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Real Estate News and Advice |
November 13, 2009 |
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 Improving Existing Properties For Resale
by Blanche Evans
 When your seller signs a listing agreement, chances are you either have already covered some points that need to be improved about the house, or you will make suggestions at this time. Telling a seller there are a few things that have to be changed, fixed, or improved can be an awkward moment. Having something already written to give your client as a handout could be a helpful way to break the ice and lead into the particular points you want to make. After all, you are representing your clients' best interests, and allowing them to market their homes at a disadvantage can be costly. As one agent put it, "You are either going to sell the home at retail or wholesale. It's up to the seller." Sellers need to know that although they highly value their own properties, buyers will do just the opposite. Buyers are notorious for disproportionately discounting a property to its actual condition and true market value. Your sellers have to understand that market value, however, is directly related to perception, and that the desirability of a property is its true value. Here are some suggestions that we received from a Canadian affiliate, Claremore Services: What can I do to improve my home before I sell? Congratulations! Maybe you're moving to a new city, new country, or just a new neighborhood because you got a new job or a promotion or have a new addition to the family. Now it's time to pack up and move out. Before you start thinking about all of that, however, you need to think like a buyer -- the kind of buyer who will look at your home with a discerning eye. Without spending a lot of money, you can help improve the marketability and value of your home. Cleaner than clean Nothing turns off a potential buyer more than an unclean and cluttered appearance. Take a pad and pen on a thorough tour of your home. We're not only going to look for smudges on walls, stains on the floors, and dust behind the refrigerator, but for cluttered areas, as well. Is there a natural path that allows free movement from place to place in a room, and from room to room in general? Your home office or craft area/workshop may have boxes of things which can be relocated to give an appearance of more space. That doesn't mean hiding it all in the closet! Ask anyone willing to listen, and they'll tell you that apart from kitchens and bathrooms, the most important item is closet and storage space. Clean out the closets a little to show off their roomy interiors. The same holds true for the garage, basement/crawlspace, and storage shed. Now you can get out that mop and pail. As we mentioned above, it is essential to have the kitchen and bathrooms sparkling clean. Make those windows laugh, as they used to say on TV. Pay attention to the areas around switchplates on the walls for fingerprints. Doorways are good places for smudges to accumulate. You never know when your agent will call to let you know that a potential buyer wants to look at your house, so you'll have to keep it clean. Repair it now if you can Don't forget to add to your cleaning list anything that needs replacing or repairing. It doesn't take much time, effort, or money to re-caulk a sink or replace a light bulb. Replacing the old washers in leaky taps, mending window screens, and lubricating squeaky doors and windows are short jobs, too. More complicated repairs to plumbing , heating, or electrical systems should be noted and dealt with. Unless you know what you are doing with these systems, call a pro or two for quotes. Any potential hazard to you or a buyer should be dealt with immediately. Knowing where to draw the line on repairs is a judgment call. A small crack in the walkway or driveway probably won't sink a potential buyer's interest. Maybe they won't like the paint scheme or carpeting. No matter what you do in these areas, a potential purchaser is bound to want to personalize the decor, anyway. And speaking of personalized ... Part of the "clutter" referred to earlier would take into account your fishing trophies or those "beautiful" wedding gifts that you have to keep on display in case of visits by relatives. Off to storage -- NOT THE CLOSET -- they go. Remember, the purpose of the exercise is to sell the home -- not show off your memorabilia. Buyers will tour your home all the while thinking of how their own furniture and possessions will look in the home. In general, put yourself in their shoes, and also keep these thoughts in mind while you are visiting potential new homes for you and your family. Everybody out! Ever heard of "curb appeal"? With your notepad in hand, take a walk outside, and look for weeds and dead shrubs or branches. Cut and rake the lawn to dispose of leaves and clippings. Take care of the flower beds. These tips are useless in the wintertime, but then again, you'll be busy shoveling and salting the walks and driveway. Don't forget to check out the condition of shutters and eaves, paying attention to painting needs. How does that old shed look? As honest as the day is long OK. You've dealt with the visible and cosmetic areas. Let's turn our attention to the basement leaks that happen in spring (thaw time) or any other major fault that you've decided not to deal with for whatever reason. It is advisable to give full disclosure of any problems of which you are aware. In many places, if a real estate agent or vendor can be shown to have knowledge of an undisclosed problem, he or she may become involved in expensive lawsuits. Purchasers may be willing and able to fix these problems on their own. The need for small repairs or even a "handyman's special" won't necessarily hurt the chances of a successful sale. Cost vs. value Apply this test to any repair or improvement you are contemplating in the sale of your home: I am aiming to make my home more sale-able, mindful that the cost of any improvement must raise the value enough to warrant the outlay of money. Will my project accomplish these goals? Here is another area where using a real estate agent can pay off. They deal with buyers and sellers every day. They probably have a good idea of what buyers are looking for. Don't be afraid to consult your agent. Here's a quick list of what the market has to say about potential for return on money spent on home improvements : Kitchen: 73% Published: March 5, 1998 Use of this article without permission is a violation of federal copyright laws. 
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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68.
