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To Update Or Not To Update


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#1 chris v

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Posted 28 June 2013 - 01:27 PM

So we've decided to start getting our house ready to sell and move to something a little bigger.  I've been watching the market and seeing how quickly things are selling and it's brought up a question.  We had planned on updating the house a little before we sell, since everything is still original from when it was built in the 90's.  We were thinking of new countertops, sink, etc. in the kitchen.  Our old counters aren't in real bad shape but a couple tiles have cracks or are broken and have been glued back together.  The question is, is it really necessary to do the updates if things are selling so quickly?  Would we see any return?



#2 Steve Heard

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Posted 28 June 2013 - 02:11 PM

Very common question, and in my humble opinion, it depends.

 

Will someone buy your house without you updating it? Of course.

 

Will they pay the same as they would for an updated one? Not usually, but have seen it happen.

 

There's a reason that investors update homes before they sell them. They sell faster, for higher prices.

 

Will you get your money back if you update? Maybe, maybe not. What you will be able to do is price at the top of the market and get buyers who aren't worried about how much it will cost to update the place and when they'll be able to afford to do it.

 

The bottom line is that you want to do what you can, within reason, to sell your home quickly for the highest price. You have to decide what is within reason.

 

Interest rates spiked up in the past couple of weeks, and inventory is increasing. We currently have 106 homes on the market in Folsom, compared to 82 in May. Last year there were 71 listings in May and 84 in June.

 

At the same time, however, pending sales are rising too.

 

So right now, I don't think there's a shortage of buyers out there, but with increasing inventory, it may take a little longer to get them sold. Average days on market is creeping up a little. We're at 23 days now, up from 19 last month. Still, that's not very long. 

 

I think you should have a Realtor or two walk through and give you some tips on what you can do, and it's always a good idea that you go see what's on the market so you know what your competition is doing.


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#3 Darth Lefty

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Posted 28 June 2013 - 03:01 PM

When we were shopping we saw many flips that had been bought and a granite countertop slapped on the cupboards with no other obvious improvement in the whole place.  It became sort of a running gag.  We chose our place mainly due to the large number of mature trees on the property and the style of the architecture, not so much the fittings and features.


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#4 jpow5

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Posted 28 June 2013 - 03:09 PM

If I was interested in a house and it had things that were broken I would wonder what else was broken that I couldn't see.  I'd probably offer less for it thinking there'd be other deferred maintenance that would need to be done. 



#5 Steve Heard

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Posted 28 June 2013 - 03:14 PM

See? Two valid and differing perspectives.


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#6 mac_convert

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Posted 28 June 2013 - 05:01 PM

I had my house on the market for about a month and didn't have success selling it because 1. my cabinets are dark oak (out of style) 2. Elliott model homes are being built just down the street and 3. the market has hit a little bit of a hiccup. My house was built in 2005. I have hardwood laminate, Corian counter tops and dark oak cabinets. I took my house off the market when I had to release the house I was going to move into, "theoretically this weekend." Good luck. If you can do the work yourself you'll probably be able to recoup some of your expenses. The resales I have looked at lose my interest immediately if they are equipped with my current cabinets and counters. Kitchens with tile counters are an absolute no in my book.



#7 chris v

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Posted 28 June 2013 - 05:29 PM

I had my house on the market for about a month and didn't have success selling it because 1. my cabinets are dark oak (out of style) 2. Elliott model homes are being built just down the street and 3. the market has hit a little bit of a hiccup. My house was built in 2005. I have hardwood laminate, Corian counter tops and dark oak cabinets. I took my house off the market when I had to release the house I was going to move into, "theoretically this weekend." Good luck. If you can do the work yourself you'll probably be able to recoup some of your expenses. The resales I have looked at lose my interest immediately if they are equipped with my current cabinets and counters. Kitchens with tile counters are an absolute no in my book.


Would your current house be considered entry level like my current house?

#8 mac_convert

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Posted 28 June 2013 - 10:02 PM

Would your current house be considered entry level like my current house?

I live in the Chelsea subdivision in Empire Ranch so I would classify my home as a mid level starter home. The last home to sell like mine closed at $419,000 about three weeks ago. In a strange twist of events my agent contacted me today because she was contacted by an agent who has a couple who really wants to buy my house. I wish they would have started their process three weeks ago. I now have a big decision to make! :(



#9 cw68

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Posted 29 June 2013 - 08:13 AM

Spend your time and money in the kitchen. If I were you and had the ability to invest a little in my house, I would. Most people really do want a place they don't have to do anything to, but especially if it's a starter. Granite and stainless is likely the #1 thing people want in their kitchen and a lot of first time buyers don't have the cash to make changes.

#10 ambrno33

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Posted 29 June 2013 - 12:17 PM

If your kitchen needs an overhaul then I would just sell as is. As a buyer I wouldn't be anymore interested in a home that had new counters if it needed updated cabinets, flooring, backsplash etc. I would just expect to pay a lower price, knowing that I was going to need to put a lot of money into the kitchen.



#11 folsom44

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Posted 29 June 2013 - 12:56 PM

If I were you, I would only fix the obvious things that are relatively inexpensive to fix. There are a lot of cheap updates that can be done on a budget, like putting up framed mirrors in the bathroom, updating faucets, painting yourself. It all depends on how handy you are and how much time/money you want to invest. I personally would leave the big ticket items like counters or cabinets alone....it is still a sellers market.

#12 Howdy

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Posted 29 June 2013 - 02:35 PM

If your kitchen needs an overhaul then I would just sell as is. As a buyer I wouldn't be anymore interested in a home that had new counters if it needed updated cabinets, flooring, backsplash etc. I would just expect to pay a lower price, knowing that I was going to need to put a lot of money into the kitchen.

I agree. Unless you are you are going to do everything in the kitchen why bother. Its silly to go through open houses and see some put granite or some solid surface counter tops on top of builder grade oak cabinets. With interest rates and home prices on the rise the time to go is in the next 6 months. Don't spend the money on upgrades unless you are going to stay. Fix/upgrade the small stuff, make the house look nice, sell and move on. 



#13 Duke

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Posted 07 July 2013 - 09:31 PM

I agree. Unless you are you are going to do everything in the kitchen why bother. Its silly to go through open houses and see some put granite or some solid surface counter tops on top of builder grade oak cabinets. With interest rates and home prices on the rise the time to go is in the next 6 months. Don't spend the money on upgrades unless you are going to stay. Fix/upgrade the small stuff, make the house look nice, sell and move on. 

 

List and sell.  Costly improvements done at the 11th hour rarely yield major benefits to the seller.

 

Your buyers, for example, are acutely aware of their budget, the age/condition factors of the homes in their price range, their desired neighborhood, and local comps. Simply put: They're there because they're interested. 

 

Frankly, in today's Folsom market, if they don't purchase it--someone else will (presuming, of course, that it's competitively priced).   That's the bottom line. 



#14 Steve Heard

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Posted 08 July 2013 - 10:41 AM

I like the nice variety of opinions and advice here.

 

There's an old saying, 'Nothing wrong with ANY house that a lower price won't fix.'

 

Price your home to the market for homes like yours in similar condition as yours.

 

If you price it with the ones which are in better condition, you'll be wasting your time.

 

Although there are buyers at every price point and for every level of livability, and some are looking for projects or homes they can add value to, the broadest market remains for homes which are updated.

 

If you are going to update, do it right. As Darth Lefty said, when we were looking for his home, we'd find ones where the counters were replaced with shiny new granite, but the finish on the cabinets was worn off. 

 

The question for all investing in updates is 'where do I stop?', because you can get carried away with one project leading to another, so you have to set a budget and do the best you can within that.

 

FYI, there are now 125 homes on the market in Folsom, compared with 82 in May.


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#15 rip

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Posted 08 July 2013 - 11:02 AM

FYI, there are now 125 homes on the market in Folsom, compared with 82 in May.

Interesting.  Have you noticed a slow down in sales since interest rates spiked?  It does seem things I'm watching are staying on the market a bit longer.  Thoughts? 






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