Selling your home in any market can be challenging if it fails to meet and/or surpass three of the most important benchmarks:

·         Current homebuyer preferences

·         The inspection process

·         Lending requirements

Talk to your listing agent

Your Berkshire Hathaway HomeServices network agent Andrea Leek  knows your local housing market better than anyone, so be willing to share your goals for selling your home:

1.    Would you prefer a quicker sale or the highest possible price?

2.    Are you willing to pay for updates, for example, a kitchen remodel?

3.    Is time of the essence? Maybe because you’re closing on another home, you have relocation deadline with your company, or there’s a new baby on the way?

Share any information your listing agent Andrea Leek may need to help you decide which repairs, replacements and renovations would be most effective for the current market. In some cases, it may be easier to sell as-is if your home is worth no more than land value. Otherwise, a few nice updates may be enough to net you more of a profit.

Address major issues first

The most efficient way to know what you have to do is to arrange your own home inspection. Yes, that’s something the buyer typically orders, but wouldn’t you rather find any problems before they do?

A home inspection examines systems and appliances. Your home’s operating systems—electricity gas, mechanics (HVAC), structural components (roof, foundation, etc.) and water lines—will impact your home’s sales price the most.

The findings come in a report that you can use to help budget repairs, replacements, and renovations. Go over the report with your listing agent—they can help you decide what’s most important to repair or replace.

Create a budget

Many real estate industry insiders suggest that you not spend more than 30% of the cost of your home on renovations.

The way to determine the right number is not what you paid for the home but what comparable homes are selling for in the current market. Your listing agent can provide a market analysis to show you what homes similar to yours are selling for.

If you purchased your home for $300,000, you’ll want to keep improvement costs under about $90,000. But if the home is now worth closer to $600,000, that budget increases to roughly $180,000. The goal is to ensure your home remains competitive with others in your area, especially where similar properties may have older updates.

Keep in mind that surprises always happen, so at least 25% of your budget should be reserved for delays, overages, and other unexpected expenses, so be careful to avoid replacing items that are still good.

Hot tip: Keep upgrades in line with your neighborhood. When a home is priced too far above nearby properties, buyers in that price range often focus on other neighborhoods that better match their expectations.

Renovations and ROI

According to the most recent National Association of REALTORS® / National Association of the Remodeling Industry “Remodeling Impact Report”, completed remodeling projects are about more than cost recovery, they’re also about bringing joy to homeowners.

1.    Projects that gave homeowners the biggest “Joy Scores” were the addition of a new primary bedroom suite, a kitchen upgrade, and a new roof. 

2.    The best returns on investment were a new steel front door (100%), closet renovation (83%), and new fiberglass front door (80%).

3.    The remodeling projects that have increased the most in demand recently are kitchen upgrades (48%), new roofing (43%), and a bathroom renovation (35%).

4.    Participating agents recommended that the top projects to help sell homes faster and for more money were repainting and new roofing. 

The report advises homeowners intending to sell within the next two years to do the following:

·         Repaint the whole home (50%) or one interior room (41%)

·         Replace the roof if it’s older than 20 years, damaged, or showing signs of wear

·         Replace worn-out surfaces, finishes and materials

·         Improve energy efficiency (electrical panels, smart appliances)

·         Make changes that refresh the home

Again, your listing agent can advise you which renovations will bring the greatest ROI for your home.

Hot tip: In some states, insurers won’t underwrite a policy for buyers if the home has an old or severely damaged roof. If yours is aging, you may be able to repair up to 25% of it without affecting the buyer’s ability to secure coverage. Ask your home inspector or listing agent for guidance.

Meeting lending standards

Mortgage lenders want to avoid scenarios in which a buyer may become unable to make payments, which is why they evaluate income, credit history and debt levels. They also look closely at the home itself. Its condition, safety and remaining economic life all factor into whether a lender is willing to underwrite the loan.

Most mortgage loans must meet underwriting standards set by Fannie Mae and Freddie Mac for conventional loans, and by the Federal Housing Administration for FHA and VA loans. For older properties in particular, lenders focus on remaining economic life. FHA guidelines note that a property must meet FHA minimum property standards as well as any federal, state or local building codes that apply.

Keep homebuyer likes and dislikes in mind

When homeowners remodel, their goals often include improved functionality and livability, better‑quality materials and appliances, and enhanced aesthetics. These are strong areas to focus on when preparing your home for sale. The more a buyer can envision themselves living comfortably and happily in the home, the better.

To support that, some updates may need to be made with the buyer in mind. Today’s buyers tend to arrive with clear expectations shaped by both new‑construction trends and the features they’ve seen elsewhere.

Home builders suggest that many features that were once considered upgrades are now expected by homebuyers, including:

1.    Smart home technology for convenience, energy savings and security

2.    Kitchen‑centric layouts that support cooking together and family gathering

3.    Flexible rooms that can shift between uses, such as office, gym or craft space

4.    Outdoor living areas that feel like an extension of the home

Architects and interior designers also observe growing interest in durable, high‑end finishes made with natural materials, along with features such as:

•      Open kitchen, dining and family spaces

•      Large, functional kitchens with oversized islands and ample pantry space

•      Clear sightlines to gathering areas and the outdoors, often with expansive windows

•      Covered outdoor living areas with features like a fireplace or fire pit

•      Resort‑style primary suites with spa‑like baths and private patios or balconies

•      Split bedroom layouts

•      Flex rooms buyers can customize to their needs

•      Generous closets and abundant storage

A final note

You may think it’s foolhardy to redo parts of your home for some stranger whose tastes are unknown, but you’ll be glad that you did. People will always put their own stamp on their surroundings so don’t worry that you may have made the wrong choices.

If you stick to broadly popular choices for renovations like an open floor plan, paint and decorate in soft elegant neutrals, stage the home to show off its best features, and make sure every repair needed is complete, your home will sell quickly and for more money. 

Call Andrea Leek Top Realtor today! Andrea Leek