Preparation for Sale - Part 2
Many times, a seller will feel like they have to completely redo the house to "prepare it for sale." New paint, new carpet, new kitchen, new fixtures, new lawn, whatever. I usually counsel against spending a lot of money improving the house just before selling it and here's why.
1. If you replace the carpet, for example, you run the risk of picking a color or type of goods that the prospective buyer doesn't care for. If the carpet is old, the buyer can be sold on the prospect of putting in the brand new carpet of their choice. But if the carpet that they don't like is brand new, they will be reticent to tear out brand new goods and instead, just will buy another house.
2. The next biggest reason not to spend a lot of money improving the house just before you sell it is - you won't get the money back and you won't even get to enjoy the new stuff because you're moving!
It is far better to be sure the house is neat and clean and in good repair than to rush around making expensive improvements. Certainly, if the paint is peeling or there are dead shrubs in the front or the carpet makes the house smell bad - fix it. Repair things that don't work. Doors that won't open or close properly, lights that won't come on, sinks that won't drain, screens that are missing or torn, and so on. Buyers expect a house to be in good repair, but leave them some room to "make it their own." If the prospects are picking out carpet, they're "moving in", a strong buying sign.
And of course, I guess I can't say it often enough - the house must be properly priced for the market. If the house needs a new roof, price that in, if it needs a new septic system, price that in. These things will turn up in the building inspection anyway and then you will have to negotiate the deal all over again and probably come out with less than you would have gotten doing it the other way.
Remember - your broker can be a great sounding board because he or she doesn't live in your house. The broker is looking at the house like a prospective buyer and can give you some great feed-back. Use it and you won't be sorry.
1. If you replace the carpet, for example, you run the risk of picking a color or type of goods that the prospective buyer doesn't care for. If the carpet is old, the buyer can be sold on the prospect of putting in the brand new carpet of their choice. But if the carpet that they don't like is brand new, they will be reticent to tear out brand new goods and instead, just will buy another house.
2. The next biggest reason not to spend a lot of money improving the house just before you sell it is - you won't get the money back and you won't even get to enjoy the new stuff because you're moving!
It is far better to be sure the house is neat and clean and in good repair than to rush around making expensive improvements. Certainly, if the paint is peeling or there are dead shrubs in the front or the carpet makes the house smell bad - fix it. Repair things that don't work. Doors that won't open or close properly, lights that won't come on, sinks that won't drain, screens that are missing or torn, and so on. Buyers expect a house to be in good repair, but leave them some room to "make it their own." If the prospects are picking out carpet, they're "moving in", a strong buying sign.
And of course, I guess I can't say it often enough - the house must be properly priced for the market. If the house needs a new roof, price that in, if it needs a new septic system, price that in. These things will turn up in the building inspection anyway and then you will have to negotiate the deal all over again and probably come out with less than you would have gotten doing it the other way.
Remember - your broker can be a great sounding board because he or she doesn't live in your house. The broker is looking at the house like a prospective buyer and can give you some great feed-back. Use it and you won't be sorry.
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