In a Hot Housing Market Are Upgrades Still Necessary?

kitchen

So the housing market is up. You’re thinking about selling. And you know that your home will move quickly and at top dollar no matter how unremarkable it may be.

b_and_aBecause you’re savvy. You know that the inventory of existing homes on market isn’t keeping pace with demand. Why upgrade your home? Time on market is down. Prices are up. There just isn’t a reason to put any money into your home before you sell. Think again.

In the declining market of years past, sellers and their agents knew that they could potentially be losing money if they were to invest too heavily, or sometimes even at all, in preparing their home for market. A $10,000 kitchen remodel might only net $5,000 on the back end. Although there has always been an understanding that there is a need to make one’s home as presentable as possible, most sellers would do it on the cheap so as not to lose any more than they absolutely had to. Many of today’s sellers and their agents still cling to this mindset despite the fact that it is absolutely not true any more.

When the housing market is on the upswing, the return on smart home upgrades increases. And the market is up. And it’s still climbing. In the current climate, home prices are not dictated by previous sales to the degree they once were. Prices are now governed almost exclusively by a home’s desirability, it’s perceived value, and how consteted multiple offers are if they occur – essentially the amount any given buyer is willing to pay is how much any given house is worth. That same $10,000 kitchen upgrade might very well score a $15,000-$20,000 return now, while cutting a home’s time on market down to practically nothing. Factor in paint and maybe some new flooring and the chances of scoring a windfall increase dramatically. While it’s not uncommon to only see 3-5 mediocre offers on a mediocre property over the course of weeks or months on market, well prepared homes are frequently seeing those 3-5 offers in the first weekend. In the first day even. The more offers a seller receives, the better the chances of a solid sale at – or above – asking price.

Interested in maximizing your sale and walking away from the closing table with more cash in your pocket? In the current selling climate, any good agent will tell you that tasteful upgrades are worth every penny – and then some. That’s one of the big reasons we provide pre-listing consultations to our clients. Our job is to help you net the most from the sale of your home. If you’re thinging of selling but still not for a couple months – then now is exactly the time to be talking to a Realtor and laying the groundwork for a great sale.


About the author

Steve Smith
Senior broker and team leader at Irish Realty, Steve has been a top producing agent since 2005 and has represented clients in transactions totaling well over $130M in career sales. With a broad experience base that is not simply limited to single family homes, coupled with his market leading track record of success, Steve has established himself as one of the South Bend area’s most respected Realtors. You can follow Steve on Facebook and several other social media platforms.

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