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Any good real estate agent will tell you that making updates before listing your home will attract more potential buyers. Likewise, many home buyers will be willing to offer a higher price on a home that shows well. Accordingly, if you don’t make pre-listing updates to your home, you are leaving money on the table.
Here are the pre-listing updates that offer the most return and can help you make top dollar for your home.
The Basics
1. Pre-Listing Inspections
When preparing to sell, most home sellers don’t think of the home inspector. However, a home inspection report can help you prioritize your home improvements. In addition, it can prevent your home sale from stalling due to the buyer’s inspection.
Major structural issues, water damage and other significant repairs can make a buyer think twice about buying your home. Unfortunately, this can jeopardize your return on other upgrades. It can also stall your sale and increase your carrying costs.
Average pre-listing home inspection cost: $400 to $600
2. Pressure Wash Your Home
First impressions matter. If the sidewalk leading up to your house is green or black with algae, that is the first and last thing buyers will see.
According to the Journal of Real Estate Finance and Economics, homes with high curb appeal sell for 7% higher than homes with low curb appeal. Homebuyers tend to assume clean and tidy homes are maintained and in good shape. Focus on the sidewalks, driveways, stairs, siding, windows and doors to get the most return on your investment.
Average pressure washing cost: $300 to $600
3. Fresh Paint
A fresh coat of paint is an easy way to boost your home’s value. Fresh paint makes an interior area look bigger and cleaner. Additionally, it can neutralize the home if you have bold colors that won’t appeal to everyone.
Fresh paint on the exterior boosts curb appeal and helps make that great first impression. In addition, peeling paint on the home’s exterior can come up on an appraisal.
Average house painting cost: $3.50/sqft
The Interior
According to an Impact Report from the National Association of Realtors (NAR), two interior upgrades return at least 100% of your investment. In other words, upon the sale of your home, you will recoup at least the total upfront cost of your investment. This is an important consideration when choosing upgrades.
4. New or Refinished Hardwood Floors
According to the NAR, the cost recovery for refinishing hardwood floors is 147%. It is 118% for new hardwood floors.
Flooring in high trafficked areas like foyers, hallways, kitchens and eating areas are the first to become worn and start looking unappealing. In today’s market, buyers are less likely to place an offer on a house that needs immediate cosmetic upgrades. Likewise, new or refinished flooring attracts more prospective buyers.
If you can’t afford to refinish the floors in the whole house, focus on the high trafficked areas mentioned above. Not only will these areas likely be in the worst condition, but they are also more visible to home buyers.
Average cost to refinish floors: $3 to $8/sqft
5. Upgrade Insulation
According to the NAR impact report, you can recover 100% of the cost of upgrading insulation. The older your house is, the more likely it lacks insulation.
Improving insulation decreases utility bills and increases comfortability in the home. As energy prices go up and Americans spend more time in their homes, insulation is more of a priority.
A pre-listing home inspection will reveal which areas need the most insulation improvement. However, determining if your walls require upgraded insulation is not easily noted in an inspection report.
Average insulation upgrade cost for an attic: $1,500 to $3,000
Note: Insulating walls will be significantly higher in price since it is a much more in-depth job.
The Exterior
Just like the interior, the NAR listed two exterior upgrades that allow you to recover 100% of the cost. Making these upgrades increases your chance for a quick sale at the highest price.
6. A New Roof
Nothing stops a real estate transaction dead in its tracks like a roof that needs to be replaced. Homebuyers may be willing to overlook simple repairs, but not old defective roofs.
Roofs protect the home from the elements. Unfortunately, a leaking roof can cause water damage and mold and ruin personal property. The good news is that you can generally recover the full cost of roof replacement when selling your home. In other words, if it costs $6,000 to replace your roof, you can list your home for $6,000 more than if you hadn’t replaced it.
Average roof replacement cost: $6,000 to $8,000
7. A New Garage Door
If your garage door is old, worn, binding, noisy or generally unsightly, your home will not stand out as well as it should. Pressure washing or painting could handle the cosmetics, but not the functionality.
Homebuyers generally get 15 to 30 minutes to view your home. They spend that time checking out bedroom sizes and operating the major components and appliances. The garage door is one of the first things they will see and use. If the garage door isn’t well maintained, the buyers may think the rest of the mechanicals are the same.
Average garage door replacement cost: $2,000 to $4,000
Bottom Line
In this real estate market, most homes are going to sell regardless. However, there are upgrades you can make to increase the value of your home and help it sell more quickly. Houses that are well maintained and show well attract serious buyers and make the entire process smoother and faster.