Which renovations are a smart investment before selling? (Reading: sales, real estate)

[OtterTrees]

Do nothing of you are selling now. Maybe give a credit for new carpets or just replace since carpet is an inexpensive update. Don't bother with anything else. Besides, it is still damn near impossible to get anyone available to do the work anytime earlier than 3-4 monthas and that is being hopeful. I was going to do the last bit of paint and wall repair this summer and the contractors I use are booked through December.

[saibot]

The thing is, you never know whether you will get a buyer who wants "turn-key, move-in-ready" condition and would be happy with whatever generic colors and styles are fashionable at this moment, or a buyer who has their own taste and intends to repaint, change flooring, etc. before moving in.

I assume there are some of both types of buyers in most areas. Where I live, the market has been very hot (just starting to level off now), and it's been years since any of our neighbors have bothered to fix anything up before selling. Every single time, the new owners have spent a month making changes before they move in, anyway. So if it were me, I'd figure out how much money it would take to make any renovations that your realtor is suggesting, and take that much off the price. It works out to exactly the same thing in the end but is easier for you.

[matrix5k]

Originally Posted by saibot

The thing is, you never know whether you will get a buyer who wants "turn-key, move-in-ready" condition and would be happy with whatever generic colors and styles are fashionable at this moment, or a buyer who has their own taste and intends to repaint, change flooring, etc. before moving in.

I assume there are some of both types of buyers in most areas. Where I live, the market has been very hot (just starting to level off now), and it's been years since any of our neighbors have bothered to fix anything up before selling. Every single time, the new owners have spent a month making changes before they move in, anyway. So if it were me, I'd figure out how much money it would take to make any renovations that your realtor is suggesting, and take that much off the price. It works out to exactly the same thing in the end but is easier for you.

I think it's expected in New England that most houses are old and need work. The only ones in turn key condition are new constructions that go for 1.2mil+. The average buyer can't afford that.

[Beachcomber4]

In the last 8 weeks I’ve personally bought and sold several properties. I had been researching and tracking transactions since last fall.

Things changed dramatically early this winter. We all know it was a frenzy.

At the under $500k pricepoint, cosmetic fixer uppers went quickly.

Those that required skilled labor (foundation issues, possible contaminant mitigation, septic etc) did not.

Over $500k they sat, but those that looked move in ready, sold quickly and at or above ask.

The market has turned again and the frenzy has died down.

[MikePRU]

Originally Posted by OtterTrees

Do nothing of you are selling now. Maybe give a credit for new carpets or just replace since carpet is an inexpensive update. Don't bother with anything else. Besides, it is still damn near impossible to get anyone available to do the work anytime earlier than 3-4 monthas and that is being hopeful. I was going to do the last bit of paint and wall repair this summer and the contractors I use are booked through December.

This is a smart strategy given the lack of available labor.

Just FYI if you're considering doing renovations to your house before you list, there are three brokerages (at least that I know of) that offer no cost loans you can take out to renovate and/or stage your house and you pay it back at closing. I don't know the ins and outs of all three programs in detail but of course in order to get the loan you have to list with an agent associated with that brokerage. The three I'm aware of are:

-Keller Wiliams
-Compass
-Wiliam Raveis

Originally Posted by Beachcomber4

In the last 8 weeks I’ve personally bought and sold several properties. I had been researching and tracking transactions since last fall.

Things changed dramatically early this winter. We all know it was a frenzy.

At the under $500k pricepoint, cosmetic fixer uppers went quickly.

Those that required skilled labor (foundation issues, possible contaminant mitigation, septic etc) did not.

Over $500k they sat, but those that looked move in ready, sold quickly and at or above ask.

The market has turned again and the frenzy has died down.

I don't know where these properties are but most of the country is still in a seller's market. It's just not the absolutely bonkers seller's market we were in a few months ago, but demand still outpaces supply in most markets. Even in a strong seller's market, it can be difficult to sell a house that needs a lot of work especially if it's not priced appropriately.

[GeoffD]

Originally Posted by MikePRU

I don't know where these properties are but most of the country is still in a seller's market. It's just not the absolutely bonkers seller's market we were in a few months ago, but demand still outpaces supply in most markets. Even in a strong seller's market, it can be difficult to sell a house that needs a lot of work especially if it's not priced appropriately.

My town is socioeconomically mixed. The working class inventory isn’t selling. My take is that the lower the income of the buyer, the more interest rate sensitive it is. Metro Boston incomes are so high that you’re not seeing it. Down here in the economic wasteland of the South Coast, it’s already happening. Here, upper middle class housing and anything a vacation home buyer would want is still going under contract in days. There is still a big demand from out of town buyers.

I suspect “most of the country” is shifting pretty quickly since most of the country doesn’t have Boston’s high income buyers.

[Beachcomber4]

Originally Posted by MikePRU

This is a smart strategy given the lack of available labor.

Just FYI if you're considering doing renovations to your house before you list, there are three brokerages (at least that I know of) that offer no cost loans you can take out to renovate and/or stage your house and you pay it back at closing. I don't know the ins and outs of all three programs in detail but of course in order to get the loan you have to list with an agent associated with that brokerage. The three I'm aware of are:

-Keller Wiliams
-Compass
-Wiliam Raveis



I don't know where these properties are but most of the country is still in a seller's market. It's just not the absolutely bonkers seller's market we were in a few months ago, but demand still outpaces supply in most markets. Even in a strong seller's market, it can be difficult to sell a house that needs a lot of work especially if it's not priced appropriately.

South Shore. Realtors were dead wrong on pricing on all 3. One went for way over, one went for way under and one went for leas than predicted but more than expected. We were on the positive side of all transactions.

[MikePRU]

Originally Posted by GeoffD

My town is socioeconomically mixed. The working class inventory isn’t selling. My take is that the lower the income of the buyer, the more interest rate sensitive it is. Metro Boston incomes are so high that you’re not seeing it. Down here in the economic wasteland of the South Coast, it’s already happening. Here, upper middle class housing and anything a vacation home buyer would want is still going under contract in days. There is still a big demand from out of town buyers.

I suspect “most of the country” is shifting pretty quickly since most of the country doesn’t have Boston’s high income buyers.

Yeah. Market trends definitely tend to hit Boston and the area inside 128/95 last.

Originally Posted by Beachcomber4

South Shore. Realtors were dead wrong on pricing on all 3. One went for way over, one went for way under and one went for leas than predicted but more than expected. We were on the positive side of all transactions.

Well, sounds like at least you knew what you were doing even if your agent(s) didn't.

[Bunny123456]

Thanks guys - OP here. Reading through all of these replies kind of confirmed what I was thinking, which is to do nothing other than paint, clean, and declutter. While our house search has not gotten us any closer to a house, yet, LOL, (but that’s another topic for another time), the market in our current town is still sizzling hot. Of course no telling what will happen down the road but unless something shifts in a major way I don’t think a little ugly carpet or wood kitchen cabinets should deter anyone from this place.

[Beachcomber4]

Keep us posted. I’d love to know the outcome.