When a homeowner prepares to sell his property, he usually cleans it up and thinks about what repairs or improvements will return more than his cost and help him sell his house faster. Some repairs and improvements will return 100% to 200% or more of their cost, while others may not increase property value at all.
The most productive improvement that can be made is to patch and paint all the rooms of the building. We prefer to use a flat white primer and not tint the colors at all. The rooms look like they were hit by a snow storm, but they look bigger and allow the buyer a “fresh palate” to paint whatever colors they want. If your property has wild and crazy wallpaper, it’s worth the effort and cost to remove it and paint the walls white.
The best bang for your buck for an upgrade cost is installing a new kitchen. We do not use custom cabinets, but off-the-shelf cabinets from major home stores. If the cabinets are in good shape but need something to cheer them up, replace the countertop and backsplash.
We do this with 12″ x 12″ granite tiles that we bond together and use the smallest possible grout line. Also, we add the same granite as a bull nose edge finish. The cost of granite is 1/10 to 1/20 of the cost of solid granite and the backsplash can be carried from the walls to the bottom of the cabinets. It can also be installed in two to three days maximum using only a tile cutter. This improvement will pay you back many times its cost and has many times made the difference in the quick sale of a property.
The property’s major mechanical systems include electrical, plumbing, heating and air conditioning, and the roof. If what the property has is a fuse box, it’s better to upgrade it to circuit breakers so the buyer doesn’t have to. Plumbing repairs are a must, and usually just mean leaky faucets that need new washers or valves that the homeowner can screw on.
Heating and cooling systems should be checked and maintained, but not replaced, as it is best to give the buyer a credit at the closing table or slightly reduce the selling price. If the roof doesn’t leak, clean it up and leave it alone. If you have a leak, fix it and fix any stains on the ceiling or walls as soon as possible before listing the property. If the buyer protests the age of the roof, they must obtain a replacement and negotiate it at a reduced purchase price.
Spruce up the landscaping, as it’s the first thing a prospective buyer sees. An investment of a few hundred dollars can attract more people inside the property and easily pay back many times the cost.
If there is a partially finished or poorly finished foundation, make the best possible repair to complete the job at the lowest possible cost. In some cases, it may be better to remove the old work and expose it.
One last thing we always do is get an inspection report from our inspector. We use this as a checklist of things that need to be fixed before a prospective buyer has their inspector do an inspection that scares them out of buying the property. Doing what it takes to make your property clean, fresh and presentable to prospective buyers doesn’t have to cost a lot, but the price return you receive will be far greater than your investment.
