A civil engineer of 38 bought his first single-family house six years ago. Located in a pricey suburban enclave, the bungalow represented a major stretch for the man, leaving him no extra funds for upgrades. Now that he’s richer, he plans to sell the house and trade up to a much larger place. But he wonders what presale upgrades would make sense.
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“I made out like a bandit on equity increases during the pandemic, when my house shot up in value. That, along with a salary increase, let me dream of a new 3,000-square-foot house I intend to buy in my same neighborhood. But to clinch that trade, I really need to net strong proceeds from my current house,” the engineer says.
Recently, the man began roaming the internet in search of pointers on upgrades that could help his bottom line when he sells. He was especially intrigued by a research report on the topic from Zillow, the national real estate company.
“When certain home features or design styles are highlighted in a listing description, they serve as a signal to a buyer that a home is appealing and up-to-date. As a result, those features can help a home sell faster and for more money,” says Amanda Pendleton, a Zillow home trends specialist.
What’s more, the failure of sellers to address certain outdated features can penalize them at the closing table. Also, Pendleton notes that certain upgrades may pay owners back in some neighborhoods but not others.
To illustrate her point, she mentions the popular trend toward “tricked-out” backyards with such features as an outdoor shower, a pizza oven and a bluestone patio. While some upscale communities can support such expensive improvements, others cannot.
"While many people spend too little to make their homes salable, others spend too much on the wrong improvements,” says Sid Davis, author of “A Survival Guide for Selling a Home.”
How can you determine which upgrades will pay you back with a successful sale and which will simply waste your money? Davis says it’s wise to assess the competition prior to pouring any money into improvements.
“Go around and visit all the other For Sale houses in your immediate area as if you were a buyer. Create a checklist for the pros and cons of each home. Then make sure your home meets the neighborhood’s standards -- though without going way over the top,” Davis says.
Though expanding a home to add more square footage is an expensive upgrade that’s rarely justifiable -- except in elite neighborhoods -- some much less costly improvements could pay you back multiple times over.
Here are a few pointers for sellers:
-- Never shortchange yourself on fresh paint.
Experienced real estate agents are nearly universal in their appreciation of a newly repainted home. Painting is one of the most cost-effective improvements sellers can do.
But Davis considers it a mistake to repaint in what he calls “commitment colors.” For instance, he tells of one seller who repainted his light gray walls in bright school-bus yellow.
Davis has no financial interest in Pottery Barn, a home furnishings retailer. But he suggests that would-be sellers examine the color palette shown in the company’s catalog -- tones he believes reflect current buyer tastes.
-- Restrain yourself on kitchen improvements.
For sellers, the road to overspending is paved with good intentions, Davis says. He believes they’re especially likely to veer off course on kitchen improvements.
For instance, he says most sellers don’t need to tear out and replace their worn kitchen cabinets -- only the cabinet doors. Or, if that’s not a feasible solution, they can freshen their kitchen’s look by sanding and repainting their cabinets in a high-gloss white.
-- Change out the lighting in your bathrooms.
The multiple-bulb Hollywood-style lighting that many people still use in their bathrooms doesn’t appeal to most contemporary buyers, who want a fresher, less retro look.
Look for lighting fixtures that are more contemporary. In many cases, you can upgrade your fixtures for under $200 per bathroom.
-- Replace tired-looking carpeting.
Many sellers would rather offer buyers a “carpeting allowance” than replace worn, stained or outdated-looking carpet.
But real estate agents typically reject the idea of using a carpeting allowance, which they say undermines the sellers’ prospects for a successful sale. That’s because few buyers can envision how much better a home will look when its bad carpeting is replaced.
Can’t afford new carpeting for the whole house? Then focus on the most visible areas.
“Put your carpet dollars into the first floor where they’ll be most appreciated,” Davis says.
-- Take away any foliage that conceals your house.
Many longtime homeowners are very fond of the trees that grow in their front lawn. Even if their trees now dwarf their property -- or have grown perilously close to the house -- they’ll resist cutting them down.
“Lots of people are emotionally attached to their trees. There are many reasons for this. A tree may have been planted on a wedding anniversary, at the birth of a child or in memory of someone who died,” Davis says.
But given that curb appeal is paramount, he urges sellers to spend as much as necessary to remove any tree that hides their property. Otherwise, he says many buyers will summarily reject their property based solely on how it looks from the street.
“If you can’t see a house, you’ll never buy it,” he says.
(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)