Dear Pat,
Friends have pointed out about a million things we should do to our house before going on the market, but we really don’t have the time or money to do everything. What’s most important?
---Keeping it Simple
Dear Simple,
Welcome to my Most Frequently Asked Question club. While my sympathies go out to those readers who have seen much of this information in previous columns, it is true that home preparation is probably the most important aspect of the job I do for sellers. So let’s look at it from three sellers’ perspectives:
“I just want to get out.” If this is you, Simple, then I suggest you (1) mow the lawn, (2) move half your possessions to the garage or storage locker, and (3) clean the house until it squeaks. Call a good Realtor to get a market opinion for a sale on an “as-is” basis—and be prepared to spend some money anyway, if certain hazardous or unlivable conditions exist.
“I want a good price, but I can’t do everything.” This is the average seller position, and while as a listing agent I push to get the house in the best possible shape, I realize that most people really don’t have the time, money or skills required to obtain the highest price for their home. But, in addition to items 1, 2 and 3 above, this seller should make sure that (4) the mechanicals are in good working order, including roof, water heater, plumbing and electrical systems; furnace should be cleaned and tested; make sure windows operate properly. (5) All exterior wood surfaces should be free of peeling paint, stucco patched and fences put in good shape. Remember, any undone “work” that a buyer sees can become an item mentally subtracted when that buyer is trying to decide if the house is worth your asking price. Finally, and most important: (6) pull the carpeting to expose the hardwood floors; have them sanded, if necessary, even if you have to borrow the money for the job (around $3.00 sq. ft).
“I want top dollar, and I’ll do whatever it takes.” Of course, the seller who has this vision, and the time and money, will always get the best and fastest return under any market conditions. In addition to items 1 through 6 above, this seller should make sure the walls and ceilings are crack-free, woodwork gaps are filled, and walls are painted with well-chosen, designer colors. Make sure every room, even the basement, and particularly the kitchen, sparkles with an eye-popping appeal. This doesn’t require an expensive remodel so much as a fashionable “look” (say, shiny pans hanging from a sturdy ceiling rack, or a fern in a sunny corner. An older gravity furnace that works OK should still be replaced with a new energy-efficient unit. Drain tile the basement if there’s any moisture. The seller who provides real “turn-key” appeal leaves the buyer nothing significant to mentally subtract from the asking price, and creates motivation even in the toughest market.
Thursday, November 15, 2007
Monday, September 10, 2007
Forward to the Past
Dear Pat,
We got a good deal on an older bungalow last year that had been substantially remodeled in 1977. Fortunately, not much was done to “modernize” the outside, but the interior is a time warp to the Seventies: avocado fixtures and tiles in the bathroom, suspended ceiling with fluorescent panels in the kitchen, narrow ranch-style woodwork everywhere. There’s a lot more to complain about, but you get the picture. At first we thought it was charming, in a kitschy sort of way. Now we see it’s time to bring it up to date, and build in some value. Where to start?
--Brady Bunch
Dear Bunch,
Let’s start by looking at your options; you can consider them in light of your own tastes and bank account. Your first option, of course, is to do nothing at all: simply wait for buyers to value the 1970’s in the way that they’ve come to appreciate all things 1950’s. Of course, this approach may take some time, perhaps 20 or 30 years (happily, I’ll be long retired by then).
If you can’t see yourself singing the bell bottom blues for decades, Bradies, you might want to consider a more aggressive approach: mentally tear out the bathroom and kitchen. Leave no 8-track unturned, no vestige remaining of earth tones or disco chains. Now you must choose: do you remodel forward or back? 2008 or 1928? My experience tells me that buyers will reward either effort, so you have plenty of creative leeway here. But if you’re not up for seeking out a hanging sink, or an old claw foot tub, or cooking on an old porcelain 4-legged stove, or generally living with all the inconveniences that an authentic restoration would bring into your life, I’d advise you to bring these “working” rooms into the 21st century. Remember, don’t try to save money by keeping the paisley linoleum or the dark oak cabinets—it’s better to entirely remodel with cheaper materials (I hate to say this) than trying to forge a hybrid of styles that doesn’t work.
Your choices are simpler in the other rooms, Bradies. If at all possible, go forward to the past: buyers love old houses that “feel” original. Sand the floors, replace the 70’s millwork with oak boards and backband (not so hard as you might think), install antique light fixtures (or reproductions), order new craftsman-style doors (readily available from local building suppliers). Obviously, you don’t want to spend more than you can get back when it’s your turn to sell, but houses restored with quality materials and workmanship attract more buyers and do sell for higher prices. Of course, call a seasoned Realtor for market value guidance before you commit to any major expenditure. Good luck!
We got a good deal on an older bungalow last year that had been substantially remodeled in 1977. Fortunately, not much was done to “modernize” the outside, but the interior is a time warp to the Seventies: avocado fixtures and tiles in the bathroom, suspended ceiling with fluorescent panels in the kitchen, narrow ranch-style woodwork everywhere. There’s a lot more to complain about, but you get the picture. At first we thought it was charming, in a kitschy sort of way. Now we see it’s time to bring it up to date, and build in some value. Where to start?
--Brady Bunch
Dear Bunch,
Let’s start by looking at your options; you can consider them in light of your own tastes and bank account. Your first option, of course, is to do nothing at all: simply wait for buyers to value the 1970’s in the way that they’ve come to appreciate all things 1950’s. Of course, this approach may take some time, perhaps 20 or 30 years (happily, I’ll be long retired by then).
If you can’t see yourself singing the bell bottom blues for decades, Bradies, you might want to consider a more aggressive approach: mentally tear out the bathroom and kitchen. Leave no 8-track unturned, no vestige remaining of earth tones or disco chains. Now you must choose: do you remodel forward or back? 2008 or 1928? My experience tells me that buyers will reward either effort, so you have plenty of creative leeway here. But if you’re not up for seeking out a hanging sink, or an old claw foot tub, or cooking on an old porcelain 4-legged stove, or generally living with all the inconveniences that an authentic restoration would bring into your life, I’d advise you to bring these “working” rooms into the 21st century. Remember, don’t try to save money by keeping the paisley linoleum or the dark oak cabinets—it’s better to entirely remodel with cheaper materials (I hate to say this) than trying to forge a hybrid of styles that doesn’t work.
Your choices are simpler in the other rooms, Bradies. If at all possible, go forward to the past: buyers love old houses that “feel” original. Sand the floors, replace the 70’s millwork with oak boards and backband (not so hard as you might think), install antique light fixtures (or reproductions), order new craftsman-style doors (readily available from local building suppliers). Obviously, you don’t want to spend more than you can get back when it’s your turn to sell, but houses restored with quality materials and workmanship attract more buyers and do sell for higher prices. Of course, call a seasoned Realtor for market value guidance before you commit to any major expenditure. Good luck!
Wednesday, August 1, 2007
Bad Furnace Can Send Sale Up in Smoke
Dear Pat
We’ve been getting our home ready for sale, doing some last minute decorating and fixing. Now we’re concerned that our huge old gravity furnace might be a problem in selling. It looked a little scary to us when we bought the house 10 years ago, but it’s been working fine ever since. Would it pay to replace it before we sell?
--Octopus Owners
Dear Octopus,
Let’s start with the most important question, namely: will we need to replace the furnace anyway?
Many furnaces that seem to be working “fine” are actually unsafe, and subject to red-tag shutdown by the gas company or licensed heating contractors. The worst scenario for you would occur if an unsafe condition were revealed during a buyer’s inspection, after the house is sold and the price is set. Sellers usually have to replace the furnace in this situation. If the sellers refuse to negotiate this problem to the buyer’s satisfaction it could kill the sale. Of course, at this point the sellers might choose to replace the furnace and go back on the market at a higher price, with the cost of the furnace added. But in addition to the mountain of ill will already created, the sellers now face the uphill task of re-entering the market at a price thousands higher than they had asked before.
So to answer that all-important question, Octopus: you should get your older furnace certified by a licensed contractor before you go on the market, even before you call for a Truth-in-Sale-of-Housing inspection. If the heating contractor’s inspection reveals that you need to replace the furnace, then you have a chance to price your home with the cost of a new furnace added. Replacement of a big gravity furnace with a new forced air unit can cost between $6000-$8000, depending on asbestos removal required and other factors. It’s hard to know if you could recover all the cost by adding it to your sale price, but it’s a fair bet that you’d be able to recover at least half—which is, by far, the best you could hope for by renegotiating with a buyer after the price has been set (most buyers would simply insist that the furnace be replaced at the seller’s expense). Plus, a new furnace makes your home more desirable, removing a major objection and opening it to a wider market.
Please get your furnace tested as early as possible. If replacement is necessary, and cash is in short supply, there are a number of pre-sale strategies at your disposal. Call me for details. Good luck!
We’ve been getting our home ready for sale, doing some last minute decorating and fixing. Now we’re concerned that our huge old gravity furnace might be a problem in selling. It looked a little scary to us when we bought the house 10 years ago, but it’s been working fine ever since. Would it pay to replace it before we sell?
--Octopus Owners
Dear Octopus,
Let’s start with the most important question, namely: will we need to replace the furnace anyway?
Many furnaces that seem to be working “fine” are actually unsafe, and subject to red-tag shutdown by the gas company or licensed heating contractors. The worst scenario for you would occur if an unsafe condition were revealed during a buyer’s inspection, after the house is sold and the price is set. Sellers usually have to replace the furnace in this situation. If the sellers refuse to negotiate this problem to the buyer’s satisfaction it could kill the sale. Of course, at this point the sellers might choose to replace the furnace and go back on the market at a higher price, with the cost of the furnace added. But in addition to the mountain of ill will already created, the sellers now face the uphill task of re-entering the market at a price thousands higher than they had asked before.
So to answer that all-important question, Octopus: you should get your older furnace certified by a licensed contractor before you go on the market, even before you call for a Truth-in-Sale-of-Housing inspection. If the heating contractor’s inspection reveals that you need to replace the furnace, then you have a chance to price your home with the cost of a new furnace added. Replacement of a big gravity furnace with a new forced air unit can cost between $6000-$8000, depending on asbestos removal required and other factors. It’s hard to know if you could recover all the cost by adding it to your sale price, but it’s a fair bet that you’d be able to recover at least half—which is, by far, the best you could hope for by renegotiating with a buyer after the price has been set (most buyers would simply insist that the furnace be replaced at the seller’s expense). Plus, a new furnace makes your home more desirable, removing a major objection and opening it to a wider market.
Please get your furnace tested as early as possible. If replacement is necessary, and cash is in short supply, there are a number of pre-sale strategies at your disposal. Call me for details. Good luck!
Friday, July 6, 2007
Green Fences Make Good Neighbors
Dear Pat,
We love our house and enjoy our neighbors, but we’d like some privacy in back so that we don’t feel as though we’re all in the same yard. We thought of putting up a privacy fence but we haven’t seen anything we really like, and of course we don’t want to upset our neighbors. Given how expensive privacy fences are, would we be able to get our money back when we sell?
---Out in the Open
Dear Out,
Maybe once in real estate history a buyer saw a fence, whipped out his checkbook, and said, “I’ve got to reimburse this thoughtful seller for that great privacy fence,” but I doubt it. Buyers just don’t tremble for fences as they do for shiny new appliances or gleaming hardwood floors. Of course, a fence may still be a necessary investment: when the need is there, fences are like roofs or furnaces to buyers—they gotta have ‘em, gonna discount you if you don’t.
While I’m sure there are many good reasons for installing fences—especially for controlling animals—I personally prefer various types of greenery that provide a softer barrier between properties. Artfully spaced trees, shrubs and large plants can give you privacy where you need it most, avoiding a forbidding wall and off-put neighbors. This “green fence” is far more interesting and colorful, and can reach much higher than any privacy fence. At my own home, three 8-ft white pines planted just five years ago now reach over 20 feet high, affording beautiful year-round privacy.
Creating this kinder, greener barrier can add real value to a property that has a view of an unsightly building or a busy street. I once sold a house just one door from a business; because of the many plantings on that side of the property, prospective buyers rarely were concerned. In your case, Out, you might find this approach to be the least expensive investment for the best return (please see my article “Landscaping for Fun and Profit” at www.riverrealty.net). Good luck!
We love our house and enjoy our neighbors, but we’d like some privacy in back so that we don’t feel as though we’re all in the same yard. We thought of putting up a privacy fence but we haven’t seen anything we really like, and of course we don’t want to upset our neighbors. Given how expensive privacy fences are, would we be able to get our money back when we sell?
---Out in the Open
Dear Out,
Maybe once in real estate history a buyer saw a fence, whipped out his checkbook, and said, “I’ve got to reimburse this thoughtful seller for that great privacy fence,” but I doubt it. Buyers just don’t tremble for fences as they do for shiny new appliances or gleaming hardwood floors. Of course, a fence may still be a necessary investment: when the need is there, fences are like roofs or furnaces to buyers—they gotta have ‘em, gonna discount you if you don’t.
While I’m sure there are many good reasons for installing fences—especially for controlling animals—I personally prefer various types of greenery that provide a softer barrier between properties. Artfully spaced trees, shrubs and large plants can give you privacy where you need it most, avoiding a forbidding wall and off-put neighbors. This “green fence” is far more interesting and colorful, and can reach much higher than any privacy fence. At my own home, three 8-ft white pines planted just five years ago now reach over 20 feet high, affording beautiful year-round privacy.
Creating this kinder, greener barrier can add real value to a property that has a view of an unsightly building or a busy street. I once sold a house just one door from a business; because of the many plantings on that side of the property, prospective buyers rarely were concerned. In your case, Out, you might find this approach to be the least expensive investment for the best return (please see my article “Landscaping for Fun and Profit” at www.riverrealty.net). Good luck!
Sunday, July 1, 2007
Does Cash Talk?
Dear Pat
We’ve been saving for some time to buy our first house, but a recent inheritance will enable us to pay cash, if we choose. Our problem (if you can call it that) is that we plan to continue working; since payments wouldn’t be difficult, we can’t decide whether to pay cash for a house or to put the money in an investment with a yield greater than the 6.5% a mortgage would cost us. Generally speaking, could we expect the discount we’d get by paying cash to offset the interest write-off we’d get with a mortgage?
--Nice Choices
Dear Choices,
Whew! Bear in mind that I am but a simple Realtor, and that your “problem” requires the attention of a qualified investment professional who can analyze your situation based on your ages, income, lifestyle and financial goals. I would like to nibble on a point you raise about the choice of cash versus an investment yielding greater that 6.5%. It’s true that some buyers do choose to make a smaller down payment in order to keep cash working for them in higher-yield investments—but again, I urge anyone considering this option to consult with financial professionals. And I want to bite down hard on the notion that a cash buyer can expect a discount. Don’t forget, it’s all cash to the seller on closing day—whether it comes from the buyer’s checking account or their mortgage lender.
We’ve been saving for some time to buy our first house, but a recent inheritance will enable us to pay cash, if we choose. Our problem (if you can call it that) is that we plan to continue working; since payments wouldn’t be difficult, we can’t decide whether to pay cash for a house or to put the money in an investment with a yield greater than the 6.5% a mortgage would cost us. Generally speaking, could we expect the discount we’d get by paying cash to offset the interest write-off we’d get with a mortgage?
--Nice Choices
Dear Choices,
Whew! Bear in mind that I am but a simple Realtor, and that your “problem” requires the attention of a qualified investment professional who can analyze your situation based on your ages, income, lifestyle and financial goals. I would like to nibble on a point you raise about the choice of cash versus an investment yielding greater that 6.5%. It’s true that some buyers do choose to make a smaller down payment in order to keep cash working for them in higher-yield investments—but again, I urge anyone considering this option to consult with financial professionals. And I want to bite down hard on the notion that a cash buyer can expect a discount. Don’t forget, it’s all cash to the seller on closing day—whether it comes from the buyer’s checking account or their mortgage lender.
Saturday, March 3, 2007
Add Real Value as Buyer Incentive
Dear Pat,
We’re getting ready to sell our “starter “ townhouse, and of course we’re aware of the many similar units already on the market. Even though our place is in above-average condition, we need to stand out in some way to place us ahead of the pack. What do you think about offering a splashy buyer’s incentive; say, a new flat screen TV?
---Creative Sellers
Dear Creative,
I’m glad you’re thinking of ways to help your home stand out before you enter a competitive market. There is some precedent for “lifestyle” incentives unrelated to the actual real estate: I recently read about an unsold multi-million offering in California that now includes a brand new Mercedes! And I imagine that some buyers might really respond to a flat-screen TV as a visual aid to help them picture the good life in your unit. But, before you head down to Best Buy, please consider that most first-time buyers likely have already purchased a TV that satisfies them—it’s something they already know how to do. I’m not saying that a TV would be a poor incentive for every buyer, Creative; but your odds are better if you stick to “added value” that actually adds value to the real estate—or at least to the most commonly included personal property in a transaction.
Thus, for young buyers with the nesting instinct, a Maytag may hold more charm than a Sony. Remember, a practical buyer may well see an old set of appliances as a demerit, and calculate the cost of replacement (usually a high estimate) in determining the relative value of your home. Take a hard look at your appliances and see whether they could be updated with something more “splashy.” An outdated countertop and sink can often be replaced for $1000—less than most decent sized flat screen TVs—and can add real value to the property. Nothing outdated? OK, let’s say everything is virtually new in your space. If you have time before selling, look into the cost of adding a built-in feature that will please a buyer and make your home stand out from the rest. Bookshelves in one of the bedrooms, for example, can help a buyer see more uses for your space. No time? Then look for furniture that can make your home unique: a beautiful wood-paneled room divider can create a liberating sense of flexibility and utility.
So think outside the (cable) box, Creative—give buyers credit for the intelligence to appreciate the difference between real value and a marketing stunt. Create added value they can see. Good luck!
We’re getting ready to sell our “starter “ townhouse, and of course we’re aware of the many similar units already on the market. Even though our place is in above-average condition, we need to stand out in some way to place us ahead of the pack. What do you think about offering a splashy buyer’s incentive; say, a new flat screen TV?
---Creative Sellers
Dear Creative,
I’m glad you’re thinking of ways to help your home stand out before you enter a competitive market. There is some precedent for “lifestyle” incentives unrelated to the actual real estate: I recently read about an unsold multi-million offering in California that now includes a brand new Mercedes! And I imagine that some buyers might really respond to a flat-screen TV as a visual aid to help them picture the good life in your unit. But, before you head down to Best Buy, please consider that most first-time buyers likely have already purchased a TV that satisfies them—it’s something they already know how to do. I’m not saying that a TV would be a poor incentive for every buyer, Creative; but your odds are better if you stick to “added value” that actually adds value to the real estate—or at least to the most commonly included personal property in a transaction.
Thus, for young buyers with the nesting instinct, a Maytag may hold more charm than a Sony. Remember, a practical buyer may well see an old set of appliances as a demerit, and calculate the cost of replacement (usually a high estimate) in determining the relative value of your home. Take a hard look at your appliances and see whether they could be updated with something more “splashy.” An outdated countertop and sink can often be replaced for $1000—less than most decent sized flat screen TVs—and can add real value to the property. Nothing outdated? OK, let’s say everything is virtually new in your space. If you have time before selling, look into the cost of adding a built-in feature that will please a buyer and make your home stand out from the rest. Bookshelves in one of the bedrooms, for example, can help a buyer see more uses for your space. No time? Then look for furniture that can make your home unique: a beautiful wood-paneled room divider can create a liberating sense of flexibility and utility.
So think outside the (cable) box, Creative—give buyers credit for the intelligence to appreciate the difference between real value and a marketing stunt. Create added value they can see. Good luck!
Saturday, February 3, 2007
Make A Good Neighbor
Dear Pat,
We’re planning to sell this spring, and we’re busy getting things ready inside our house, but it’s the outside that concerns us. Our south side neighbor has a big elm tree in his backyard that overhangs our property. It provides lots of nice shade in the summer, but it needs trimming badly, as some of the branches are dead and others are beginning to rub on our roof. We mentioned this last year but our neighbor hasn’t done anything. We don’t want to argue with him, but we do want the situation cleared up before we go on the market. Any ideas?
---Need a Good Neighbor
Dear Neighbors,
It’s surprising how often this question comes up in various forms, in regard to neighbors’ unsightly paint jobs, or junk in their yards, or noisy dogs, or broken-down fences. There is seemingly no limit to the ways we can be hindered by our neighbors when it’s our turn to sell. On the face of it, there appears to be little we can do—but I’ve practiced, and advised using, a proactive approach that can help to give you some control over these situations. This approach can be expensive, but may be well worth the cost to many who want to sell their home more easily. First, let’s answer your specific question.
The law gives you the right to trim branches that impinge on your property or that hang over your yard. Before you do, speak to your neighbor again. You cannot expect him to pay for a complete tree trimming, but you can at least explain why you need to cut back the branches touching your house. This is a good time to propose that you help him to trim the entire tree, by lining up the tree service and paying for half the cost. The offer may get your neighbor motivated, and in the long run it can help sell your house by making both properties look well maintained. Yes, it’s an expense of sale you had not planned on, but after you’ve compiled the numbers, you may decide it’s worth it.
What I am proposing is that you pay to make a good neighbor, Neighbors. In order to sell our own houses over the years, my husband and I once had trees planted in a neighbor’s yard to help hide his decrepit garage from our view, and another time we painted a neighbor’s peeling trim. I’ve advised clients over the years to pay to clean up their neighbors’ junky yards, mow their 10-inch lawns, and, on occasion, to provide neighbors with cosmetic repairs that we agreed were cost-effective. Obviously, it’s very unusual to go to these extreme lengths—but when a neighbor’s house can stop a sale, it may well be worth it. Good luck!
We’re planning to sell this spring, and we’re busy getting things ready inside our house, but it’s the outside that concerns us. Our south side neighbor has a big elm tree in his backyard that overhangs our property. It provides lots of nice shade in the summer, but it needs trimming badly, as some of the branches are dead and others are beginning to rub on our roof. We mentioned this last year but our neighbor hasn’t done anything. We don’t want to argue with him, but we do want the situation cleared up before we go on the market. Any ideas?
---Need a Good Neighbor
Dear Neighbors,
It’s surprising how often this question comes up in various forms, in regard to neighbors’ unsightly paint jobs, or junk in their yards, or noisy dogs, or broken-down fences. There is seemingly no limit to the ways we can be hindered by our neighbors when it’s our turn to sell. On the face of it, there appears to be little we can do—but I’ve practiced, and advised using, a proactive approach that can help to give you some control over these situations. This approach can be expensive, but may be well worth the cost to many who want to sell their home more easily. First, let’s answer your specific question.
The law gives you the right to trim branches that impinge on your property or that hang over your yard. Before you do, speak to your neighbor again. You cannot expect him to pay for a complete tree trimming, but you can at least explain why you need to cut back the branches touching your house. This is a good time to propose that you help him to trim the entire tree, by lining up the tree service and paying for half the cost. The offer may get your neighbor motivated, and in the long run it can help sell your house by making both properties look well maintained. Yes, it’s an expense of sale you had not planned on, but after you’ve compiled the numbers, you may decide it’s worth it.
What I am proposing is that you pay to make a good neighbor, Neighbors. In order to sell our own houses over the years, my husband and I once had trees planted in a neighbor’s yard to help hide his decrepit garage from our view, and another time we painted a neighbor’s peeling trim. I’ve advised clients over the years to pay to clean up their neighbors’ junky yards, mow their 10-inch lawns, and, on occasion, to provide neighbors with cosmetic repairs that we agreed were cost-effective. Obviously, it’s very unusual to go to these extreme lengths—but when a neighbor’s house can stop a sale, it may well be worth it. Good luck!
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