How Much Should I Fix Up My Home in a Seller’s Market?
– You’ve lived in this treasure called home for a significant time of your life, with your family. It is probably your first major investment. And now, it’s time to move to a bigger home, as you’ve always dreamt of, for the comfort of your family. As a result, you have decided to put up your current home for sale to either raise more money for the new big home or just to have some extra cash in the bank. This is definitely a good time to sell. It’s a seller’s market where you will have more buyers’ troop in to bid for your home and a chance to raise your selling price. But first, you have to fix up your home to make it appealing to as many buyers as possible. Now, you want to know how much you should spend on the upgrade before listing your home in the seller’s market.
Although the seller’s market is a hot real estate market with a lot of buyers to bid for your property, and many tend to overlook certain flaws as a result of the competition. However, fixing up your home can go a long way to increase its market value, and make you more profit from sale. So it is good to know where to focus when fixing up your home and how much to spend on the upgrade.
The number of factors determines how much you fix up your home before listing in a seller’s market. One is the volume of damage on the property. Before you embark on any repair or renovation of your home, it is important that you weigh the cost of the proposed renovation against the market value of the property after repair is completed to determine the return on investment (ROI). If the cost of renovation is significantly high compared to the value of the property, then you may consider spending less on fixing up the property. Rather, you can lower the price to attract multiple buyers. Since it’s in a seller’s market, you might be lucky to find a lot of buyers bidding for your home and some overpricing it. In this case, consider fixing up wall cracks, kitchen, and bath plumbing as well as the roof.
The comparable properties in the neighborhood may also affect how much you fix–up your home before listing. You can take your time to tour the neighborhood to consider the upgrades done on the houses. They are your competition. Yes, it is a seller’s market and you have quite a number of buyers to bid for your property, but you should also know that these buyers may be bidding for other properties within the neighborhood and as a result have certain expectations when they inspect these houses. Doing a little upgrade especially in your kitchen, bath and exterior can give you an edge and make buyers bid more than your selling price.
It is advised that you spend less on renovation when listing in a seller’s market, on average, the cost of fix-up must not exceed 20% of the total value of your property. However, there are certain areas of the home which requires less fund for an upgrade but which upgrade can help lift the price of your home and produce bigger ROI. These areas are usually the major focus of buyers when inspecting a property. They include kitchen, bathroom, windows and garage. Upgrading these areas will surely bring more ROI.
To get a better estimate on how much to fix up your home in a seller’s market, consult an experienced real estate agent to review your property, evaluate its market value and come up with sales strategies that can help you get a profitable ROI after the sale.
PMD Realty Group has been providing professional home buyer and seller real estate representation since 2013. Our company values are service, honesty, integrity and work ethic. We always strive to exceed our client’s expectations. give us a call at 602.399.9233 if we can be of service in Goodyear, Litchfield Park, Buckeye, Avondale, Sun City, Surprise, Peoria and Glendale in the Phoenix West Valley.
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