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Roselind Hejl
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© Copyright 2006, IRED.com, Inc.
Before a buyer considers your home seriously, it must meet his needs in a
variety of ways. It must be a suitable commuting distance, neighborhood,
design style, floorplan, size, number of bedrooms, etc. If all or most of
these needs are met, the buyer will begin to move in the direction of making
a purchase decision. The purchase decision is a both an emotional and
intellectual response, founded on a level of trust in your home. So, it is
logical that in marketing your home your goal should be to enable the buyer
to build trust in your home as quickly as possible. One way to do this is to
address both surface and hidden repair issues before putting your home on
the market. A few small clues, such as torn carpet or leaky faucet, will
create a feeling that your house is not well cared for. Once the buyer has
spotted a few defects, he will be on the lookout for more. If the finishes
in your home are in good condition, buyers will assume that the mechanical
and structural systems are well maintained also.
Make a Complete List
Remember that potential buyers and their real estate agents do not have the
warm personal memories and familiarity that you have with your home. They
will view it with a critical and discerning eye. Anticipate their concerns
before they ever see your home. You may look at the leaky faucet and think
of a $10 part at Home Depot. The buyer thinks of a $100 plumbing bill. Begin
by walking through each room and considering how buyers are going to feel
about what they see. Make a complete list of needed repairs. Hire a
handyman, if you need one, to fix the items in a few days. It will be more
efficient to have them all done at once. Some clients choose to market their
houses as a fixer-uppers. Of course, there are handy buyers out there who
are not afraid of repairs, but they expect to profit from this,
substantially above the cost of labor and materials. When a house needs
obvious repairs, buyers always assume there are more problems than meet the
eye. It is in your best interest to get minor repairs fixed before marketing
your home. Your house will bring a higher price and sell faster.
Get an Inspection
Often sellers have their home inspected by a professional inspector before
putting it on the market. This is an excellent way to discover unknown
repair issues that may come up later on the buyer's inspection report. By
getting this done early, you will be able to address the items on your own
time, without the involvement of a prospective buyer. There will almost
certainly be some items that you choose to not repair. For example, building
code requirements change over the years. As a result, you may not meet code
for certain items, such as handrail height, spacing between balusters, stair
dimensions, single glazed windows, and other items. You may elect to leave
items such as these as they are, and that is OK. You should note on the
inspection report which items you have repaired, and which are being left as
is, and attach it to your Seller's Disclosure. It is a good idea to also
attach repair receipts to the report if you have used a contractor for some
of the items. A professional inspection report answers buyers questions
early, creates a higher level of trust in your home and reduces
re-negotiations after contract.
Offer a Service Contract
The home service contract (also called home warranty) covers the cost of
certain repairs to mechanical, plumbing and electrical systems and
appliances during the buyer's first year of ownership. The cost of the
policy is about $350, but may be more if a pool or other items are added.
The fee is paid to a third party warranty company, who provides repair
services for the buyers during their first year of ownership. These policies
help to reduce the number of disputes about the condition of the property
after the sale. They protect the interests of both buyer and seller.
Should You Remodel?
Often clients ask us if they should remodel their house for sale. I believe
the answer to this is no - major improvements do not make sense when selling
a home. Studies show that remodeling projects do not return 100% of their
cost in the sales price. For the average home, it does not pay to move
walls, tear out cabinets, re-do kitchens and bathrooms, or add rooms, in
order to sell. There is a fine line between remodeling and making repairs.
You will need to draw this line. Here are some decisions you may need to
consider:
- Countertops are outdated or wrong color: It may be worth it to replace the
countertops if other components of the house are acceptable. An attractive
countertop can transform the kitchen, and the kitchen has a significant
impact on the value of your home.
- Carpet is worn, outdated or wrong color: This improvement is almost always
worth doing. Sometimes sellers ask us if they should give an allowance for
carpet, and let the buyer choose. Do not worry about whether the buyer will
like your selection. Just choose a neutral shade, and make the change. New
carpet makes everything else look better.
- Walls need complete or touch up paint: This is a must do! Clean walls are
crucial to a winning presentation of your home. This includes baseboards and
trim. On the walls you should use neutral colors, such as cream, sage green,
beige/yellow, gray/blue. Stark white, primary colors and dark colors do not
contribute as much market value, and may be a negative factor.
- Texture on walls is poorly done, or there is heavy "popcorn" texture on the
ceiling: A clean, simple texture under paint can improve the presentation of
your home. On the other hand, if there is much updating needed in other
areas, it does not make sense to target this item.
- Wallpaper is outdated or torn: This may need to be removed and the walls
painted. However, if the home needs a good deal of additional updating, then
wallpaper should be left as is.
- Bathroom caulking or grout is dirty: Put this on the must do list. Old or
darkened caulking is a turn-off to buyers. It is easily replaced.
- Drainage problems, or leaks in the plumbing or roof: This is a
must fix! Be careful that you correct the source of the problem, use
professional help to check for mold, and fully disclose the repair. Make
sure your contractor gives a warranty that can be passed on to the buyer,
but avoid giving a personal guarantee of the repair.
- Sheetrock holes, missing trim, torn vinyl, broken windows, rotten
wood or malfunctioning equipment: These are all repair issues that should be
addressed. Homes sell for more that show a reasonable level of maintenance.
Shrubs are overgrown and flower beds are bare or weedy: This is one of the
most cost effective changes you can make. Mow and edge the lawn. Add
inexpensive mulch to flower beds. Add a new doormat and pots of blooming
plants to the porch. Cut back overgrown shrubs or remove them altogether.
Large, woody shrubs can be a detraction to your home, especially if they
cover windows.
- Gutters need cleaning and trees rub against the roof: These are items that
comes up frequently on buyers' inspection reports. Make sure your tree limbs
do not touch the roof.
- Heat/AC, Plumbing and Electrical systems: All of these systems need routine
maintenance. It would be a good idea to have the heat/AC system serviced and
filters changed. Check for plumbing leaks, toilets that rock, corroded
valves on the hot water heater and other plumbing problems. Replace burned
out bulbs and electrical fixtures that do not work. Check your sprinkler
system and pool equipment for little problems.
Make Needed Repairs
As you prepare your home for sale, your first step should be to make needed
repairs. By making repairs you will answer buyers questions early, build
trust in your home more quickly, and proceed through the closing process
with fewer surprises. Your home will appeal to more buyers, sell faster and
bring a higher price.
Roselind Hejl, CRS, is a Realtor® with Coldwell Banker United in Austin,
Texas. Roselind Hejl's Austin Texas Real Estate Guide offers a wealth of knowledge about the City of
Austin, homes for sale, real estate market trends, and buying and selling
advice.
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