What repairs should be made to home before selling?
Wow, I have chosen a tough topic for my article, but a very important one that does address the question “what repairs should be made to home before selling?
Let us start with the assumption, all home owners that are considering selling want to maximize their profits. How is this done? Well it is done in several ways and those are things that need to be considered as well. For example, in your opinion is the sale price the only indicator of how much money you will make? I hope the answer was a resounding no! Truth is a higher offer may not net you a better deal, and in the end how much money you net (money in pocket) is REALLY what counts!
Generally speaking when giving home values to home owners in the South Phoenix and Laveen area I will use recent home sales and even current competition to help determine value. This article is really not meant to go into what is done to help determine value, but more so what repairs to be done to help value. The values given will provide a low, high and of course an average/median price range. Where in that range one falls really depends on condition of the home. That is the purpose of this article, to help you the home owner/seller understand what potentially you could do to maximize your sales price or profit.
First things first, you must have a full understanding of what is going on in the local real estate market. This goes beyond what a home’s value is, it is knowing the market trends. Does the market benefit the buyer or seller? If it benefits one or the other, how much does it benefit them? As an example for most of us realtors, the 3 month inventory range is the middle point between the buyer and seller market. It could be called a transitional market or balanced. If inventory or turnover is below 3 months, then it is a seller market. If the inventory or turnover is more than 3 months, it is more of a buyer market. The further away from that 3 month point, the more it benefits one of the groups. So the luxury home market for example has 17 months of inventory at this point in the Phoenix area, and this REALLY benefits buyers. Buyers have a large inventory to choose from and as such can be picky, often get a home under asking price, and choose the best home at the best price. Make sense? On the other side, if there is say under 2 months inventory, then homes are selling more quickly and seller has upper hand. Wow, if there were under 1 month’s inventory, you’d maybe see multiple offers and home selling in hours or days.
Second thing you need to know is what repairs to make to maximize your sales price. This could very well be specific to different areas of town, but here in the South Phoenix and Laveen real estate market I can say that generally you want to make repairs that will help the home show better. Notice that I did not say make improvements. Improvements may help get you more money, but will you get a dollar for dollar return on your investment. This does have to be looked at on a case by case basis. I can say in general, just make sure that repairs done to the home are for those that will make home look better. As examples, I would recommend painting a home but not putting in a new kitchen. I would recommend a professional cleaning to make sure it shows well, but I would not recommend adding granite counters. In short, really make cosmetic repairs to home that are not costly, will make the home look better and show at its best and that will likely get you a higher sale price.
I have worked with many home sellers in the Laveen and South Phoenix area, as I’m an area realtor and specialist. There have been appointments I’ve gone to and listings I have taken where the seller was recommended to do NOTHING in preparation for the home going on market. See, some home owners have done an excellent job of maintaining the home and making improvements. Again, depending on condition the home value will fall within a range, and if home owners are happy with that range, then nothing needs to be done!
I’ve also gone on appointments and taken listings that I have made recommendations to the home owners for repairs to be made. In those situations the home owner would be able to make a small investment in making some repairs, minor improvements to the home, in order to get a better offer on their home. Again, most repairs I have suggested will depend on the kind of market we are currently in and if the home owner will get a dollar for dollar or better return on their repair. I have been an active south phoenix and laveen realtor since 2004, and as such I know what can make a difference in the sales price.
Hope this article has helped you a bit in deciding which repairs should be made before selling your South Phoenix or Laveen home. While there are always variables to consider, a good rule of thumb is to make repairs with how the home looks. Now, I also assume that if you have broken plumbing, leaky toilet, electrical that does not work and such, that you would get those fixed anyway as you are living in the house, right? You don’t live in the dark or walk through puddle to get to your room right?
If you have any questions on selling your home, and helping maximize your sales price here in the area of South Phoenix and Laveen give me a call. I am after all in the business, and I would like to earn yours.