I was listening to the radio again this morning and heard a story about how Home Depot's quarterly profits were down 27% from the same period a year ago. While I know that many retailers are experiencing slower sales, (and I have heard that many expect this to be the worst December Holiday selling season in many years) what bothered me most about this story was the commentator's remarks about this being attributable to the slower real estate market and people not wanting to fix-up or repair their homes since prices are eroding and they aren't selling... talk about sending the wrong message and creating a self-fulfilling prophecy!
With market and economic conditions being what they are, I can certainly understand that Do-It-Yourself chains like Home Depot and Lowes may be experiencing slower sales than in a more robust market. However, in a market where homes may be selling more slowly and as sellers look to me for advice in gaining a competitive edge in selling their homes more quickly (and for the maximum price), one of the smartest moves I think they can make is to do whatever they can to enhance the appearance of their property in comparison to their competition and Home Depot and Lowes are both excellent sources for the products and materials that smart sellers need to gain an advantage. Depending on the competition, sellers might consider...
- Slapping a fresh coat of neutral colored paint on the walls (or exterior) of the home (it will make the home feel larger, brighter, cleaner, and will actually eliminate some odors that may exist in the home).
- Investing in new kitchen countertops or appliances. If the current kitchen looks old or drab, a spruce up may require a small investment, but keep in mind that kitchens DO sell houses and if investing a couple of thousand dollars makes your house sell a few months more quickly you will likely make back all or most of what you invest in not having to make several extra mortgage payments and in what will likely be a higher sales price.
- Replacing worn or old carpet or outdated flooring. New carpet is not as expensive as many people think and is an improvement over old worn-out carpet. Even with shampooing, old carpet holds years of odors... new carpet will leave the house smelling fresher and newer. And that 1970's-vintage linoleum which is discolored and cracking definitely needs replacing.
- Light fixtures add more than just light. The right light fixtures add upgraded style. Consider replacing cheap builder's grade fixtures in key areas (such as bathrooms and dining rooms) with nicer and more stylish ones. New light fixtures are not very expensive, can be easily hung by a handyman or a DIYer, and add light, atmosphere and a decorator's flair that can easily lead to higher offers.
- My dad (who has been an agent/broker for nearly 30 years) always says that it doesn't matter how great the inside of your home looks if you can't get the buyers out of the car! Maximizing curb appeal (even for short sales) in this market is a must! Take care of deferred maintenance on the exterior that add curb appeal - fix broken gutters, replace a dented of damaged mailbox, replace dead landscaping and shrubbery... all of these will add to the curb appeal of your home.
Now I understand that not every homeowner has a budget to do all of these things. Sellers should pick and choose the things they think that they can afford and accomplish. If a seller is not sure what is the best use of a limited "sprucing up" budget the best advice I can offer is to ask their Realtor®... they will know what buyers in their market are looking for. Even in a short sale situation, where a seller is dealing with a limited amount of time to sell before their lender forecloses, a small Do-It-Yourself investment could be all that stands between them and the longer-term pain and incovenience of foreclosure!
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