Not every home is updated like a new home that is offered up for sale. Is it really important for homeowners to update their homes before they go on the market? How can lack of updating affect the home’s value?
- Depends on the Price Range
- Most home sellers will command top dollar if the home is in good shape with no “Deferred” Maintenance…eg none of these issues:
- a) Stains on Carpet
- b) Broken wood flooring
- c) un-kept landscaping
- d) Dated kitchens and baths
- e) Dramatic paint, especially faux paint
- Flip Story: Heavily Textured WallPaper
- Heavy smokers tarred to the wall
You are much better off having that wallpaper professionally removed, have the walls re-textured, and painting the room a neutral color.
Buyers translate work like removing wallpaper, changing flooring and light fixtures into tens of thousands of dollars in home value. It will NOT cost that much to do the repair.
However, buyers will call depreciate the value of the property by as much $100,000 to $200,000 in their mind if they make an offer at all.
Even those small decorating wallpaper borders need to go.
This is an easy and inexpensive fix that will update rooms and baths quickly…
As far as how much it affects the value…
If the home is priced under $350,000 they just want ‘move-in ready’ but they may not need to be updated.
Above that, buyers are very picky.
You have to plan on that being your competition.
Part of what we do with our clients is to sit down and look at the competition to determine a strategy for updates as well as pricing.
We can even help the homeowners, in some cases fund some updates and have them paid out of the closing.
A good of thumb is…
If you can get a buyer to make an offer at all.
Take the cost of the update and multiply by at least FOUR times the cost of the repair. That is what it will cost you if you do not:
- Replace, tired, stained carpet
- Replace broken things
- Leave dramatic paint colors or poor faux painting on the walls
- Have bad curb appeal with tired landscaping
- Outdated kitchens and baths
The only exception to that rule is if you Price the Home exponentially LESS than what it costs to do the repairs and buyers see the home as the best DEAL in that price range…
