By Danni Duggan, GRI, ABR, SRS (Realtor in Portland, OR)
I cannot tell you how often I go to a listing appointment and would-be sellers tell me they are “almost ready” to go on the market except they need to [insert massive, time and money-consuming home remodeling project here]. While it is true that you want to present your home in the absolute best light possible, remodeling before listing your home, just as you are about to exit stage left, may not be in your best interest. Every home is different. And every circumstance is different. On behalf of Realtors everywhere, I implore you – consult your Realtor early on in the decision-making process. We really can help you make your remodeling dollars work for you.
Whether or not to invest in certain projects depends in part on the current condition of the home. It also depends on other factors, for instance the condition of recently sold comparable homes, the current market inventory, the market’s “hotness” factor, and local buyer trends. Believe it or not the time of year matters. Do you undertake a project now, in the middle of high selling season, only to go on the market at a time of year with fewer buyers, most of whom are bargain hunting?
Paint: The Best Bang For Your Buck
My strongest recommendation to sellers is the easiest, cheapest fix that most sellers can do themselves. Interestingly, it is also the most often resisted recommendation. Paint.
Why do people hate painting so much? That someone would consider remodeling their home before listing it without considering a simple fix like painting is amazing to me. I spend more time convincing people that the money they spend on paint will come back to them in less time on market, more interested buyers, and yes, ultimately more money.
It offers an inviting, neutral backdrop for this home’s accessories.
Painting a home’s interior, and if it needs it, the exterior, is one of the smartest investments you can make before going on the market. It freshens up the home. It gives your photos a wow factor. And it sets a neutral backdrop that puts buyers at ease and helps them to imagine themselves living there. The number of buyers who will walk away from a home because “Oh my goodness that orange room” is surprising. After all, it is only paint. But if we as sellers have one job when listing a home, it is to appeal to the largest audience of buyers.
Most sellers can handle interior painting themselves. I once had a homeowner paint his 18’ walls. Talk about industrious! But the place looked amazing and the new paint color was on-trend and conveyed a lifestyle. It spoke to the buyers.
Contemporary, warm gray that manages to be simultaneously cool.
Don’t forget the power of decluttering
I would be remiss if I did not mention one of the most valuable things you can do to your home it is to declutter it top to bottom. A vigorous decluttering may be as important as possibly remodeling your home before listing it. After a seller hires us, one of the most valuable pre-listing activities our team provides is a room-by-room analysis of what stays, what goes, what needs improving/changing, who is responsible for the changes, and what is the staging plan is for each room. I wrote a blog post years ago about Decluttering 101. It’s definitely worth a read.
Remodeling your kitchen or bath before listing your home
The question of kitchen and/or bath remodeling before listing your home requires some market analysis and a longer conversation with the seller. First and foremost, what is your timeline for moving? How long do you want to (or can you) delay that timeline? What have been the conditions of kitchens and baths of similar sold homes nearby in the market?
According to the Remodeling 2020 Cost vs. Value Report, for those of us in Portland, we might expect to see a 74.8% return on cost for a mid-range bathroom remodel, while a mid-range kitchen remodel may net between 66.8% to 88.4%. Those are terrific returns, but they are not 100%. There are no guarantees.
Often the answer of whether or not remodeling before listing your home lies somewhere in between. Sometimes (don’t laugh) a can of paint can solve many of your listing woes. Other times a smaller project is your answer – appliance replacement and maybe some new countertops or an updated backsplash. Sometimes you just need to update your bath fixtures and add a new shower surround. And sometimes, when all market conditions factors are taken into consideration, you need to do nothing.
I hate to see someone spend money on large projects only to learn after the fact (when they finally do consult a Realtor) that the comparable home pricing simply does not support the price point they want to see out of the home.
Where should I spend my money?
There is no universal answer here. This is where your trusted Realtor can act as an advisor.
If you just bought your home and you’re looking to live in it for years to come, I tell you to do whatever makes you happy. Remodeling your home should be about loving your living space and improving its functionality and its appeal. If you love vivid colors, do what you will while you’re living in the space. Go crazy. Just don’t get upset when it comes time to sell and the first thing you hear is, “We must consider neutralizing this pallet.”
For sellers, I often recommend a bright, fun, interesting front door. Whether that comes with paint or a new door depends on the condition of the existing door. Great news, though, the Cost vs. Value Report indicates that replacing your front door may net you a 90% return.
If you involve your Realtor early, you can develop a plan together that makes sense. Sometimes you need to spend your dollars on the boring and “totally unsexy” items that will be a condition for sale. For example, if you live in Portland and you are on a party sewer line, you will likely need to update your non-conforming sewer connection before you can finalize the sale of your house.
My job as a Realtor is to know current market trends, and to know (or get to know) the inventory around your home. I am a resource for you to help you understand what makes the most financial sense when you are trusting me with your most precious and often most valuable asset. I take that responsibility seriously. And I am honored to be your trusted advisor.
Team DanniPDX
Danni Duggan | Oregon Broker | Premiere Property Group, LLC | Licensed in Oregon | 503-719-2279 | danni@dannipdx.com
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References to the Remodeling 2020 Cost vs. Value Report are Copyright © 2020 Hanley Wood Media Inc. Complete data from the Remodeling
2020 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.