Jim was finally ready to list his home for sale. He had been living in the same home for eight years. He and his wife had raised their three children there and had recently helped them all transition into college and career.
They were both ready to move into retirement which included selling their large home in exchange for a home that would provide them with the lifestyle they wanted at this stage in life. No longer did they want to spend every Saturday doing yard work and cleaning their large home. They wanted to expand their social circle, be closer to shopping and events and be more freed up to be able to travel.
Their biggest problem was wrapping their minds and motivation around getting their home sale ready. They knew there was quiet a long list of odds and ends that could use repair. The thought of strangers walking through and inspecting their home was intimidating. It was so overwhelming they kept putting off the listing appointment with their real estate agent.
They kept thinking if they could just get everything perfect then they would be ready to list. This just made them procrastinate even more. It was frustrating wanted to make the transition but being held back by what they thought was needed in order to sell.
Finally, they met with their agent. She worked out a strategy that was obtainable. It focused on getting the right items repaired that would give them the biggest advantage for negotiations. Other items were noted but not important enough to be fixed. Being that the local housing market’s inventory was still low, they could put off items that might have been more important in a different market.
Now they had a clear list of repair items and an amount to cover the rest that they were comfortable with. They could finally start to shop for their retirement home and look forward to having fun.
Like Jim and Mary, are you thinking it’s time to sell your home? If so, it’s a great time. Inventory and interest rates are low at the moment. As a home seller this means that you have less competition and can most likely get a premium sale price.
As a buyer this means that you can most likely get an amazing home mortgage loan interest rate. Even if you pay more on the sale price you will save money in the long run due to your low mortgage rate. In spite of the Covid-19 crisis, this creates a win-win in the housing market.
Sell Your Home w/ an Advantage
When planning to sell your home it is advantageous to make necessary repairs – especially items that are safety related. It’s as good idea to order your own inspection prior to listing. This will reduce surprises and stress during negotiations. It will help you determine what you are willing to potentially repair and what you’re not.
Sell Home As-Is
If you live in an older home and don’t want to make repairs then you should list your home “as-is”. Buyers will know from the beginning that you’re not willing to make or pay for repairs. If this is the hands-off approach you want to take be sure to set the sale price accordingly.
Another hand off approach is to set the sale price un-discounted at market value. Estimate the essential safety repair items and include that amount in for negotiating. This is a great way to create a win-win. You won’t have to make repairs and the buyer will receive some repair cost off of the sale price.
Strengthen Price Position
If you want a stronger price position then you’ll want to decrease negotiating wiggle room. To accomplish this you’ll need to make safety related repairs that will most likely come up on the home inspection report. Typically these include the following categories;
#1 Property Repair – Electrical
If your home is more then ten years old chances are there will be a few electrical repairs that will need to be made. Ordering your own inspection before listing is really the only way you will be able to identify what repairs these are unless you are an electrician. Since electrical repairs are a safety issue you will either want to make these repairs or provide an allowance to the buyer.
#2 Property Repair – Drainage
An important element to make sure is rock solid is your home’s drainage. This can be seen as critical to a buyer as the health of your drainage system impacts the foundation. Foundation issues can be a deal breaker even if they are not major. Buyers are extremely leary of taking on a foundation fix. Replacing or repairing your current drainage system is a good idea. Check every aspect of the drainage to make sure it is all working properly. If it’s not fix it before you list it.
#3 Property Repair – Plumbing
Make sure you don’t have any water damage or signs of previous water damage remaining in your home. Even if you experienced water damage in the past and had it fixed, if you left material in place that still has damage it will most likely come up on the inspection report and be requested to be replaced.
Be sure to take care of any and all leaks and replace past damaged material such as damaged wood or piping. When making repairs be sure to install new and improved materials. If any toilets or faucet hardware need to be repaired replace the entire unit. If you’re on a septic system be sure to have your septic pump checked and replace if needed. Same with your well pump if on a well.
Pre-Sale Safety Repair Items
In general, if something can cause a safety issue then repair or replace it before having your home listed. This will reduce the buyers opportunity to request discounts for necessary repairs. If an item is not safety related then you have a lot more negotiating power to decline the repair responsibility.
Are you ready to list your property? Do you want to maximize your market list price and sell in the shortest period of time?
