Owners planning to sell their homes should understand the market is changing – and not in their favor.
Gone are the days when nearly any home put up for sale would attract a wave of interest from buyers willing to make high-priced offers without conditions. That was so 2021!
Buyers are seeing this as a rare opportunity from recent years to make offers at or below the list price and negotiate on everything from home repairs to who pays closing costs. They are also passing on homes that might need a refresh, with 71% of buyers too afraid to purchase one that needs upgrades.
In a housing market that is tipping toward the buyers’ favor, owners should put their best foot forward and showcase the home in its best light when putting it up for sale. Buyers today want a move-in ready abode that could be worthy of a spot on HGTV.
Homes designed in the “Friends” era need to be introduced to 21st-century style.
My untrained eye suggests homeowners should start with the most important part of the house – the kitchen. If the home’s hub features small-tile countertops, drop ceilings or fluorescent lighting, it’s time for a new look.
Simply put, a modern kitchen is critical to getting top dollar in today’s real estate market. It may even require gutting the old one for all new.
If you’re watching your budget, then focus on lasting impressions starting with the countertop. It sets the tone of the entire area – dark, light, warm, cool – and signals an overall taste in the home. Quartz, granite and porcelain counters are the most popular today. Also, gone are the days of the orangey “wood” cabinets; either sand down and repaint the existing cabinets or buy new. Of course, new appliances – usually sharing the same look but not necessarily the same brand – sinks, fixtures and cabinet/drawer handles are all important as well.
Walking into a home, what do you typically see first? The floor. Is it carpeted, tiled or wood? More and more, buyers are looking for hardwood floor finishes on the main level and in the basement (if there is one). Carpet is still preferred in bedrooms usually with tiled bathrooms.
In one study from the National Association of Realtors®, new wood flooring yields a 118% increase in value recovered when added to a home. Refinished hardwood floors recovered 147% of their value, according to the study. Designers suggest that the more texture – and visual characteristics – to the wood (or wood-like) surface the more value it has to buyers.
Buyers also tend to prefer the use of sustainable materials, including bamboo, cork or engineered surfaces; they’re all environmentally friendly options. In fact, new advances in vinyl flooring make it difficult to tell whether it’s real. Luxury vinyl plank – or LVP – flooring has taken the market by storm and is durable as well as priced below real wood.
Looking to stand out? Consider laying the flooring diagonally and use wide-plank varieties to give rooms a larger feel. Some homes are even featuring multi-width flooring to give the home a truly unique look and feel. Greys and blondes are the most popular colors as they are considered more complementary to other interior colors.
So many choices but, remember, the home is being upgraded more for the general buying public. Your taste may not always match what’s trending!
What else can an owner do before posting that For Sale sign? There are many options, including updated landscaping, natural-color paint (inside and out), finished basements, contemporary light fixtures, new roof, smart-home technology, replacing the water heater or adding a heat pump.
At some point, the updates should stop or you may love all of the work put into the place and want to stay!
Not sure you can afford to make an upgrade before putting the home on the market? There are options available to help delay the bills until sellers close on the sale. John L. Scott Real Estate and Curbio offer fix now, pay later concierge services. Speak with me to learn more!
The potential to make bespoke improvements to the home is vast. The key is to budget out the highest and best returns on your investment and stand out from the crowd.