You are planning to put your Colorado home up for sale and at the point of considering your many options, to sell ‘as is’ or to upgrade and renovate. In an article, Bankrate encourages sellers, “But don’t get carried away. Pouring too much money into the home can be a losing investment: It won’t substantially improve your house’s appeal or asking price, leaving you out-of-pocket for unnecessary expenses. So, it’s important to know where to draw the line.”
Where To Begin
Curb appeal, front entrance and paint are the most quick, dramatic upgrades any home seller can settle on. Basic wear and tear of living areas does need to be addressed first with a coat of neutral paint; it can work wonders. Fixing or updating flooring returns 147% of the expense according to the National Association of Realtors “2022 Remodeling Impact Report.”
The 2023 Remodeling Impact Report further suggests, “Most REALTORS® (92%) suggest that sellers improve the curb appeal of their home before listing it for sale. Also, the largest shares of REALTORS® recommended owners complete landscaping-related features before putting a home on the market, and those were among the top projects for which landscape professionals saw increased demand over the last year. These and other findings come according to a report released today by the National Association of REALTORS® and the National Association of Landscape Professionals.”
“REALTORS® cited the highest increase in pandemic demand for an in-ground pool addition, landscape maintenance and a new patio (all 17%). On the contrary, they saw the smallest amount of increased pandemic demand for an irrigation system installation (2%), a fire feature (8%) and landscape lighting (8%).”
Obvious that the NAR/NALP report shows homeowners benefit financially by remodeling or adding outdoor features to improve their home’s curb appeal and overall value. RE professionals can use this important updated data to help clients boost their property value. This can be beneficial even if they’re not planning to sell immediately.
When “As Is” Becomes Important
Bankrate talks about how to sell your house fast in Colorado. Though some homeowners can afford to wait there are situations that call for a quick sale. That’s when selling ‘as is’ becomes the better option.
“Selling as-is: By listing your property as-is, you are informing buyers that you are not willing to engage in protracted negotiations about what to repair: What they get is what they see. As a result, as-is sales can move faster than more typical transactions.”
Along with this option is a seller’s disclosure, “All Colorado home sellers must complete the state’s seller disclosure form. This document is a comprehensive overview of everything you know about your property that could impact its value or safety, and it’s crucial to be transparent about any previous issues or defects. For instance, if your roof suffered damage from a blizzard three years ago and required repair, you must document it in the form.”
Is there stuff not to fix? “As a general rule, it’s a good idea to focus on fixing items that may impact your home’s sale price. Beyond that, money spent on repairs and replacements may be wasted, as prospective buyers may not find the improvements necessary or even notice the work was done at all.”
If You Decide To Renovate
The Denver Post published an article on the home improvements to make before you sell, and they are all easy and accessible. Number one is deep cleaning, followed by painting, flooring, moderately priced kitchen and bath remodel. The main goal with any of the above or staging is, “Focusing on what makes your existing home attractive can help expand your buyer pool and generate more traffic. The goal is to make your home attractive to potential buyers.”
And in the end if you are considering to sell your house without any major alterations, in “as is” condition, understand that all houses are actually sold that way. The seller is never legally responsible to repair or modify any property for a buyer. The sellers that are most attracted to this option is most often, because they need a quick turnover, and want to eliminate the hassle involved in having to deal with staging. This route is usually chosen to save time and money, they know some repairs are needed but they would rather deal with disclosure to the buyer and open their book about the condition of the home, thus making the sale quicker and their own move more expedient.
Our Denver urban specialists at Katchen Company are waiting to hear from you and guide you in the right direction simply because we love being able to assist clients with the challenges that real estate transactions present. Call us!
In our Coffee Talks Video #13, Kathy and I talk about sellers and if they should renovate or sell “as is” to a flipper.
Here, we would like to present the latest Market trends report October 2023