1. Any remodeling project will add value to your home.
While many remodeling projects will add value to a home, some can be seen as a negative by future buyers. For instance, combining two smaller bedrooms to
create one larger bedroom may better fit one homeowner’s lifestyle today, but it may cause the home to lose value in the eyes of a future buyer who needs the two separate rooms.
2. Buying the highest-quality materials attracts more buyers.
Installing high-end materials may seem like a wise decision, but it can backfire. For instance, using the most expensive tile in a bathroom may create an
impressive appearance, but value-conscious buyers may opt for a more affordable home if the seller has over-improved compared to others in the neighborhood.
3. Adding square footage always adds value.
A better way to think about this statement is to insert the word useable into the sentence. Finished attics and basements – even if
considered liveable by local standards – may not be attractive to a buyer if they are not finished to the same standards as the rest of the home.
4. Colors and textures – safe and simple is better.
Keeping a home “vanilla” so buyers can choose their own style and décor might be a safe bet, but it ignores the fact that most buyers just don’t have the
ability to visualize the home differently. Without splashes of color and mixtures of texture, sellers can lose value to others that have taken the time to consult with an interior designer.
5. Inside improvements are better than outside improvements.
Not necessarily. If a home’s exterior has been neglected or doesn’t offer a good curb appeal, a buyer might stop there – and then the seller’s efforts on
on the inside may not net them any more dollars. To get the biggest bang for their remodeling buck, sellers should start from the outside and work their way in.
6. Adding a bedroom is better than adding a bathroom.
It depends on the starting point. If a seller only has one or two bedrooms to start with, adding a bedroom before adding a second bath is probably a wise
choice since most buyers are more attracted to three-bedroom homes. On the other hand, if the home already has three bedrooms and only one bath, the sellers’s next investment should probably be in a
7. Paint hides a multitude of sins.
Dry rot? Fungus damage? Mold problems? Carpenter ants? Termite issues? Nothing a can of paint can’t fix, right? Wrong! Not only does this practice violate
disclosure laws in most states, it can set sellers up for liability after the sale, as most buyers will want the sellers to foot the bill for these hidden issues.
8. Converting a garage to living space is a great trade-off.
Nope. A garage conversion is almost always viewed negatively by future home buyers unless the sellers replace the lost garage with another parking and
storage space of equal size.
9. Sellers can save money by doing improvements themselves.
For some homeowners, wiring a new lighting fixture or plumbing a new dishwasher is a no-brainer, but for others it may end up costing more later if they
have to have the work redone by a professional. Another consideration is local and state laws regarding remodeling work: In many states if a buyer has purchased a home to remodel and resell, they
must either hold a contractor’s license or hire a contractor to do the work for them.
10. Pools add value to your home.
This is only true in areas where pools are must-have amenities. In most areas of the country, pools have more limited appeal – and the idea of maintaining
a pool for ten months out of the year when it can’t be enjoyed won’t appeal to most buyers.
Knowing these top home-improvement myths will allow you to help your seller clients choose the right remodeling projects. But don’t stop there. To
keep your pulse on the amenities that are coveted most in your market, talk to local remodeling professionals, contractors, and home-improvement specialists on a regular basis.
Want more great tips to share with your seller clients? Download this free handout to help them understand how to increase their home’s value.
HELPFUL HINTS IN PREPARING YOUR HOME FOR SALE
To facilitate the sales process, please consider the following information and documents pertaining to your real estate:
- Desired price
- Location (exact address)
- Type of real estate (house, condo, multi-unit, etc.)
- Year the property was built
- Exact dimensions
- Detailed floor plan
- Information about included furnishings
- Documentation proving ownership
- Brief description of the property
Once you are ready to offer your property for sale, or if you are having trouble assembling the required documentation, please contact me, I'm happy to assist you at every step of the process.
Offering an incentive is a good idea, but only if you offer an incentive that can actually attract a buyer. Here are the 3 most attractive buyer incentives that are most likely to be successful,
according to the 2011 National Association of REALTORS Survey of Home Buyers and Seller:
1. Home Warranty Policies
The thing that is most attractive to buyers is a home warranty policy. The good news is that this is also the most cost-effective incentive option for sellers, too.
Sellers can assure buyers that any unexpected repairs that fall under the warranty policy will be covered. A home warranty typically costs only a few hundred dollars for the seller and can
offer the buyer a tremendous amount of peace of mind. There are a number of home warranty providers out there, so make sure you do your research to find the best provider for the home in
2. Assistance With Closing Costs
The economic and lending environments have created a situation in which many prospective buyers don’t have the cash required to cover their closing costs. Many times, the difference between
a buyer being able to buy a home or having to pass it up can lie in the closing costs.
Sellers who are willing to contribute to the closing costs stand a much greater chance of attracting a larger pool of buyers. Sellers can decide how much they want to offer based on what
makes financial sense for them and the prospective buyers. While this might be a bit more costly option than the home warranty, it can be equally as effective in sealing a deal.
3. Remodeling/Repair Credit
If your listing has a feature or flaw that repels buyers, consider offering a credit towards repairs or remodeling. If you are receiving feedback that buyers consistently don’t like a
particular aspect of the floor plan or condition of a listing, then consider a credit. This gives you and your client a way to overcome a potential objection right up front. The more
objections you can remove, the closer you get to a sale.