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Preparing To Sell Your Home


The best time to prepare a home for sale is years before you plan to put your property on the market. A history of basic, common-sense home maintenance along with occasional well thought-out upgrades will do more to sell a home than last minute cosmetic cover-ups.

Think about what you would look for if you were comparison shopping for a used car. Let's say you are looking at the identical car offered for sale by two different owners. The first car (car A) has obviously just been detailed (professionally cleaned) and looks pretty good. When you go to look at the second car (car B), the owner has just returned from taking part of his son's Little League team to McDonalds. There are some burger wrappers on the floor along with a little dried dirt from the kid's cleats, plus the car needs a good washing.

Car A is now looking pretty good, but a friend suggests that you have the vehicle looked at by a mechanic. The mechanic reports that the oil has not been changed regularly, plus there are signs that the car has been in an accident. It also will soon need a brake job and the tires are older retreads. You decide to have car B checked out. The owner, you find, has had the oil changed every three thousand miles OR three months, plus, being mindful of the safety of the children being transported, has just had the brakes relined and put on top of the line tires. Perhaps a day of vacuuming out the car, maybe a little rug cleaner and a good wash and wax job, you think, might make car B the best car to buy.

If this makes sense, read on. Very few houses are sold "as is" anymore. The buyers who make offers to buy "as is" frequently do home inspections and take advantage of an exit clause or addendum to get out of the purchase of the home if they are not satisfied with what "as is" is. Most homes are sold with home inspection addendum, which allow for negotiation of repairs based on the results of the home inspection. The home inspector that the homebuyer employs functions in much the same way as the mechanic whom checks out a used car before you buy. A home inspector looks at a house from top to bottom, noting all the deficiencies and future maintenance issues, in an effort to help the buyer know what he or she may be getting into.

Home inspections do NOT address cosmetic concerns or the need to update older style kitchens, bathrooms, etc. Naturally, these kinds of improvements can make your house more marketable and may bring you more money, but lack of attention to the basics over the long term can be the true deal-killer. In the rush of putting a home on the market, there is very little time or opportunity to catch up on deferred maintenance.

OK--let's say your realtor calls to say that an offer has come in. You have been busy tidying up for appointments or looking for the next home to buy and now realize that you just never got around to fixing that leaking toilet, replacing the garbage disposal or having an electrician check out some funny looking wiring that your realtor was worried about. But, hooray! the offer nets you just enough money to get you into your next home so you sign the contract and feel like you are on your way! Then your realtor reminds you that the home inspection is in three days. You have to put in major overtime this week to tackle some of the basic repairs that you could/should have done by now plus get a couple of estimates from electricians. Oh well, keep your fingers crossed. OOPS, the home inspector is thorough and the buyers ask for every darn thing that was noted. It doesn't look too bad except that you must now use licensed contractors for most of the repairs according to the addendum. You start adding up the costs, wishing you had done more yourself before the inspection, and find that you are probably in for about $2000 of repairs which you now mentally deduct from the proceeds of the sale. You are thankful that you are able to work lots of overtime---just to catch up.

Help Thy Neighbor

Help thy neighbor. Nothing creates a codependency like a neighbor putting their house on the market. The neighbor is hoping to get the best return on their investment in their property, and you are hoping that the house sells fast and for a lot of money to help convince you that you have made a sound investment decision to buy a home in the area. Help your neighbor (and yourself) by keeping your own property as nice looking as possible to help entice buyers to the area by demonstrating that the community is well cared for. After all, wouldn't it be nice for the buyer to be someone who is attracted to a well kept property and surrounding area? On the converse side particular buyers will reject a property which is near unkempt properties. Today's buyers are moving more often and look seriously at the resale potential of any home that they are buying.

Curb Appeal and more

Curb appeal, first impressions, and the job interview--you've heard them all.

Curb appeal is an important element of real estate marketing. Buyers often make instant decisions, sometimes unconsciously, about a property based on what they see before they even set foot in the door. The condition of neighboring properties either adds or detracts from a home's curb appeal. Just imagine that every showing of your house is the most important job interview of its life and just like your mother told you--first impressions are important and one rarely has an opportunity to change a negative first impression.

Cosmetics, upgrades, and renovations-- what's the difference?

Cosmetics-- Remember the 70's? Well, if your house is a time capsule for the good old days of shag carpeting and foil wallpaper, then this is a term you will be hearing a lot when you put your house on the market. Sometimes a house just needs to be refreshed with a new coat of paint and maybe new carpet (or in the case of the lovely hardwood floors in Loch Raven Village---just get rid of the old wall-to-wall!)

Upgrades--This is a cross between a cosmetic makeover and renovation (or remodeling). Some of the original elements are retained (such as the kitchen cabinets) but new elements (new cooktop and oven) are added. Fresh paint and/or refinishing may be applied to existing retained elements. If the retained elements are in good condition and any refinishing or painting is carefully done, the upgrade project can be very successful.

Renovation--This is the big project that will drive you crazy while it is going on, make you fall in love with your house all over again when the job is done, and ultimately ensure that your house will be easier to sell-- if the job is done right! A simple, well thought-out and professional looking job is better than a complicated and expensive project that is not well done. Certain types of renovations give more return on the investment dollar than others so plan accordingly.

Think about your motivation. Are you planning on staying in the house for the foreseeable future? Is the return on your investment of a desired renovation not quite as important as your family's comfort and enjoyment of the results of the project? The more personalized a renovation is, the longer it will take to sell later on. You may not get back every penny you put into a certain renovation--but hey, every kid needs his or her own bowling alley in the basement! It just may take longer to find the duckpin enthusiast who happens to want to live in your neighborhood!

Or, are you a nuts and bolts kind of person who wants the place to look good and to get back most of the investment in any improvements that have been make? You'll need to check with an architect, a Realtor, do some research into what makes a house sell, which are the best improvements to make and what will be the return on investment for the type of renovation.

Best Improvements (best return on investment):

Kitchen: Whether you choose to upgrade a basically good kitchen (replace older appliances, new floor, paint, etc.) or to totally remodel---an attractive, well planned kitchen will maximize your investment.

Bathroom: Adding a second bathroom--or remodeling the ones you already have is another smart investment.

Good Improvements (good return on investment--definitely makes house more salable)

Room addition: Either finishing off unused space or adding on to a house will add value if done correctly.

Exterior improvements: Create more family space by adding a porch, deck, or patio and invest in attractive landscaping

Replacement windows: Replacing windows that are badly deteriorated with energy efficient models will reduce heating and air conditioning costs and make the property more salable---although the investment may not be returned dollar for dollar.

Pitfalls to Avoid

Don't overimprove: A house that is overimproved in relation to the value of other properties in the neighborhood will probably not recover the excess investment when sold. Buyers (and lenders) do not want to overinvest in a property where neighboring property values are less on average.

Don't choose unusual materials, colors, or architectural changes when upgrading or remodeling. The key is to use neutral colors, quality materials that are easy to clean and maintain, and make changes that are harmonious with the style of your house and the style and scale of houses in your neighborhood.