How Much Work To Do Before Selling a House: 3 Levels of Prep
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- Richard Haddad Executive EditorCloseRichard Haddad Executive Editor
Richard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
You’re selling a house that needs repairs, but you don’t want to spend too much money or sweat equity if there’s no significant return on your investment (ROI). So, before you pay workers or strap on your trusty toolbelt and dive into your next home improvement project, you’ll want to carefully choose the right repairs to maximize your profit.
To help you determine how much work to do before selling your house, we’ve gathered expert advice from DeWayne Carpenter, a top-performing real estate agent in Melbourne, Florida, with 29 years of experience; and Jennifer Rosdail, a top agent in San Francisco, California, with 23 years of experience.
Their insights and our research point to three levels of home improvement that can result in a successful sale. These include:
- Select improvements: Some needed repairs, but not everything
- Turnkey: Completely repaired or remodeled from top to bottom, move-in ready
- As-is: Minimal improvements (if any), which are reflected in the price
Let’s review each route so you can decide what’s right for your needs and goals for this sale.
Level 1: Make select improvements (the sweet spot)
The level one sweet spot is doing repairs that will make your house marketable. The goal for most home sales is to select just the right amount of improvements that will attract buyers, without fixing everything in sight.
“Usually, I want to get a home’s condition to the point where someone can simply move in,” says Rosdail.
Here is a list of ways you can achieve this balance of repairs and preparations when selling your home.
Clean and declutter
According to Carpenter, one of the best ways to start is by cleaning and decluttering your home so buyers can envision themselves there, and not be distracted by any extra items on display.
“The biggest advice I give to sellers is to go through with a buyer’s eye,” says Carpenter. “If you don’t have stagers or someone that can help you with that, just try to be hypercritical of your own house and think, ‘Oh, if I were buying this house, this would turn me off or I would notice this.’”
If you find that a professional cleaner would make it easier for you to tackle cleaning the entire house, according to Angi, hiring a pro typically costs between $118 and $237, depending on how much work is necessary. Hiring a professional stager usually costs an average of $1,500 to $4,000, according to Homeguide.
Deep clean or replace old carpet
If you have a carpet that’s in decent shape but needs a deep cleaning, that can make a big difference when selling your house, since flooring is everywhere. But if the carpet really needs to be replaced, choosing consistent flooring for the house typically looks more open and makes a lasting impression. Installing new carpet may also be a solution for your buyers who won’t have to worry about the replacement costs, which can average between $782 and $2,812.
“Flooring is your biggest ROI. Buyers do not like seeing a lot of transitions between flooring,” says Carpenter.
Carpenter explains that by changing the flooring throughout the house, the rooms will look bigger, as opposed to renovating a single kitchen space where you might be tempted to renovate multiple items after you start, which can become a Pandora’s box.
Paint with neutral colors
Painting using neutral colors, such as whites and creams, is typically the best way to freshen up your house and give the biggest pool of buyers a chance to visualize a blank slate for their decor. According to HomeAdvisor, the average cost to paint the interior of your home is between $966 and $3,086, depending on the total square footage of the rooms.
Spruce up your curb appeal
Having nice curb appeal is the best way to make a great first impression and hget buyers excited to see the rest of your house. Carpenter recommends adding fresh mulch, having a mowed lawn, and a clean exterior as the best ways to show attractive curb appeal. If you want extra help, you can also hire professional landscapers who typically cost between $1,249 and $6,281.
Also, according to a HomeLight Top Agent Insights survey, 31% of agents believe that larger or improved outdoor spaces or garden areas are one of the biggest selling points of a house.
Give kitchens and baths a facelift
A facelift of your kitchen and bathroom may be necessary to bring those rooms up to date. Often, you can neutralize with paint, and replace sinks or countertops that need an update without choosing the most expensive options to increase your ROI.
“It makes the whole kitchen [or bathroom] perceived as updated,” says Rosdail.
When you’re making select improvements, you don’t want to go too far, as a complete kitchen remodel can cost between $14,589 and $41,530. The same is true for bathrooms, which can also be expensive, as an entire renovation typically costs between $6,639 and $17,621.
Stage, stage, stage
Carpenter says he sometimes hires professional stagers to come into the house to help the homeowner improve the flow and look of the rooms.
“If sellers have a couch that is in a position that makes the room look closed off and small, stagers will move it. If they have throw pillows or something like that, then stagers might reappropriate those, or if they have excessive knick-knacks, stagers will probably edit those,” says Carpenter.
Carpenter suggests that visiting a model home usually gives the homeowner an idea of what they should strive to achieve, which is creating a homey feel, but not excessive personalization.
Know what NOT to fix when selling your home
When deciding how much work to do before selling your house, you need to determine what repairs will make your home marketable. But it’s also important to eliminate other repairs that aren’t necessary for your bottom line. When making your final choices, you’ll have to decide what is the most cost-efficient to fix. The repairs that typically WON’T fatten your wallet include:
- Cosmetic flaws: Minor scratches on hardwood floors
- Minor electrical issues: A light switch that goes to nothing
- Driveway or walkway cracks: Hairline cracks that are due to the house settling
- Grandfathered-in building code issues: Originally built to code, but the code has since changed
- Partial room upgrades: A new cabinet was added, but nothing else was done in that room
- Older but working appliances: If not working, replace them with good, used appliances
Before you fix anything
Of course, before you repair or replace anything, it’s highly recommended to seek out the professional opinion of someone who has the expertise to guide you. Working with an experienced agent who has the knowledge of which repairs will give you the highest ROI can save you time, money, and energy. HomeLight’s free Agent Match platform can connect you with a high-performing agent who knows what buyers expect in your local market so you can find that sweet spot for home improvements.
Level 2: Go for turnkey
What does ‘turnkey’ mean in real estate?
When a property is turnkey, that means it’s a home waiting for the new owner to turn the key and start living in the house where everything is already done. No major repairs or improvements are needed, everything works and looks top-notch. If a property is turnkey, it usually costs more to get it into this condition, and those costs are typically passed onto the buyer who is looking for a home that only requires unpacking.
Buyers who look for a turnkey property are typically those who:
- Want or need to move in quickly
- Don’t like to do home improvement projects
- Don’t have extra room in their budget for repairs
- Investors seeking ready-to-rent investment properties
Why would a seller choose the turnkey prep option?
- To sell their home at a higher price, depending on the market
- To attract more buyers by marketing the property as move-in ready
- To help a home sell fast, especially in a buyer’s market
- There’s time to do the renovations, and it makes financial sense
This option isn’t for all home sellers, because it will depend on how many renovations are needed and the costs necessary to bring their house to this level. According to Angi, the typical cost to do an entire house renovation is between $19,489 and $88,393. In addition, the demand in the local housing market for turnkey buyers will determine the final price. If buyers don’t want to pay a premium, all the renovation costs might not be recouped.
Also, according to Carpenter, if the owner chooses specific colors like a bold blue countertop where everything is new but not on trend, that can be wasted money since it won’t have a broad market appeal, and buyers will end up changing it anyway.
Next up is the big question: when you’re deciding how much work to do before selling a house, what happens if you decide you don’t want to fix anything?
Level 3: Sell as-is
The opposite of a turnkey is selling as-is, making minimal or no repairs before putting your home on the market. In this situation, if repairs are needed but the home seller isn’t in a position to complete them, usually selling as-is will warrant a large price reduction.
Reasons a homeowner might choose the as-is option:
- You need to sell your home quickly due to finances: You may need to sell your home fast. Perhaps you don’t have the luxury to repair or wait to sell your home and need as much cash as possible immediately. Or maybe you need to pay high bills related to medical issues or job loss, or settle a property dispute during a divorce.
- It’s a property you acquired but don’t live in: You may have inherited a house and want to sell it and don’t live in the area, or it’s a second home you don’t plan to use. Also, renting it out and becoming a landlord doesn’t appeal to you.
- The house needs too much work done: When you bought the house as a fixer-upper, you always meant to repair everything, but it became too costly to do it. Or perhaps the property has experienced a lot of wear and tear over the years, and repairs just feel overwhelming.
- You have to relocate to another state: Getting a promotion or moving to care for a relative has suddenly come up, leaving no time for home improvements. Selling the house quickly and using that money to relocate is your best option.
Rosdail explains that in the case money is an issue, rather than sell as-is, she’ll often offer concierge funds that help pay for necessary repairs to sell the house for the most money possible, and those costs will come out at the close.
Know the risks of selling your home as-is
Many buyers who see homes advertised as-is typically think the house needs lots of work. Regardless of the reason you choose to sell a run down house, this decision will give buyers the opportunity to negotiate a lower price after the home is inspected.
In a survey of nearly 1,000 homebuyers, respondents reported saving about $14,000 by negotiating with the seller for a lower price based on issues revealed in a home inspection. How much less you might receive selling as-is will depend on the condition of your home and your local housing market.
Also, selling your home as is to a typical buyer doesn’t guarantee that nothing will need to be repaired. This is especially true if the house is considered unsafe or not livable, which are basic requirements when buyers are financing the purchase.
Options to consider if you’re selling your home as-is
Beyond conventional buyers who most likely plan to live in the home, there are a number of alternatives for selling your home as-is. Depending on your situation, you might consider a house-buying company that can provide a near-instant all-cash quote to buy your home. Some of these options include:
- iBuyers: These large real estate companies typically look for homes in better condition than homes purchased by investors and flippers. iBuyers are likely to offer more for your home than an investor or flipper.
- Fix-and-flip investors: These “we buy houses” companies purchase homes, make repairs and improvements, and then sell them for a profit. Flippers are often a good option for as-is sellers with houses that need a lot of repairs.
- Buy-and-hold investors: These investors typically purchase market-ready homes at a competitive price and then convert them into rental properties. A buy-and-hold investor may not be as interested in as-is homes that need a lot of work unless the property is in a high-demand location.
The cash buyers you typically want to avoid are those with homemade signs on street corners, whose offer could be extremely low or not come from a reputable business.
Most serious and established investors look at your home strictly as an investment opportunity. Since they don’t have to worry about financing requirements, they usually have the ability to give you a cash offer that can close quickly. It’s important to research a company thoroughly before signing a cash offer agreement.
Get a reasonable offer and close fast
If you’re looking for another alternative to sell your house fast, HomeLight offers a Simple Sale option that simplifies the process of an all-cash offer. Simple Sale has a network of cash buyers on its platform, and partner investors have a wide range of investment strategies, including fix-and-flip and buy-and-hold. This enables Simple Sale to provide competitive cash offers for homes in almost any condition throughout the U.S.
With Simple Sale, you answer a set of questions about your home and receive a no-obligation all-cash offer in 24 hours. If you accept the offer, you can close in as little as 10 days.
Do your homework before you invest in repairs
As you can see, there is no one-size-fits-all answer to the question of how much work to do before selling a house.
After you do your research and consider your options, the level of repair you do will determine how much profit you’ll make when you sell. Before you start planning your next move, consider these takeaways:
- Look at your house as if you were a buyer: Decide what level of repair is necessary to achieve the highest ROI possible.
- Think neutral tones and decor: Buyers should notice your house, not multiple bright paint colors or different flooring that doesn’t match [mismatched flooring].
- Remember the cleaning and staging: Editing a room by taking out things that can distract the buyer is a great way to free up space and spend your sweat equity.
Not sure what preparation level to choose for your home? If you’re looking for a professional opinion from a top agent in your area, HomeLight’s Agent Match can connect you with a proven professional who knows how to hammer out the details for you.
Writer Jennifer Schmidt contributed to this post.
Header Image Source: (Francesca Tosolini / Unsplash)
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