Best Improvements to Make Prior to Selling

When I meet a potential home seller for the first time, one of the first things I’m asked is what improvements or repairs they should make prior to putting their home on the market. It’s a difficult question, given there are so many variables that determine what a buyer is willing to pay for a home.  Of course, you could spend a fortune to make everything look brand new, but generally, that doesn’t pay off in the end.  What I try to look for are improvements that are cost effective – those that when completed as a whole, will likely gross the seller about 1 ½ – 2 times their investment in the form of an increased sale price. The place that you’re starting from and the seller’s overall financial ability and willingness to make such an investment are key factors in that decision as well, however.  There are a lot of areas in which improvements of moderate cost can add quite a bit in the overall feel of quality in the home.  If the home has already been reasonably updated over time, it is usually pretty easy to identify those items which could help finish it off or add to what has already been done.  The main items to look at are:

• Entryway & Curb Appeal – Is there some minimal landscaping that could be done to improve the feel upon walking up to and entering the property?
• Flooring & Painting –  Can carpets be cleaned or do they need replacement?  Are vinyl floors worn & dated?  Is the caulk on tile floors clean?  Does the entire interior or exterior need painting or can it be touched up?
• Kitchens & Baths – Is cabinetry dated?  Should the countertops or vanities be replaced?  Are the shower or bath surrounds clean and free of mildew or caulk? 
• Fixtures & Finishes – Are light & plumbing fixtures dated or rusted? 
• Landscaping – Can some moderate landscaping improvements be done to improve the feel of the yard or patio?
• Repairs – Are any items obviously damaged and in need of repair?
• “Big Negatives” – Are there any items that stand out that potential buyers eyes may be drawn to because it is unappealing? (old wood paneled walls, pink or lime green bathroom tile, etc.)  What can be done to mitigate them?

Refacing kitchen cabinetry and replacing countertops is not nearly as expensive as some people think, and can really bring a property into the modern age without breaking the bank.  Updated plumbing and light fixtures can change the feel of whole rooms.  Damaged or cheap flooring is a big turnoff to potential buyers.  One of worst things I see done occasionally is an offer of a credit for new carpeting offered instead of just having it replaced.  Generally, you can assume that a buyer will mentally attribute about twice as much money to items that need repair or replacement as they would actually have cost the seller to have done. 

There are some very important things to keep in mind about home buyers in general.  Home buyers are more emotional than rational – It’s a totally different mindset from a home seller.  When a potential buyer walks in, they are thinking about living in the house, how it flows and feels to them.  What they see and feel contributes to their overall sentiment about the home.  If the home isn’t clean, or is in disrepair, buyers will subconsciously feel that the rest of the home hasn’t been well cared for either.  Cleanliness above all other items, is imperative.  If they see damaged carpet or cheap, worn vinyl flooring, even if they like the house overall, you can count on the fact that they will remember it less favorably or feel like its value is less due to those items being in that condition.  While home sellers tend to take a very calculated approach to the value of their homes, a home buyer is seeing it from the perspective of the feel of the house compared with that of other homes they are looking at.  I’ve frequently seen buyers that are more impressed with an immaculately clean and well maintained older and dated home than a newer or more updated home that has not been well cared for. 

It is difficult for many owners to spend the money necessary to get their homes updated if they haven’t been updated at all over time.  In many of those situations, it may be better for the seller to choose an “as-is” sale rather than spending a lot of money to fix or upgrade a home if the work required is substantial.  Many times, spending $4000-$5000 to do some moderate upgrades is an exercise in futility if the overall feel buyers have of the home afterwards is still that it needs substantial work.  In some cases the investment would need to be much greater to have the desired impact.  One of the most prominent examples of this was a home we recently listed and sold in Walnut Creek.  The owners had lived there for many years and the interior of the home was in a poor state – original kitchen from the 1950’s, hardwood floors with numerous pet stains, bathroom with original pink tiles throughout the shower surround and vanity top, and very much in need of some painting throughout.  It’s the kind of house I usually expect the sellers will want to sell “as-is” and avoid any costly repairs, but to my surprise the sellers did want to do what was necessary to get the property to a more salable condition.  After we coordinated about $20,000 on improvements for the owners – hardwood floors repaired and refinished, bathrooms updated with new shower stalls, vanities & flooring, new kitchen appliances, countertop & sink – we went on the market.  The final result was a sales price that was likely $50-$60K higher than what they would have received in an “as-is” sale as a fixer.

Any investment in improving your home is exactly that – an investment.  There is always a risk you will fail to achieve your goals, or even that the overall market conditions will trump the improvements made.  One needs to be cautious and thoughtful about the money spent on improvements prior to a sale, but when done well, it can help you not only attain a better price, but a quicker and more hassle free sale.