Many home sellers ask if they should do the necessary home remodeling or sell as a fixer upper
With more than 25 years in the industry, I get asked all the time about home remodeling. Is it better to fix up your house before selling or sell it as a fixer-upper? While there is no hard and fast answer, I tell my clients to consider numerous factors. One of the most important is the condition of your home. Another is the strength of the market in your area. And finally, I tell my home sellers to consider the potential profit to be made both with and without updates.
Here are some things to think about:
Who buys fixer-uppers?
The words “fixer upper” might actually be a selling point for some buyers. It will attract buyers who are looking for a deal, those who want a property they can put their stamp on, or those who just can’t afford to buy something turnkey. Then there are the flippers who are searching for a home that needs work. Experts say if your home needs kitchen or bath remodels, a new roof, or foundation repairs, then there’s more than an 80% chance your buyer is going to be an investor. Make sure your real estate professional has those contacts. To find the right representation, check out my previous blog: What You Really Need to Know to Find a Real Estate Agent.
The value of an honest assessment
Your real estate agent should be able to give you an honest assessment of your home’s value in its current condition. Listen to what they have to say. Realtor’s like me have the knowledge it takes to make recommendations on what will make your home market-ready. Keep in mind, your agent has the same goal as you: to get your home sold at the best possible price.
Be realistic on pricing
Fixing your home may make the most sense due to the financial upside. Your real estate agent should be able to show you market comparables, so you can evaluate other properties in your area in varying conditions. This important intel will give you an idea of how much you’d have to spend to get top dollar for your home.
Understanding what’s popular among home buyers today can help home sellers make educated decisions when it comes to remodeling. I look at a variety of updates to consider in my recent blog: Return on Investment, Can Adding a Pizza Oven Be Worthwhile?
Make necessary repairs
There are some basic repairs that should be addressed before you list. It might not be glamorous, but buyers are looking at big-ticket items like the age and condition of the roof, air conditioning, and heating systems, water heater, electrical panel and pipes. I tell my clients to seriously consider replacing any of these components that are on their last leg.
Once you list your home, get ready to receive offers based on its condition. If you are considering listing your home in Montecito, Hope Ranch or any of Santa Barbara’s upscale communities and are wondering about home remodeling before selling, please call me at 805.886.9378 or email me at Cristal(at)montecito-estate(dotted)com. I’ll give you my honest assessment and happily add your listing to my portfolio of fine homes in the area.