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How Much Work To Put On A Home Before Putting It Up For Sale?

Pamela Narang
12/06/2003

As a seller, you have several options when considering how much work to do before selling. One option is to do relatively little and sell the property in it's "as is" condition. Another is to invest time, effort and money into fixing the property up before you sell. A third option is to do a combination of the first two approaches.

Usually, buyers pay more for homes that are in move-in condition. Buyers often are overwhelmed by a home that they believe will require a lot of work even if the condition is reflected in a price. A home in great condition will usually attract more buyers than will one that doesn't show well and needs a lot of work.

Although there is a market for fixer-upper properties, it is more limited. Fixer listings sell at a discount when compared to listings that are in move-in condition. Also, fixer upper properties must have other characteristics that indicate a strong potential for price increase if the necessary improvements are made. For example, a fixer upper in a very desirable neighborhood where all the other homes are well maintained and highly valued would may fetch a good price despite its condition.

A higher sale price is not the only benefit to be derived from fixing up your home for sale. If you're doing the fix-up work, rather than the buyer, you have control over the improvements. You can shop the repair work for the best price. This can save you as much as 15 to 30 percent. Just make sure you use licensed contractors who will abide by city building permit requirements.

Often the decision of how much fix-up for sale work to do will depend on how much time you have before marketing your home. The best approach is to plan ahead so that you have as much time as possible. It can take months to get a house ready to sell, depending on what kind of work needs to be done.

No matter what kind of time frame you're working with, consult with your real estate agent before embarking on major fix-up work. Walk through your home with your agent. Make a list of all the items that should be done before you sell.

The next step is to get bids from contractors and trades people for the recommended work. Also find out about availability and how long it will take to complete the work. With this information you can fine-tune your fix-up for sale work. Once you have cost and time estimates prioritize them based on cost and added value to the sale. Ask your real estate agent for advice on which are the must-do fix ups (that could actually turn off buyers)and which would just enhance value.

Some projects may be too costly and some may not be able to be completed within your time frame. Other projects, like de-cluttering and cleaning cost practically nothing except your time and effort.



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