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Don't Spend Big Money on Improvements
A good rule of thumb for improvements is if it costs you $2,500 to update your bathroom, you should see a market gain of $10,000 to justify the improvement. The philosophy to not spend big money on improvements to sell your home is really geared toward those major improvements that are purely cosmetic. "I recently had clients who had a home that needed in excess of $20,000 in updates to get in line with the competition in the area that was attracting the higher prices," said Jared Hoylo, Realtor at Remax. "The homeowners knew if they did the repairs they wouldn't get an $80,000 increase in value, and they elected to simply list below the competition by $10,000. The home sold within 25 days." With the price of improvements, the homeowner must consider the disruption to the household, cost overruns, and the general headache of dealing with the remodeling process. If a seller knows that an item is on its last leg, get bids from contractors before listing your home and be prepared for buyers to ask for a repair as a result of the inspection. The buyer always thinks improvements cost three times as much as they really do. These are the most bang-for-the-buck home improvement projects out there.
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Don't Disregard Curb Appeal
Having a good landscape contractor in your back pocket can help sellers out when preparing the home for sale. Mulching, bush trimming, tree branch removal, and simple plantings can go a long way in setting your home apart from the competition. These projects are generally affordable and can be done by the DIY weekend warrior as well. "I recently had a client reach out to me late last summer when they knew they were going to be moving the following spring," said Hoylo. "We had the professional photographer come out and snap a few exterior photos for our listing that was going to be active during January. These home pictures went a long way for the seller to convey what they had for plantings and curb appeal during the dead of winter." Here are some ideas on how to improve your curb appeal for selling your home.
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Don't Ask for More Than Your Home is Worth
When residential real estate inventory is low, the market is hot for sellers. However, that does not mean buyers are going to overpay for a home. Too often some sellers treat the real estate process like they are trying to sell something online, and will leave room to negotiate. "A home that is priced correctly regarding market history will receive an offer in the normal amount of time," said Hoylo. "Correct pricing allows the market to dictate how much the home is really worth by creating the possibility of multiple offers. The seller who shoots for the moon and asks for more than their home is worth ultimately loses out on ready, willing, and able buyers. The home can then become stigmatized as over priced and buyers may choose to skip the property outright. Plus: Check out these 20 ideas to make your home sell faster.