5 Steps That Add Value!

Question: “As sellers, is it better to focus on updating one big focal point like the kitchen, or do smaller updates in several areas of the house?” -- Lisa in Chelmsford.

 

You want to sell, but how do you know what changes will add the most in value?

 

Your house may not need the work you think it does. When we look at our own home, we see it in two ways: (1) This space is perfect because it’s mine! Or (2) I really want to change something… But what you want to change may not need to be changed in order to get the most value for your home.

 

We covered some of this in my blog, "The Five Stages".

 

When you are shopping for a home, you make two lists: What do I want to change? And what do I have to change?

 

The "Want To" list is always a personal stamp that you want to put on your home, such as your favorite paint colors, rug versus hardwood flooring, updated kitchen features and new appliances, to name a few things. These items should not be included in the offer price. These options are more a matter of taste, and not necessary for you to move in.

 

The 'Have To" list is the list that equates to real money. Are your rugs dirty? Was your kitchen last updated in 1973? Is the paint on the walls peeling? What does the outside look like? Is the electrical and plumbing up to date? These are things that need to be done in order to make the house livable.

 

While no one can predict what will make a buyer fall in love with your home, there is one universal truth: When a buyer looks at your home, "Must Changes" are always followed by a dollar sign.

 

First Step: Make a list--

--Did you half-paint the bathroom?

--Is there paint peeling?

--Are the floors in good condition?

--How up-to-date is your kitchen?

--How old are the roof, electrical and heating/cooling systems?

--Did you have a leak? Is old water damage still showing?

--Are the front steps up to code?

--Is the yard maintained?

 

Doing a major rehab of your home may not be necessary. Remember: For all major changes, you will need permits.

 

Step 2: Walk Through--

Now that you have your list, go through the house as a buyer and mark down what makes you lower your offer price. The number one deterrant is paint. It seems silly because most people will repaint the walls anyway, but if the current paint job was poorly done or is peeling, it becomes a "Must Change". Simply re-painting will help tremendously.

 

Step 3: Don’t Do Work Till You Have Spoken To An Expert--

Have your agent walk through with unbiased eyes. They will be able to review your list and let you know what changes will yield the most bang for your buck.

 

Here are some other things to consider…

 

Are you planning on buying a new home at the same time as the sale of your home? What is most important to you: Selling fast, or getting the most money for your home? How much money do you need to spend on repairs?

 

Step 4: Go To An Open House Or Two--

As you walk around the properties, make note of the things that you believe are contributing to the asking price of the house.

 

Step 5: Put Things In Perspective--

Trust your gut and your agent!

Call today for your free market analysis!