You Have an Older Home and are Thinking about Selling. What are the alternatives for the Best Return? What Fits You?
The question sellers ask is whether they do some updating prior to listing, and, if so, what should they do? This question is typically driven by the notion that if you spend money, what will be their return assuming a higher price for their home?
- Should you do nothing, just put it on the market and go from there? What are the benefits?
- Or should they just de-clutter, paint and do cosmetic work, and maybe stage the house to more current market standards? Will this make for an easier sale?
- Or should they invest in updating the baths, maybe redoing the kitchen and even more costly work? Is this a good return? Is it worth the time and effort?
The answer has to do with resources and economics, i.e., what are the costs and what are the potential benefits…
Our rule is, if the resources are available to invest in the sales updating process, at whatever level appears appropriate, will the return from the money invested realize a doubling of the incremental dollars invested ? If so, then it makes sense to spend the money if those resources are available. Or is the effort not worth the investment…
We have organized all of these plans from doing nothing, to painting and de-cluttering and minor staging, to more serious updating, to total remodeling. In all of these cases we have achieved at a minimum a shorter marketing time, and at best substantial return on redoing work to achieve a higher sales price. Our best return was regarding a fixer on the Belvedere Lagoon that had been a rental property for 20 plus years, needed serious work, we redid the kitchen did all the repairs, did the baths, fresh paint, carpet, exterior paint, tree work, landscaping, etc., the house as is would have sold for $2M as is, the owner spent about $125K,we managed the upgrade and staging, it ended up selling for $2.7M, a worthwhile effort….
We have done numerous homes in order to increase the sales value and have the resources to get the job done. However, we will not recommend an upgrading program for sale unless, one, the seller has the resources to pay for the work that needs to be done, and, two, it appears that the money invested will at least double in incremental value at the time of sale.
Call me, David Kirchhoff, if you have an older home and want to evaluate how to potentially upgrade your sale price from its as-is value….
David Kirchhoff Fine Homes Cell/Txt 415.531-2656…text me to set up a time to talk, or email, voice too if that’s all that works for you…