Accepted real estate wisdom says that houses in good condition bring in higher prices than houses in not-so-great condition. While that is generally true, it’s possible to “over-improve” a home to the point of losing money if the return doesn’t match the investment.
Luke Rentz is a top agent on The Rentz Team in Tulsa, Oklahoma, who sells homes 72% quicker than the average agent in his market. He recommends that sellers contact an experienced agent in their area before making any repairs. “A local agent will be much more familiar with popular trends and different things that are going to get you the most bang for your buck,” he says.
Knowing what to fix — and what not to fix when selling a home — can be tricky. That’s why we compiled a do-not-fix list and threw in some advice to help you determine which fixes are worthwhile, and which are a waste of time, money, and effort.
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How to decide what not to fix when selling a house
Before getting to the list, let’s look at three initial steps to help determine how to approach repairs as you make plans to list your home.
Step 1: Consult with a top local agent before you fix anything
Ask a top local agent what — if anything —should be fixed or upgraded. They’ll know where you can make money on necessary repairs and upgrades and where to save money by leaving some projects undone.
Aim for something between “as-is” and turnkey. You want to do just enough to attract buyers, but you don’t want to pour a lot of unnecessary cash into repairs and upgrades that won’t help your home sell for more, or could inadvertently discount its value.
Rentz points out that bad repairs, or updates that don’t fit the current market, can cost you double, “You spent that money, but someone else is pre-discounting the property to fix that repair or update you did.”
Because they know the neighborhood, as well as what the market is doing, real estate agents can provide sound insight into what work has a good return on investment and what work could be just a waste of time. A great place to start is Homelight’s Top Agent Insights, a quarterly report that surveys over 1,000 real estate agents nationwide to get a pulse on current market conditions.
“The first thing I say to my sellers is, ‘Please don’t do anything to your house until I see it.’ That’s because a lot of sellers overspend on fixing and upgrading things that don’t make a difference to the home’s value,” says Carmen Bean, a top-selling agent in San Antonio, Texas, who works with over 72% more single-family homes than the average agent in her market.
In many cases, Bean will advise sellers to wait for the home inspection report and the buyer’s requests. Then you’ll know where you need to spend money. That way, you don’t “waste” money on cosmetic changes that may be needed to fix issues discovered by an inspection.
What not to fix when selling a house (do-not-fix list)
According to Homelight’s 2022 Buyer and Seller Insights Report, 23% of buyers purchased a home that was in worse condition than they expected to buy at the start of their search. That’s not a panacea for neglecting all repairs, but it’s wise to heed the advice of your local agent in determining what fixes your buyer pool will want and which ones they’ll compromise on if you don’t do them.
Some typical repairs you can usually skip include:
1. Cosmetic flaws
Many cosmetic issues are typically easy to fix: painting and landscaping, for example. Quick, affordable fixes that make a big impact may be worth doing to present a fresh, clean “face” to buyers, although they’re not on the priority list unless they detract from your home’s appearance.
However, some cosmetic flaws may be a little more involved, such as replacing old countertops in the kitchen or bath. Other issues may fall somewhere in between, such as a few cracked tiles, outdated finishes, or minor scratches on hardwood floors.
If you have the home improvement skills to complete some of these projects, you may want to do them, depending on how much time and money will be needed. “Fixing caulking that’s cracked, touching up grout, small drywall repairs, cleaning the house really well, or a fresh coat of paint on the walls to present a clean house that seems well taken care of can make a big difference,” says Rentz.
If you’re not a do-it-yourselfer, however, you could risk causing further damage or spending more money than a project is worth. Your home doesn’t need a complete makeover to sell. “Normal wear-and-tear is to be expected,” Bean points out, “so there’s no need to address most cosmetic issues unless there’s a serious, underlying problem.”
2. Minor electrical issues
If your home has old wiring, exposed wires, an outdated electrical service panel, dangling light fixtures, standard circuit breakers, or ungrounded outlets, you’ll have to address these safety hazards before listing your home for sale.
But innocuous electrical issues — loose outlet plugs, dead outlets, or a light switch that goes to nothing — may not need to be addressed. “Most of the time, the inspection report will just note that wobbly sockets are not tightened enough — and the light switch isn’t even mentioned,” Bean says.
3. Driveway or walkway cracks
HomeLight’s Top Agent Insights For New Year 2022 survey reveals that buyers will pay 7% more for a house with great curb appeal.
Normally, curb appeal includes features like freshly mowed grass, mulched flower beds, tidily trimmed shrubs, a fresh coat of exterior paint, a couple of cozy chairs on the front porch, and a nice mat by the front door.
“Some landscaping on the outside and bringing it up to date, doing a bit of tree work, or cleaning your grounds are simple fixes and updates that can make a big difference,” Rentz says.
Few buyers are so nitpicky as to let minor driveway or sidewalk cracks wreck a sale. In fact, Bean says, “Hairline cracks are very common here in San Antonio because we have a lot of soil movement, so a driveway or walkway crack isn’t going to scare a buyer off unless it’s huge enough to be a potential hazard.”
4. Grandfathered-in building code issues
Building codes evolve over time. Therefore, a house built in 1980 likely won’t meet all the current codes. That doesn’t mean you need to bring everything up to current standards to sell your home. If the home was legally constructed in compliance with the building codes of the day, it is typically considered “grandfathered-in” and does not have to meet current codes.
Nevertheless, a home inspection will note these aberrances. As Bean points out, “By law, home inspectors have to address all of the building code items in their inspection reports. But the sellers don’t have to update the house to current standards because the home is grandfathered-in.” She adds that the buyer can upgrade the house to current standards if they choose; however, many agents would advise against it.
Building code violations are common. Even if yours isn’t grandfathered in, you still may not need to correct it in order to sell.
5. Partial room upgrades
If you don’t have the time or budget to finish an upgrade or remodel, it’s probably better not to start it because it’s difficult for buyers to visualize the completed effect if you’ve left work undone. Besides, replacing only one cabinet or a couple of fixtures will only point out how badly the rest of the room needs renovating.
“A partial remodel never looks good,” Bean agrees. For example, she says it “makes no sense to put in a new vanity, but keep the 1980s linoleum floor.” When you do a partial room upgrade, you’re not adding value. It may look as if you’re trying to hide something rather than just updating it. So, you either need to do the whole room or just leave it be.
But do consider if an upgrade would bring your home up to the same level. “It’s not okay to remodel one part and have the rest of the house be lackluster,” Rentz says. “If you have a guest bathroom that’s very out of date, it might be worth it to remodel and bring the house to the same level as the rest of your home or the neighborhood.” If you already remodeled the kitchen five years ago, but your bathroom still has tile and fixtures from the 1950s, talk to your agent about local buyer expectations.
6. Removable items
Sometimes, it’s easier simply to remove worn or dated items rather than replace or update them. It can also save money. For example, according to HomeAdvisor, professionally installed window treatments cost an average of $905.
Some sellers want to take removable items with them, but it’s not always possible, even if those window treatments fit in your new home. “In Texas, sellers were free to take the curtain rods and valances, but now they are considered a part of the house,” Bean indicates.
However, if they’re not in good condition, if they’re dated, or if they make the room too dark, instead of leaving them behind, just take them down before listing the home — and don’t replace them. It’s the ultimate in quick, inexpensive prep!
7. Old appliances
If appliances are mismatched, more than 10 years old, not energy efficient, severely worn, barely functioning, broken, or missing, it can hurt your home sale. Replacing them with brand-new appliances can add value to your home, but Bean says that’s not your only option.
“If your appliances are really old, ugly, and barely working, I would advise saving money by replacing them with used appliances versus buying brand new appliances that cost thousands of dollars,” explains Bean.
If you decide to buy new, you don’t have to go high-end, top-of-the-line to impress a buyer; new, standard appliances will still add a lot to your home’s overall impression.
Seek to show potential, not perfection
Don’t be tempted to fix everything you think is wrong with your house; you’ll either lose money or price it out of the market. When you prepare your house for sale, remember that your goal is to show its potential, not to polish it to perfection.
An experienced real estate agent can help you craft your own fix and do-not-fix lists so you get the most out of your home sale. If you don’t have an agent, you can find a top-performing agent in your area with HomeLight’s Agent Match. This free platform analyzes millions of transactions and thousands of reviews to identify the right agent for you.
Writers Christine Bartsch and Lori Lovely contributed to this story.
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