...what, (as a seller) should I do now? - (this post in a followup to Attention Sellers..!!!)
Let me assume that your property has real competition in the marketplace. I believe that you and your Realtor should do everything possible to make your property the one that other sellers are trying to compete with. We're working to put the old shoe on someone else's foot.
Let's eliminate the distractions. Starting with the big three:
Dirt, mould, mildew, and odors will completely kill 80% of all potential sales. Another 19% will make you an offer that will insult you. The other 1% probably can't afford to buy your property. Tobacco smoke (including odor trapped in drapes, furniture and carpets), pet odours, food smells (including compost, and fermenting wine or beer), etc., etc., etc!!!
Trash will reduce the potential selling price by 30-50%. Get rid of it - period, exclamation mark!
Clutter will reduce the selling price by 15-25%. Sort it, pack it up, get it completely out of sight - not just moved to the garage or basement. Prospective buyers look in the closets, and the basement, and the garage, and often the attic... full closets make the house look/seem smaller.
Even if it doesn't look bad to you, if your Realtor has mentioned any of these items, right now is the time to resolve them.
Next let's look at maintenance issues which represent another significant distraction. Your property could be in the best neighborhood, and be a perfect match for the buyer in all respects - but when they pull a curtain aside and find a cracked or broken window, they start wondering what else is wrong... and when they find three things they start to think about other properties.
Deal with ANY maintenance issues that you possibly can. Although you are sure you could resolve all maintenance issues for $5,000.00, a purchaser will be less certain and will discount the value of your property by at least $15,000.00. Saying you will fix something doesn't really count for much - having it fixed does.
Modernization
There is no question that you can increase the value of your property by modernizing and doing upgrades. In my experience the benefit depends upon:
correcting any problems that exist,
using materials,styles, colours that are in demand
selecting the 'right' project...
Don't Ignore Problems - Simply re-doing a bathroom or kitchen will be a disappointment if problems relating to functionality are not resolved. Awkward locations for appliances/fixtures, doors, closets, or even windows will still detract from the property and may not give the property the desired appeal.
Style - Redoing the property in your favourite colours can be equally disappointing. I would consider consulting at least three suppliers about colours and appropriate materials - AND visiting a good number of model homes/suites to see what the competition thinks is hot.
The 'Right' Project - Generally speaking, Buyers expect a property to have a good roof, good windows, and appropriate electrical/plumbing/heating systems. While buyers place value on these types of projects, they expect them and most buyers don't tend to value these projects as highly as most sellers would hope.
The right project for your property might be something entirely different. Check the local real estate advertising to see what features are being trumpeted.
Talk to me... I am very interested in your observations in this area I would like to know what you've seen work (or not work).
© 2007
David L. Potter