What is the best way to prepare a home for sale and what fixes and upgrades are most beneficial leading to the highest return on investment? It is a question I am asked often particularly in the San Francisco market where it seems like every home on the block is selling for way over the asking price. The right answers to “How to Sell a House” are even more important today when even small choices can mean the difference of hundreds of thousands of dollars.
When Mike and I meet you at your home to discuss value and strategies for selling your home the conversation will naturally veer towards which changes and upgrades should be made to your property in order to attract:
1. The Most Buyers
2. The Most Offers
3. The Highest Price
Property selling for the highest price when compared to similar sold properties are Maintained, Vacant, Painted, and Staged.
What if your home is not perfect? Will a remodeled kitchen, added bedroom, and remodeled bathroom be worth the Cost? This is a question of Cost vs Value. In other words will making upgrades to your property be worth the time, expense, and effort? A question to ask yourself:
1. Do You Have The Money?
2. Do You Have The Time?
3. Will The Quality Of The Work Match What Buyers Are Looking For?
Of course, you will need to have the finances to pay for any upgrades to your home. A remodeled bathroom can cost over $50,000 depending on the finishes, so having the money to complete the work is paramount. You want to be very careful when using the funds you need to live on to make improvements to your home in preparation for sale.
Time is always an issue and since nobody knows what the future holds risk is created when holding off on a sale in order to complete upgrades. If the market is great right now there is an inherent gamble in spending the time doing a remodel, which can take several months. The real estate market could be better, but it could also be worse.
In terms of quality, the question to ask yourself is whether the finishes you will choose are of a style and quality in demand with buyers. The worst thing is to spend the money on a kitchen remodel which the average buyer feels they must redo.
When buyers don’t like the kitchen remodel the cost of the kitchen will be discounted, And the cost of the NEW kitchen will be deducted from the sale price.
Mike and I have sold hundreds of homes. We have been present as countless buyers have walked through our listings. We have overheard buyers discuss in detail what they like and don’t like in a home. You would be surprised how brutally honest buyers are when touring a home for sale. It would be easy to take offense, but I truly believe offense is not the intent. Buyers are in the difficult position of making a life-changing decision. They are trying to answer a storm of questions in a very short time. Buyers who are truly willing and able to buy a home don’t have time to pussyfoot around the issues.
Not all home improvements are equal. Using years of market knowledge we can help you make choices that will improve the resale value of your home.
Every home is different with positive and negative attributes. Will adding a room downstairs be a better investment than a remodeled bathroom? It depends on the specifics of your home. The things Mike and I consider are the home's Age, Style, Location, Size, and Condition. For instance, if the living space upstairs is comparatively small then perhaps a room addition will be the better bet.
Below are a few examples of the average return on investment for upgrades in San Francisco. These are averages and are intended to be starting points from which to begin choosing which upgrades if any to make. The best way to begin strategizing is to have Mike and I come to take a look at the specifics of your home.
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Average Basement Remodel Returns 122%
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Average Bathroom Addition Returns 90%
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Minor Kitchen Remodel Returns 135%
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Entry Door Replacement Returns 95%
How To Sell A House
The more time we have to help you prepare the better. The best way to get more bang for the buck is to make upgrades slowly during the time you own your home. Remodeling your kitchen or bathroom for your own enjoyment makes a remodel truly worthwhile financially particularly if it is done in such a way that not only do you like it, but when it is time to sell, buyers like it. I have seen kitchens remodeled 15 years ago that still resonate well with buyers. I’ve also seen kitchens that weren’t worth the time, money, or effort. Let Mike and I help you make sure the choices you make today will bring the best return tomorrow.
If you are on the fence and aren’t sure if you want to invest in a remodel we can help you choose lower-cost upgrades to maximize the value of your home.
Let me send you a Free List of the average cost of different remodeling jobs in San Francisco and their typical return on investment. We will be happy to email or snail mail it to you.
To find out more about why Staging a home is important check out this article: Staging A House To Sell.
