When you’re preparing to sell your home, it can be tempting to fix every perceived defect. But before you pull out your wallet and call a contractor, Dawson Property Management professionals suggests to carefully consider what you really need to fix and when you put your home on the market.
Chances are you’ll end up with fewer repairs and upgrades than you think. Knowing which home improvements you can put off before you sell can save you time, effort, and money.
So what not to fix when selling your Home?
Talk to your agent before you make any repairs
Ask your local agent if there are any repairs or upgrades that need to be made. They can tell you where you can make money with needed repairs and upgrades, and where you can save money by delaying certain projects.
Aim for something between as-is and turnkey. You want to do just enough to attract buyers, but you don’t want to spend a ton of money on repairs and upgrades that won’t help your home sell for more or that could accidentally lower its value.
Your real estate agent knows your neighborhood and the market, so they can give you solid insight into which jobs will give you a good return on your investment (ROI) and which ones might be a waste of time. A good place to start is HomeLight’s Top Agent Insights, a series of reports that survey more than 1,000 real estate agents nationwide to get a sense of what’s going on in the market.
Make Sure You Can Recoup Your Costs
Will the repairs, renovations, or improvements add value and provide a good ROI? It depends on the market you live in. According to the 2024 Cost-to-Value Report, the top three projects this year still rank highest in ROI. Garage door replacements have an ROI of 194%, steel door replacements have an ROI of 188%, and manufactured stone veneer has an ROI of 153%. These projects have consistently shown impressive returns over the past several years.
Sometimes a major renovation makes sense, and sometimes it doesn’t. A skilled real estate agent can assess the value of a home, run comparable home sales (comps), and calculate the ROI to determine if an update makes financial sense. To play it safe, follow the rule of thumb of no more than 10% of your home’s value on a kitchen remodel or no more than 5% on a master bathroom remodel.
According to the National Association of Realtors (NAR) report, Real Estate and Design Trends to Watch for in 2024, homeowners are more likely to stay put. For those who aren’t planning to move, the wish list includes sustainable features; an accessory dwelling unit as zoning laws change; a remodeled basement with a pickleball court, sauna, media center, and game room; a home office as remote work continues; outdoor space (both above ground and above); and AI-based technology that makes homes easier to use and more energy efficient.
Old Appliances
A listing can boast a fancy brand name or a “renovated” kitchen/bathroom/laundry room, and state-of-the-art appliances can be tempting. But their absence rarely kills the deal. And in a seller’s market, these items may not need to be upgraded or replaced,
Only when a property has been sitting idle for a long time and buyers are repeatedly getting feedback that old appliances are keeping them from making offers should a seller adjust their price or replace the appliances.
Old Windows
Of course, you want to keep your windows clean and sparkling (to better showcase your new landscaping). But don’t try to replace them. Not only is it expensive, it’s often not worth it when you’re putting your home on the market.
Old Flooring
While it’s worth investing in refinishing or resurfacing hardwood floors, don’t bother to strip away old cosmetic features like wall-to-wall shag carpeting or psychedelic patterned tile (assuming they’re in good condition). Buyers probably won’t like it, but they won’t be upset either. It’s not as big of a deal as ripping them out and replacing them. Plus, some people just love the retro look. However, sometimes new carpet can vastly improve the overall buyer perception of a home.
Don’t Replace Hardwood Floors
Hardwood floors are durable, easy to clean, and can really make your home stand out. That’s why many homebuyers love the classic look of hardwood floors. And here’s why you shouldn’t replace hardwood floors (assuming they’re not rotted or water damaged).
You’ll end up spending a lot of money that doesn’t make sense financially. Depending on the size of your home and who’s doing the work, you could end up spending anywhere from $6 to $21 per square foot on materials and labor. That’s a cost you’ll likely never recover. There are more economical ways to repair your hardwood floors.
Don’t address building code issues with existing codes
Many sellers hire a home inspector before listing their property to address repairs before they are brought up in a buyer’s inspection. It often costs less to address home repairs before an offer is accepted, and it gives sellers more time to find the right help and consider their options. But even with pre-list inspections do not be surprised if the buyer still wants to hire their own inspectors, and inspectors are motivated to find additional items to flag.
Home inspections often raise building code items. If the property is older, these items are usually not covered by the existing codes. Current building codes are constantly being updated, but property owners are not expected to continually renovate their properties to keep up.
While buyers can easily get a straight answer when they raise these inconsistencies, it’s good to be aware of them because if the code violations are under existing codes, you don’t need to remodel your home.
FAQs
Is it a good idea to replace all the old appliances in the kitchen?
No. Most real estate agents don’t recommend replacing appliances that aren’t broken.
Should I invest in landscaping and exterior improvements before I sell?
Mowing the lawn, pulling weeds from the lawn, planting plants or flowers, and giving the front door a fresh coat of paint are inexpensive ways to make cosmetic improvements without spending a ton of money on landscaping.
Can home staging replace certain repairs?
Staging a home with beautiful furniture and decorations can replace cosmetic repairs, such as new flooring or windows or an outdated kitchen, explains Northrop. However, health and safety issues such as leaks, mold, or rotten floor joists should be addressed by the homeowner before listing.
Conclusion
Don’t worry about fixing everything up when you’re ready to sell your home. Most real estate agents agree that renovations don’t always work. Instead, research the current real estate market, consult with an experienced seller’s agent, and plan to spend money on a thorough cleaning and decluttering of your home. These are two tasks that sellers should never neglect.
Never underestimate the value of staging your home to make it more appealing to buyers. This is usually cheaper than installing simple upgrades. Finally, if your home has structural issues or needs major renovations, be prepared to negotiate with buyers or consider selling your home as is.
