sooner.
Wider appeal – A home that needs some TLC often appeals to more folks. That’s because many are looking at the cheapest ways of breaking into the market or upsizing. That said, you’re going to get a lot of lowball offers, and you’ll probably not maximize the value of your asset.