By RICK GIBSON
Make Quick and Easy Improvements
Here are recommendations that will help you sell your property, and will make great talking points for you with your Realtor. An experienced and qualified listing Realtor will welcome these topics and provide you thoughtful feedback.
Cleaning: Hiring a professional to clean before and while you’re selling may be your single best investment. If your property was immaculate, people will already have told you.
Depersonalizing: Buyers should not be able to tell your political or sexual orientations. Remove clutter, most personal photos (no matter how good you looked), and anything sexual.
Lighting: Mood lighting does not sell; we are not dating the buyers. Turn on the lights, and buy more lights if it is dark. For most people, the dark can be depressing, and darkness makes buyers worry about what they cannot see.
Staging: This can be done at many levels. Professional staging is excellent but can be expensive. Some simple things like making use of the color red (in candles, pillows, and other objects) or rearranging furniture to make better use of space can help a lot.
Landscaping: Curb appeal is critical. Look at the front of your home, and ask for a landscape recommendation if you are not good at it yourself. Your home’s lawn should be inviting and healthy.
Electrical and Plumbing: In disrepair, these two can be deal killers. If you know these will come up in the inspection, repair them before selling. Even if you decide not to sell, they will remain good investments.
Often Overlooked Techniques for Selling
These are not as obvious, but if you want an edge in selling your property (and have already taken care of cleaning, basic touch ups, and are ready to go), here are some ideas your Realtor can use to sell your property:
Survey: Buyers often like to see the property lines, especially if there is not a pool and they want to add one, or make additions. So, they will usually appreciate a survey, and if yours is a waterfront property this visual and the setback look great on paper.
Floor-plan: This can be a huge asset, since Realtors sometimes use questions about arranging furniture to assess how motivated buyers may be. Because room dimensions are rare, providing them will make you stand out.
Termite and Appliance Warranties: Buyers from colder temperature locations are usually very uneasy with the concept of bugs which thrive here because it does not freeze. Having your property treated and under warranty is a great way to stay ahead of a problem. Similarly, appliance warranties are helpful and surprisingly inexpensive. Purchasing one before selling is a great technique to keep the focus away from appliances. On the other hand, offering one with the sale can imply there are existing known problems, so don’t do this unless requested or unless there are problems.
Product Manuals and Service Providers: User manuals and an organized list of service providers will demonstrate your pride of ownership, and will let buyers’ minds be less worried about potential post-sale problems.
Return on Investment (ROI) Various Home Improvements to Sell
There’s always a possibility that each home improvement will increase focus on other weaknesses, causing the dreaded snowball effect of renovations. Sometimes sellers are inclined to make improvements that are more important to them than to the buyers, and fail to account for the long-term return on their investment (ROI) for these so-called improvements.
One good way to consider these improvements is to quantify the expected ROI from making improvements before selling. If you are considering making an improvement that you will enjoy and use for a period of time before selling, then you should take into account this enjoyment value, something which is completely subjective but still very important. If it lends to your quality of life while you own the property and increases the value for selling, then it could be a fantastic investment.
Every geographic area has different considerations. For instance, a fireplace addition in Florida would not appear to make sense but in Maine it could be a great investment. A swimming pool in Florida may be great for combined enjoyment and resale but is not recommended for resale value only.
Here’s a helpful chart that provides range estimates for how much you might expect in ROI when you sell. It is not a precise science, but it can be useful before you spend money on a property you are about to sell (unless you will also be enjoying the improvement before the time comes to sell):
Florida Improvement Considered Estimated Range/Return on Investment
Neutral Paint, Interior or Exterior: 150 to 300 percent
New Flooring (to replace carpet): 75 to 300 percent
Kitchen Renovation: 50 to 200 percent
Bathroom Renovation: 50 to 200 percent
Landscape Improvement: 50 to 200 percent
New Impact Windows/Doors 50 to 100 percent
New Roof 60 to 150 percent
Swimming Pool 25 to 60 percent
Garage Addition/Conversion: 35 to 50 percent
Central Air Conditioning: 75 to 100 percent
These recommendations are only for sellers who want to maximize price and involve themselves in the process of improvement. The current condition of the considered renovation (for instance, the bathroom, kitchen, or roof) should weigh heavily in your decision of whether or not it should be undertaken. If something isn’t in conspicuous or bad condition, don’t eat into your profits unnecessarily.
Rick Gibson is a Realtor and Team Leader with Re/Max Preferred. A Certified Distressed Property Expert (CDPE) and Investment Agent Specialist (CIAS), he is Principal of Gibson Group Property Management, LLC., an appointee to Fort Lauderdale’s City CRA Advisory Board and a Board Member on the 13th Street Alliance. He has been inducted in the Re/Max Hall of Fame and has received the distinguished Coldwell Banker’s President’s Circle Award.
