I have spent a lot of time thinking about and making content on the subject of upgrading your home before selling. The clear answer is YES 95% of the time.
Think about it like this, if you could trade your $20 bill for a buyers $100 bill, would you do it?
“Yes, but it depends” is the answer I hear most and I get it. People don’t want to spend a bunch of money fixing up a house only to have the new buyers rip it all out and put their own stuff in.
This thinking misses several huge factors and I will try to be brief but this is important because there is a huge difference in the selling price of homes based on how they are sold and part of that process is deciding what if any upgrades to make. Here are the factors to consider when making this decision that you might not have thought about:
#1. Buyers Are Broke – Most buyers don’t have any money after buying your house. This is America… Ask yourself how many people including yourself, bought a house at top dollar then ripped out all the new flooring, paint and upgraded kitchen because it wasn’t your taste?
#2. People Make Decisions Based On How They Feel – When most people buy things, they base their decision on their feelings. Their feelings are driven by what they see and what they see is either how beautiful or ugly your house is. You want buyers to feel like they are willing to pay whatever the price is in order to get your house.
#3. People Think Upgrades/Repairs Cost 6X Their Actual Cost – In the 6X effect video below I explain how buyers estimate repairs and upgrades. They walk around and in their head take that money off your sales price. It’s true and it cost sellers ten’s of thousands of dollars.
#4 People Don’t Want To Deal With Contractors – Another thing to consider is that buyers might not be from the area and don’t know all the electricians, plumbers, kitchen and bathroom contractors like you do. They have to move in and then deal with finding a reputable company, having strangers in their home, living in a construction site, and hopefully not getting ripped off.
#5 Price Is A Function Of Supply & Demand And 50% Of Buyers Won’t Even Consider A “Fixer Upper” – I have helped buyers buy hundreds of houses and I cant tell you how many times I hear buyers tell me they only want “move in ready” because of all the factors above. The fewer buyers considering your home the lower the profit it’s basic economics.
So What Is The Solution?
I believe that it’s my job to show you all the ways you could and should get your home ready to sell for top dollar and the way I do that is to hire a professional decorator to come to your home and make recommendations.
Then you and I can sit down and determine what things will get you the most bang for the buck and if and when you decide to make upgrades I have contractors who will do them for a small fraction of what most people pay. It’s one of the ways I help my clients get top dollar for their home in todays market!