Preparing to Sell: Part I
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April 9, 2007
A recent article I published Preparing To Sell in the Spring Surge was about a strategic mindset as a seller (you know ... the 5 Bs). This article is about the tactical side of preparing to sell.
In my experience over the last couple of years, I've met few homes that didn't need some work before going on the market. I'd say conservatively 7 out of 10. The biggest problem with sellers is that they don't look at their home through a buyers eye. This one simple fact will prohibit a home for selling at its highest and best value, or worse, not at all.Just a couple of years ago when the market was red hot, a seller could put a dog house on a 10 square foot lot on the market and it would attract multiple contracts in a matter of hours. Not so today. Buyers simply have too much to chose from. If your home is not in tip-top shape, ready for a buyer move in, you simply will not sell. Unless, of course, you make it a bargain. Even then, many buyers just don't want the headache of having to do spruce up work themselves. Here's what I see in many homes we examine before taking a listing:
- Dirt: Plain and simple, a dirty home is going to turn off buyers. Professional cleaning top to bottom is a low cost investment that returns many times over its cost. For a medium range home the cost could be several hundred dollars.
- Worn, stained carpets: Turn off number two. Occasionally professionally cleaning them will help but, cleaning won't change the wear factor. I recommend replacing all carpet with a medium grade, neutral color with the best pad money can buy. About $23 to $25 per square yard will be sufficient. We've done this many times on medium priced homes and it makes a world of difference. On a higher end home, a more expensive solution is in order to match the higher price range.
- Paint: This ranges from hideous color combinations to just looking worn out. This is true for both inside and out. A freshly painted home not only looks good but could get rid of many years worth of living smells at the same time. Again, neutral colors are best. Don't forget the ceilings. And, hire a professional. Very few of us will do a quality job if we try to skimp and do it ourselves. Don't forget to fix the wood rot outside too. If it doesn't look well maintained all kinds of red flags go up in a buyers mind leading to: "What other problems might there be that can't be seen?"
- Smells: Cooking, smoking and animal smells will cause a potential buyer to turn around at the front door and run away as fast as they can. In fact, I take a buyer client out of a smelly home before we even make it across the threshold. For gawds sake, don't smoke in the house (especially after replacing carpet and painting). Got dog hair floating everywhere? Gotta fix it (as in get rid of the hair and don't let it come back). Nothing, absolutely nothing, is worse than cat urine. It will destroy a home, not only carpets but wood floors as well; even the sub-flooring. There are several neutralizing agents available that may mitigate this issue but, I have found none are 100% effective. If it gets into the sub-floor, ouch! If it can't be totally mitigated you have just narrowed your buyer population to a minuscule number and your price must be adjusted significantly downward to compensate.
- Clutter: Any of us that have been in our homes for more than just a few years have more stuff laying and hanging around than we probably need or use. That neat warming tray gift from Aunt Grace is a keepsake but never used. Buyers want to imagine how they will live in your home. Your stuff falling out of the closets and kitchen cabinets that have not 1 square inch of space left will certainly discourage a potential buyer because the message you send is "there is not enough space in this home." Solution: get rid of it. Throw away as much as you can tolerate and pack and store somewhere else the things you can't (like the warming tray you never use).
- Landscape: Curb appeal. First impressions are everything. Mow, weed, trim and get some seasonal flower color for your home as seen from the street. In fact, sellers need to walk out to the street and look back at their home. Would you buy this home if you had lots of choices? You have to be brutally objective.
- The details: How about the outside metal fixtures? Are they discolored? Falling down? Tarnished? How much better would it be if you replaced those weathered brass fixtures and trim (like front door kick plates and door knockers) with bright shiny new ones? I say it is essential! Impression. Impression. Impression. Same with a weathered, worn wood deck. If it is beyond sanding, re-staining and/or sealing, it should be replaced. Garage doors? If you are like me, garage doors typically attract neglect. If they are rotting, the best thing to do is replace them. We have had good results with aluminum replacements painted to match the house trim. Short of total replacement, I have replaced just the bad panels if they are of a standard style. I've done this on my own home.
- The kitchen: Chances are that if your appliances are more than 10 or so years old, replacing them adds real value to a potential buyer. Especially, if you have cooked on grease and stains that cannot be removed. Those Formica or laminate counter tops? Synthetic or stone counters are expected, especially in newer homes that you may be competing with.
From our experience, a 2,000 square foot home that requires inside paint, outside trim, new carpets cleaning, decluttering and some landscape spruce up will cost in the $10,000 to $15,000 range. A 5,000 square foot home we listed required all of the same plus new medium grade appliances, new interior/exterior door hardware and hardwood floors refinished and the price tag came in at about $32,000. The questions: Is it worth it to do all this? Will I get my money back? The answer: What is your cost if it doesn't sell. A lot of this is what I call "deferred maintenance." If you are not maintaining while you own it, you will need to spend the money before you list to attract a buyer. The market is brutally competitive! As a seller, you want to be a "top seed" (like in tournament rankings).
These are only the major items to consider. There may be others. All homes are unique in some way and may require other work. An objective evaluation would be in your best interest. Preparing to Sell: Part II will be about the next step: Making the emotional connection with a buyer.
Additional reading:
16 ways to sell for top $!
2006 Remodeling Cost vs. Value Report
Top Ten Obstacles to Selling a Home April 19, 2006
Impact of Property Presentation
Begonias in the Garden
Sell Your Home for More Money My April 2007 Newsletter.
16 ways to sell for top $!
2006 Remodeling Cost vs. Value Report
Top Ten Obstacles to Selling a Home April 19, 2006
Impact of Property Presentation
Begonias in the Garden
Sell Your Home for More Money My April 2007 Newsletter.
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Merv made the following comment on May 22, 2007 10:14 AM
John, interesting concept. Sex sells everything from cars to patio pavers (a recent ad on TV). Female agent gamour photos don't go quite this far but is close to the same concept. A couple of years ago This was all the rage on the blogs: REALTORS® Gone Wild.
I didn't find anything particularly offensive with sexyrealty.com but, I don't know how far that business model is going.
John made the following comment on May 19, 2007 7:30 PM
Well that is interesting, but now there is a new web site that is maybe taking it too far. www.sexyrealty.com What the heck do you think about that?
Merv made the following comment on April 10, 2007 6:42 AM
R. You are so right. Many of the homes I see on the market that need work are over priced relative to its condition. It takes a savvy buyer willing to jump into a property that needs work and an agent that can help negotiate a deal without poking the seller in the eye. If a seller is unreasonable, there won't be a deal. A seller's agent must play a huge role in helping a seller understand the true value in the marketplace. Seller emotions and ego play a significant role in getting to a win-win deal.
Thanks for your comments. Very timely.
R. Timm made the following comment on April 9, 2007 10:04 PM
Merv,
Those same points work on the other side of the coin for a buyer to look for. If you see the flaws and you know what amount of time and money will fix them you can make an educated decision and lower your bid accordingly. Also you will probably want to get higher quality items when you do the updating yourself, better appliances, top end hardwoods instead of laminate etc. When a seller is lazy and doesn't fix up the property they will have trouble selling and that can be a great opportunity for a hard bargaining buyer.
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