So you know you are going to sell your home – this may be a long term or a short-term goal, but the same rules apply.
It is still a buyers market, and by all means do not underestimate the buyer. They are smart, savvy and know the right questions to ask. 1st time homebuyers have watched, read and learned over the last 5 years and not as eager to jump into a home buying situation without knowing the facts.
What are the facts?
· How old are the windows
· How old is the furnace
· How old is the water heater
· Is the electrical up to code
· Has the plumbing been updated
Updated – what does this mean? Well it does not mean 15 years ago! Just because it is in working condition, it does not mean it is okay. As buyers will get the home inspected and they will find the answers to these questions even if you do not provide them in the sellers disclosures. If the buyer realizes all of these things will have to be upgraded or replaced in the next 5 years – this will weigh heavily in their decision to buy or not to buy.
The most common loan for a homebuyer is FHA or in Michigan many are using MSHDA – they both have the same guidelines. No peeling paint, mechanics up to code etc.…….. So even if your buyer wanted to still buy the home the lender will not approve it.
Many sellers say, okay I will do these upgrades at point of sale. Not a good decision. If you will do it for the sale, then just do it. It gives the home a negative feeling knowing it has not been done yet. Many people cannot see past the repairs and gives the feeling of an un-cared for home – buyers like to buy a home that was loved and cared for.
Selling a high-end home? The rules above still apply, but you better offer some WOW factor to the home. I have seen homes listed for 350,000 or more and have not been updated in sometime. Jumbo loans are not as easy to get now, and these buyers are not going to pay “full” price for a home that needs updating. (Full price meaning when you comp the neighborhood, square footage, # of beds and bath suggest a certain price) If they estimate 100,000 grand of updates they will want to pay full price less the amount of upgrades needed. I have seen prime location properties sit, due to the amount of upgrades are needed – selling price based on location. Location is still a factor (big factor) but not the only factor in today’s market.
If you are selling a home in Grand Rapids, Michigan for over 500,000 – ask yourself, what WOW factors does your home offer. What makes your home stand out? Okay you have a great view, but what else? Solid 6 panel doors? Energy efficient windows? Granite and tile through out? Updated paint colors? Kitchen cabinets – are they updated or in good shape? When I tour these homes with buyers, we look at these things. You need to stage and update your home to tickle and please all the senses!
Sight- The home has to be staged and pleasing to look at. If the home is vacant – have it staged with furniture. Keep light bulbs replaced if they burn out. Clean finger prints off of everything, clean windows. The front door - is it warn and looks very used, then replace it or fix it.
Smell- more and more people are responding to smells, do not use candles or air freshener. It just makes the buyer think you are covering something up, and they may be allergic. Get that musty smell out of the basement. Clean the home head to toe; the best smell in the world “a clean house”. If you bake cookies before an open house that would be good too!
Hearing- soothing jazz music in the back round would be nice. I showed a home once that had speakers wired through out the home, listening to the light jazz was not only relaxing but highlighted this particular feature.
Touch- Do the kitchen cabinets, door knobs, Light switches, built in’s feel smooth and clean. Buyers are going to touch these item’s they better feel good. Replace them if you need to. I had buyers fall in love with a home till they started opening the kitchen cabinets, years of cooking grease was built up on these cabinets. Nasty feeling – my buyers lost interest.
Taste- Well nobody is going to taste your home, but your taste in paint colors may not be generic enough. If you like bright colors you can have this feature again in your new home. You need to serve the masses, so neutralize your home. Yes, the buyer may change it again when they move in, but it will not feel like they need to do it right away. Paint can also show off architectural features, so do not make everything one color, consult with a Realtor or a home stager to get an idea of the best use of paint before you go for it.
Some of these changes will increase the value of your home, and some will not, but will make your home more desirable to the buyer and make your home stand out from the crowd, and yes there is still a crowd of homes to be sold.
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