For Those Planning to Sell Within 5 Years

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Idnar7

Recycles dryer sheets
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Apr 21, 2008
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How much are you willing to put into your current home to improve it's sale value? We have a house valued between $235k and $265k per Zillow. It is 38 years old and approx. 2600 sqft in a nice neighborhood with close access to schools and freeway. We have been here 18 years. Upgrades include new roof, new driveway/sidewalk/front step, new deck, new siding/windows/doors, fireplace insert, all bathrooms upgraded, wallpaper removed and painted, new kitchen floor, and landscaping. We are planning for a kitchen upgrade this year. Including appliance replacement we have paid for the house twice. My question is how much is enough? We haven't replaced any carpeting as we have had pets. I am just thinking to offer a generous carpeting allowance, but I know some people don't want to deal with this. Our markets is really hot with 8 houses selling on our block. Most have been flipped foreclosures or old houses updated. Struggling with where the point is to completely redo versus giving allowances. Also struggling with how to do the kitchen - hire a designer or just do what we would like. Anybody's experience would be appreciated. It used to be you could sell your house, buy a town house, and pocket a nice sum. Now it seems like break even at best. Thanks for input
 
Clean it up and make it look nice...you've already done plenty, in fact, maybe too much (although, I'm not familiar with your neighborhood).

I'm an avid DIYer, so I'd rather buy a house that needs upgrades so I can do it the way I want rather than pay for someone else's reno that may not be to my liking.
 
Zero. Why bother if it's a popular neighborhood. I would only spend money on things that I would get the pleasure of using or whatever is expected for the market. It sounds like you've already done that.


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I would interview three successful Realtors and see what they say. We sold a house last year, had been updated and maintained. Realtor suggested painting many of the public rooms a color I call "prison gray" and it sold to the first person who saw it (priced correctly) for $1K over ask and no contingencies.


Also tried to sell a summer house (thin, expensive market) where the Realtor (we chose a friend and made a mistake) where we were told to not do any upgrades. House could have used them. First selling season, few showings, no offers. Spent the winter doing many upgrades, still didn't sell this summer season. Many more showings. Wish we would have done the upgrades before listing it originally.
 
Approximately zero renovations have a positive ROI. At this point, your kitchen reno (in my opinion) can only really benefit you by spending money to sell the place quicker. If you kitchen isn't "bad" (meaning it would turn off many potential buyers), then I wouldn't bother spending the money to remodel it. If it is bad, then I'd take 45th's advice and talk to a realtor to see what kind of kitchens are helping to sell houses so you can make similar modifications.
 
First many of the "upgrades" you list are actually "maintenance". It's part of the cost of owning a home. A new roof is not an upgrade.

I agree with the suggestion to talk to a few realtors when you are ready to sell - and also to do some due-diligence by going to some open houses and seeing how updated competing houses are. How much you need to upgrade is dependent on your local market... there is no one-size-fits-all.

DH just completed the sale of MIL's house. The realtor knew we did not want to put tons of money into the house - but also knew that in that market - some upgrades were needed. We settled on replacing the old carpet (stained and icky) with laminate (not a high end neighborhood - laminate was the right call) and painting the entire inside (again - this needed to be done - it had been at least 10 years since the last paint.) No new appliances were purchased - although that was suggested by the realtor. The new owner paid $2k over asking price.
 
Our story is surprisingly similar, though we're closer to paying for the house 1-1/2 times. My DS was a realtor and she says most (not all) buyers don't have much imagination - so they can't really see what the house could be after a reno. They evaluate homes as is. So homes with "potential" usually don't show well against turnkey homes. And these days most people don't want to go through the disruption of remodeling, the time or the uncertain costs - especially families with two working parents.

Allowances might work but they have to be generous. My Dad plans to include a $15K allowance to update his 70's kitchen. IME it will cost at least $30-45K. And allowances still confront the buyer with reno disruption.

It's probably good advice to ask a knowledgeable local realtor. But almost no matter where you are, there will be newer homes, brand new homes and older fully remodeled turnkey homes that you'll be competing with. Most buyers will opt for turnkey unless there's a big discount on a house that needs any significant updating.

Good luck, we're in the same boat...
 
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I am with the zero crowd. A new coat of neutral paint and repair any obvious defects but you won't get your money back and if someone comes in and doesn't like the reno work that has been done they will be less inclined to buy knowing that you are expecting to get your money out on something they may have to change.
 
Consumer Reports (free at library) had a comprehensive issue on fixing up a house to sell, within the last year. Bottom line was that only painting has any kind of return on investment.
 
I am never selling again if I can help it.

When I sold my prior home in the summer of 2015, first I moved out, leaving it completely, totally empty and bare. Next I wanted to do some delayed maintenance and repairs and then clean it, fix it up, and stage it and (blah blah blah...) before putting it on the market.

My real estate guy stepped into my decision process the day I moved out, before any repairs or anything had been done, and said said no, no, no.... :LOL: actually he would only agree to having it cleaned and then wanted to put it on the market that very day. He knows the real estate market here, and I guess demand normally drops off here after school starts.

Anyway, I did what he said and it sold four days after I put it on the market, for a great deal more than I expected. My buyers never noticed or asked for any of the big expensive repairs that I had planned to complete before selling. My point is that you are hiring a seller's agent who you know to be an expert in real estate sales in your area, so make your choice wisely, and then listen to what he has to say when you are making these decisions.
 
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"First many of the "upgrades" you list are actually "maintenance". It's part of the cost of owning a home. A new roof is not an upgrade."

I guess I don't agree with this. 2 homes of similar price, location and attractiveness, one has a new roof, one is 10 years old. I'll consider the one with the new roof to have more value. Same with water heater, condition of concrete, HVAC system, etc. Less out of pocket to me in the future.
 
We moved 5 months ago, but are just finishing moving the rest of our "stuff". I'm going to repaint the 3 bedrooms and replace the carpet. Fortunately, we often travel through Dalton and can purchase carpet at half what I can get it locally.

The original kitchen cabinets were semi-customs, and I put new raised panel doors on them when I reconfigured and painted the cabinets--and got rid of a too large island. We also replaced hideous purple formica with granite cabinet tops.

If the cabinet framing is good, replacing the cabinet doors and paint goes a long way. I spent maybe $500 on custom fit doors.

A good pressure washing of the exterior, sidewalks and driveway also goes a long way. I cannot impress how important curb appeal is, either.
 
The last couple of house sold in my neighborhood sold for the asking price "As is" and their attitude was if you want it buy it, if not take a hike, all sold within 3 months, outdated kitchens and all. I guess if you are not desperate to sell you can do that.
Both of them sold and then rented in the area they are going to relocate to. No double house carrying cost, no rush to buy or sell.
I like that way to sell and will emulate it when I'm ready to go.
I would never buy before I sell.
 
We sold in August 2015 in a super-hot California market, and got a dozen offers in one week. Our kitchen had been remodeled - in 1998, but it looked new, IMO because we had hired a designer, who recommended shaker cabinets and commercial style appliances before they really got popular. The advantages of hiring a designer is he/she can help prevent your making a mistake in either product selection or layout, both of which are important to buyers. Good designers can also help you stick to a budget by telling you when to splurge and when to save. So I think a kitchen designer is worth the cost.

However I would question whether it is worthwhile to do a major kitchen project if you are planning on selling soon. When we sold the main fix-ups we did before listing were in the yard, mulching, trimming, etc. so everything looked perfect, and "staging" the inside, though we did the staging ourselves, with our own furniture, just buying new accessories like pillows and fresh flowers. We also removed all the ratty furniture and anything stained, thoroughly de-cluttered and depersonalized, so the place looked very clean if a bit sparsely furnished.

We did interview 3 agents before hiring one, and we took her advice to the letter. She was the agent with the middle of the road approach, between one agent who said do nothing, and one agent who wanted to hire a professional stager. We were very happy with her advice and our overall results.
 
Newventurer said:
"First many of the "upgrades" you list are actually "maintenance". It's part of the cost of owning a home. A new roof is not an upgrade."

I guess I don't agree with this. 2 homes of similar price, location and attractiveness, one has a new roof, one is 10 years old. I'll consider the one with the new roof to have more value. Same with water heater, condition of concrete, HVAC system, etc. Less out of pocket to me in the future.
Click to expand...

Handy tip of the day - the quote button is right under the post... makes it easy to quote. If you're on the android app you can tap the post to select it - and one of the options is "quote". I'm not saying this snarky - I'm trying to be helpful.

Now - to the point you are making. Yes - a newer roof is a factor in a buyers consideration. Just like the layout is a factor, and the neighborhood, and whether there is carpet or hardwood floors. But if you own a house and, over time, you realize the roof needs replacing - you do it because you don't want water damage... not because it's an upgrade... Just like you change tires on your car when they are worn... it's part of the cost of ownership and considered maintenance. An upgrade would be replacing items that are still fully functional and operational for style reasons. For example replacing your corian counters (circa 1980) and replacing them with granite (circa 2000+). The corian is indestructible and still looks like new - but perhaps it was in a soft pink (again going with the 80's theme)... that would be an upgrade.
 
45th Birthday said:
I would interview three successful Realtors and see what they say. We sold a house last year, had been updated and maintained. Realtor suggested painting many of the public rooms a color I call "prison gray" and it sold to the first person who saw it (priced correctly) for $1K over ask and no contingencies.


Also tried to sell a summer house (thin, expensive market) where the Realtor (we chose a friend and made a mistake) where we were told to not do any upgrades. House could have used them. First selling season, few showings, no offers. Spent the winter doing many upgrades, still didn't sell this summer season. Many more showings. Wish we would have done the upgrades before listing it originally.
Click to expand...

+1. Use a Realtor to get the only true value in your area, sold MLS comps (the same that appraisers use for loans). Interview 3 Realtors, go with the one with the most LISTED HOMES SOLD in your specific area. Ask all 3 Realtors for opinions on fixing or upgrading items. Carpet allowances (cash at closing) no longer work since federal mortgage rules will not allow them (Are sometimes used as downpayment money-banks know that.) Neutral paint (beige, off white, etc) is nearly always a good choice.

There are "Selling seasons" for most areas of the country. In FL, it could be late summer/fall, before the snow birds return. In the Midwest, it is early spring through August...driven by parents wanting to move before school starts. (Plus, few people enjoy walking through the winter snow/slush to look at homes for sale.) Be one of the first homes listed when your area's selling season begins. Good luck!
 
Absolutely not.

But we have intentionally put ourselves in a low cost $100K townhouse that has a "floor" on price due to the area. Because of that, there is also a ceiling. Kind of like a bond fund, I guess ;)

If I put $10K of upgrades into it, I might be able to realize $2K extra on a sale. Not worth it.
 
We just sold our home in NY this summer and it took me about 5 weeks. We redid nothing. The house is very clean, warm and in a cul-de-sac in a great community. The young couple buying plans to makes changes based on what appeals to them. I'm happy with the price we got, and even happier that we didn't spend the time and money making upgrades.
 
We, self included, should probably mention where we are. I'm in flyover country. There are some cities/regions where demand is very strong (and no reno is required), others where homes are very hard to sell at any price/condition, and everything in between...
 
$0 if it is just to sell it -- with RE commissions, state real estate transfer fee and other fees proportional to sales price just let the buyers spend the money and not enrich the agents/the state unnecessarily -- but you probably won't get this advice from your well compensated RE agent.

-gauss
 
The carpeting with pets is hard. You have to have someone really honest walk into your house and see what it smells like. Too many people with allergies these days. So if it smells like pets, you'll have lost a lot of people that wont' even look, they will walk in and right back out again. Pergo would then likely be your best option. People may not like it but then it becomes a "personal choice" vs. a necessary repair.

The kitchen, you can usually do minimal changes and make it look way more updated. I swapped out the gold handles with cheap 50 cent pewter ones. My black and white dishwasher I figured out you could swap it to all black. I had a nasty backsplash so just took it off.. swapped out one of those 70s light boxes for a normal light fixture... found a clearance faucet, all for under $100. It doesn't have to be updated, it just has to not scream 1960/1970.
 
Midpack said:
We, self included, should probably mention where we are. I'm in flyover country. There are some cities/regions where demand is very strong (and no reno is required), others where homes are very hard to sell at any price/condition, and everything in between...
Click to expand...

Yes- definitely a wide variation. I sold two houses in Bergen County, NJ, in 1997 and 2003, with very few upgrades- heck, it cost enough just to keep the place maintained. I suppose, though, that replacing the nasty pink tile in the shower off the MBR was a good investment on the second one! Both had multiple bids above the asking price.

DH and I are now in flyover country and they're VERY picky here. We did more than we ever did back in NJ but there was still a lot of whiny feedback about light fixtures and other superficial features being "dated".

I agree with getting the advice of realtors familiar with the market. Keep in mind, though, that the primary benefit of making the changes they recommend is likely to be a reduction in the time it takes them to sell it rather than a good dollar return on what you spend.
 
Last year, I "updated" by repainting, putting in new carpet, and minimally renovating the bath, knowing I would be selling in 5 years. I did so because I wanted to enjoy the place (work done was badly needed) while not spending too much due to selling in the near future. In this part of Lost Angeles, the hipster roaches will do and pay anything just to live here. I'm pleased I did only enough to enjoy and help sell it while keeping within a fairly tight budget.
 
karen1972 said:
The carpeting with pets is hard. You have to have someone really honest walk into your house and see what it smells like. Too many people with allergies these days. So if it smells like pets, you'll have lost a lot of people that wont' even look, they will walk in and right back out again. ...............
Click to expand...

+1

Sounds like carpet is the one big open item here. I sold a 30 yo home 2+ years ago in pretty much the same condition (everything pretty much redone/replaced in the previous 5 or so years)...except the carpet which was older (I also had pets most of the 15 years I was there). All three realtors recommended replacing the carpet especially since I was selling the house empty (minor staging only, I was told my mix and match bachelor pad stuff just didn't cut-it :facepalm:). It wasn't that expensive given the I already had installed tile in the kitchen and bathrooms (previously linoleum) , and had put H/W in the LR & DR (previously carpet) 5 years before I sold (less sq. ft. to re-carpet).

Many realtors often know professional carpet installers that either offer a good discount on the whole job, or just someone that "moonlights" will install the carpet a reasonable price, if you can pick it up yourself (carpet and padding are really cheap from discount warehouses if I remember correctly) and have it sitting in your garage.

Off course if your selling while still living there with pets, the "carpet allowance" in your back pocket for a counter offer option may be the way to go (after a "Stanley Steamer" cleaning).

Just my 2 cents,

Sounds like a nice house. Either way it should sell fairly quickly given data points in the OP.
 
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