To sell your home this spring, it may need more preparation than it would have a year or two ago. Today’s housing market has a different feel. There are more homes for sale than there were at this time last year, but inventory is still historically low. So, if a house has been sitting on the market for a while. That’s a sign it may not be hitting the mark for potential buyers. But here’s the thing. Right now, homes that are updated and priced at market value are still selling fast.
Mental Math Consideration
“Consider how the variables in the typical buyer’s mind have changed during the pandemic:
𝑈𝑛𝑟𝑒𝑛𝑜𝑣𝑎𝑡𝑒𝑑 𝑉𝑎𝑙𝑢𝑒 = 𝑅𝑒𝑛𝑜𝑣𝑎𝑡𝑒𝑑 𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 − (𝑈𝑛𝑟𝑒𝑛𝑜𝑣𝑎𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 + 𝑅𝑒𝑛𝑜𝑣𝑎𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡𝑠)
In other words, to price fixer-uppers. Buyers look at the price of move-in ready units and back out the cost (and headache) of renovation.
For example, if renovated units are selling for $1M and an unrenovated unit can be had for $800K with an expected renovation cost of less than $200K, then a buyer can sense the value proposition.” states Urban Digs
Then there is the Hassle Consideration
𝐻𝑎𝑠𝑠𝑙𝑒 = 𝐶𝑜𝑠𝑡𝑠 + 𝐸𝑓𝑓𝑜𝑟𝑡 + 𝑇𝑖𝑚𝑒
The higher the hassle factor increases. Then the higher the larger the price reduction to induce an offer from a consumer.
Curb Appeal
Today, homes with curb appeal that are presented well are still selling quickly, and sometimes over the asking price. According to Danielle Hale, Chief Economist at realtor.com:
“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing.”
With the spring buying season just around the corner, now’s the time to start getting your house ready to sell. And the best way to determine where to spend your time and money is to work with a trusted real estate agent who can help you understand which improvements are most valuable in your local market.
Curb Appeal Wins
One way to prioritize updates that could bring a good return on your investment is to find smaller projects you can do yourself. Little updates that boost your curb appeal usually work well. Investopedia puts it this way:
“Curb-appeal projects make the property look good as soon as prospective buyers arrive. While these projects may not add a considerable amount of monetary value, they will help your home sell faster—and you can do a lot of the work yourself to save money and time.”
Small cosmetic updates, like refreshing some paint and power washing the exterior of your home, create a great first impression for buyers and help it stand out. Work with a real estate professional to find low-cost projects you can tackle around your house that will appeal to buyers in your area.
Not All Updates Are Created Equal
When deciding what you need to do to your house before selling it, remember you’re making these repairs and updates for someone else. Prioritize projects that will help you sell faster or for more money over things that appeal to you as a homeowner.
The 2022 Remodeling Impact Report from the National Association of Realtors (NAR) highlights popular home improvements and what sort of return they bring for the investment (see graph below):
Remember to lean on your trusted real estate advisor for the best advice on the updates you should invest in. Agents are attuned to know what local buyers are looking for. Additionally, they have the latest insights into what your house needs to sell quickly this spring.
Coldwell Banker Warburg offers a RealVitalize® concierge program to sellers for the opportunity to make home improvements prior to selling the home. Having a home in tip-top shape drives a better list price, acquiring higher market offers or minimizing time on the market and paying nothing until closing.
RealVitalize® Concierge Program
The concierge RealVitalize® program by Coldwell Banker provides sellers an opportunity to make home improvements and repairs. Preparing the home for sale in order to maximize the home’s value. We cover your up-front costs. Then we get paid back when your home sells*. No hidden fees, interest charges, or markups! RealVitalize partners with Angi – whose powerful network of qualified service professionals work across 500+ service categories in your local market.
Happiness Guarantee
Our partner Angi offers a customer “Happiness Guarantee” on the work conducted. Only their top-rated vendors are sourced for the program. Additionally, they come with a “Happiness Guarantee” by Angi. If you are not satisfied with the quality of the vendors work. Then, Angi will make it right at no additional cost to you.
RealVitalize Budget
If your initial budget is less than $50,000, you can request an additional budget of up to $100,000 pending equity verification. If your maximum budget has been established after equity verification, you can pay for the overages out of pocket directly to Angi, immediately after the projects are complete.
RealVitalize Pay Back
You will repay the RealVitalize program the exact amount that was spent on Angi service providers’ work — no interest or fees. It will be deducted from the equity of your home at closing. However, if the listing agreement expires. or is canceled or if there is not enough equity in the home sale to cover the RealVitalize costs or 12 months elapse from the date of the first RealVitalize project completion, the seller will be responsible for paying back the RealVitalize program
Key Takeaway
As we approach the spring season, now’s the time to get your house ready to sell. Let’s connect today so you can find out which updates make the most sense.
