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When you decide to sell a house that desperately needs updating, you basically have two choices: Sell it as is—in its current condition without improvements—or make upgrades in the hope of reaping bigger bucks down the line.

While renovating your property will inevitably sell your home faster and for more money, listing your property as is has its perks, too—including not having to fork over lots of cash for major improvements you won't get to enjoy, and not dealing with the headaches of those improvements.

Deciding what to do can be overwhelming, but we're here to break it down for you. If want to unload your property pronto and for maximum cash, here are some things to keep in mind.

Out of house often means out of mind

If you've already purchased another home and have one foot dangling out the door, things can get challenging. Between work and family obligations—plus dreaming about decorating your soon-to-be new home—chances are you won’t have the time or energy to reimagine your old one.

If you're set on upgrading your old home to get top dollar, you'll want to find the right professional to guide you through the process, says Eric Stewart, a Realtor® with Eric Stewart Group of Long & Foster Realtors.

“Unless you find a real estate agent whose experience you can trust, someone who has a very good track record preparing homes and understands how to do the work, you’re often better off to sell the property as is, so that you don't get involved in chasing the market,” Stewart says.

Assess the potential workload, time, and money it'll take to upgrade

Get an expert opinion—or better yet, several opinions—regarding how much updating and repair work would be required to boost the home’s bottom line: Does the place just need a good scrub, or an entirely new kitchen and three new bathrooms? And more importantly, do you have the cash, the time, and the patience to see the project through?

“It’s all about whether people want to deal with renovations or not,” says Paul Morse, a licensed contractor and owner of Paul’s Carpentry Workshop in Stoneham, MA.

Morse, who's worked for several clients who wanted to spruce up a neglected home prior to listing it, suggests that sellers should identify three projects that need doing, and then consult their agent to crunch the numbers.

“Sellers should ask what their return would be if they fixed the bathroom and kitchen, for example, versus what the investment would be," he says. "Then, get three prices from three qualified local contractors.”

And don't forget to factor in the cost of owning the home during major renovations. Depending on how extensive your revamp is, you might need to find temporary housing while your property is being gutted, so add that fee to your bottom line.

Take your location—and the market—into account

If your home sits on a great lot in a sought-after loascation, buyers—especially investors—might line up in droves. When the land is more valuable than the structure sitting on it, you might be better off selling the property as is, Stewart says—there’s little point revamping a house that will probably be torn down as soon as the ink on the purchase agreement is dry.

Stewart recalls a recent listing priced at $650,000 in a hot market.

“We sold it as is for $655,000, and the seller was able to leave everything they didn't want in the house, lock the door, and say goodbye, which provided tremendous freedom for them," he says. "The work they would have had to do would never have got them the return they got by doing nothing.”

‘As is’ doesn’t mean ‘falling down’

Of course, doing some inexpensive repairs often helps sell your home faster, notes Lynn Pineda, a Realtor with eXp Realty in Southeast Florida.

“Even when buyers say, ‘I'm going to sell my home as is,’ that doesn't mean you have to present your home in shoddy light to a buyer; you still need to prepare it and make it look good,” she says. “Otherwise, you will sell for less money, or the house will sit on the market and you’ll lose money in the long run.”

If you just want to do the bare minimum and are willing to shell out a few thousand dollars, Morse suggests painting the entire home and resanding hardwood floors, if there are any. These upgrades would take about a month to do, but will make a huge difference in listing photos.

Selling your home as is won’t stop buyers from trying to negotiate

A house that hasn't been updated in years—or even decades—often attracts builders or investors looking to gut or tear everything down and construct a new home. These "fix and flip" buyers always want to maximize their profit, Stewart says, and might try to haggle down the purchase price.

Find a real estate professional who can help you maximize your profits; look for one who's had considerable success selling homes like yours, in your specific area of town. Some good questions to ask include how long comparable properties have stayed on the market before selling, what kinds of houses are selling fast and what condition they’re in, and which neighborhoods are most desirable.

Together, you can weigh what your home's worth—and negotiate a better bottom line.

Looking to sell your home? Contact The McLeod Group Network and get info on your home's value971.208.5093 or [email protected].

By: Realtor.com, Wendy Helfenbaum 

Looking to sell your home? Claim your home and get info on your home's value.

 


New year, new home renovations? Whether you're getting ready to transform your entire kitchen into a farmhouse-chic dream (hello, shiplap and apron sink!) or maybe just to add some new wood floor for the foyer, it pays to know what kind of return on investment your home renovation might deliver. According to Remodeling magazine's annual Cost vs. Value report, not all home remodeling projects deliver the same bang for the buck. Far from it, in fact.

So which projects give you the biggest return on investment these days? This year (like last), the No. 1 finisher was garage-door replacement. While not as fabulous as a full-kitchen remodel, this project essentially pays for itself, earning you a whopping 97.5% of your money back.

For this report, now in its 32nd year, researchers analyzed 22 popular home improvements in 136 markets nationwide. The magazine polled contractors on how much they charge for these jobs, as well as real estate agents on how much they think these features would boost a home's market price. They then used those figures to calculate what percentage of its cost each project might recoup—or not.

As it turns out, the price of a few key projects skyrocketed from the last year, while their value dropped, says Clayton DeKorne, chief editor of the JLC Group (which includes Remodeling magazine) and manager of the report. In other words, Americans might spend more on certain renovations and get back a lot less of the money they spent.

So what's going on?

According to DeKorne, President Donald Trump's new import tariffs on steel, lumber, and other building materials are destined to jack up renovation costs all round, leading to thinner margins on their return. Plus, as the housing market wobbles towards a peak in market prices, homeowners are less likely to renovate their homes, and real estate professionals predict that the renovation market will tighten.

"The economy is a little chaotic right now, and homeowners are holding their breath," says DeKorne. "People are very cautious to enter the market, which affects the willingness [of] people [to] pay for projects big and small."

Overall, the report found that in 2019, Americans should expect to make back 66.1% of the money they spend on renovations—a slight bump from last year's 65.8%.

And the report found that for some projects, the ROI is really worth it, especially those improvements that the whole neighborhood can see—in front of your house.

"The primary points of the evidence show us that curb appeal projects add to overall value of the house more than interior projects," DeKorne notes. "It's all about first impressions."

The chart below gives a full rundown of the top renovations, including how much they cost, their value at resale, and the percentage that can be recouped. After garage doors, the top finisher was manufactured stone veneer, with a 94.9% return on investment. Glamorous? No. Valuable? You bet.

A new project on the list this year speaks to another decidedly unsexy but invaluable trend: installing metal roofing. Compared with asphalt shingles, metal roofing costs significantly more, but offers much greater durability. And while metal roofs only yield a 60.9% ROI, DeKorne predicts their value will increase.

"This is the first year we've included metal roofing, and it's gotten a lot of interest," he says. "It's more expensive, but you'll get a better value over time than a common asphalt roof."

And if you're absolutely dying to renovate something indoors this year, DeKorne suggests keeping it in the kitchen. While most of the projects with the highest returns are exterior replacements, a minor kitchen repair cracks the top 10, with an 80.5% recoup.

"When buyers are looking at a house, they want to know the kitchen is something they can live with," says DeKorne.


A look at return on investment for popular home renovations.

Remodeling magazine

A look at return on investment for popular home renovations.

Contact The McLeod Group Network for all your Real Estate needs! 971.208.5093 or [email protected]

By: Realtor.com, Allison Underhill 

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**Disclaimer: Amy McLeod, and her team, do not initiate, process, or service mortgages.  And provide this information only as a service.  You should confirm information here with your Licensed Mortgage Lender.