Should you update to sell?
Listing a home for sale can be exciting, and it can produce a heavy dose of anxiety. When a property is showing its age (no judgement here…I am too), the question of whether or not to update prior to selling can add an extra layer of stress, but it doesn’t have to. Read on for things to consider before making any decisions, and in the end, do what works for you, use available resources (Windermere Ready, I’m looking at you), and understand that no amount of work will reduce the importance of pricing the home well.
property condition and architectural significance
Take a hard look at the current condition of the home. Minor updates like new flooring, interior paint, new counters, and updating fixtures will improve any space. Look at each room with fresh eyes. If you walked in as a buyer, what would you think? Would you pay your asking price for a home in this condition, or would a few adjustments make it more appleaing.
While you’re absorbing all that, think about the architectural significance and design of the home. If you’re living in a mid century that has received clashing renovations over the years, can you lean into the mid century design to increase appeal and add value? If you have an original Craftsman on your hands, would refinishing all of the incredible woodwork breathe new life into the home? If you choose to do any work, stay true to the home’s design for the best results.
market conditions
In a strong sellers market, with properties selling quickly and at high prices, a major renovation may not be necessary. However, if the market favors buyers, seems well balanced between sellers and buyers, or you’re in an area where most homes have been updated, some well planned updates could be the key to making your home stand out and encouraging offer.
return on investment
Weigh the potential return on investment. Certain updates, such as flooring, paint, kitchens, and baths have a higher ROI than others. ROI can be based on the area, so get a local pro to help you determine what options would be best for you. (PNW peeps, air conditioning and outdoor living spaces are clutch)
your budget & resources
If updates or renovations offer a good ROI, fit within your timeline, and make sense, do you have the budget to cover them? Is your cash best used to cover costs or to invest elsewhere? Should you pay upfront for them or leverage resources like the Windermere Ready program to have costs covered out of proceeds at closing? Understanding your options and resources and knowing which ones work best or your unique situation will make your life easier.
wrapping it all up
Look at the big picture by considering the current market, your goals and priorities, the honest condition of your home, your timeline, ROI coupled with your budget, and the options available to you. No matter the objective in selling your home, it’s good compare estimated net proceeds with and without updates, costs to update, options available, and return on investment before settling on your plan of action.
It’s important to note that home prices and interest rates are up quite a bit. Buyers’ budgets are stretched. They may not have the funds to do improve the house after closing, so they’re prioritizing homes that are move-in ready.
Have questions? I’m here for you.