As this seller driven market begins to heat up, sellers are no longer competing for buyers; they are competing against other sellers. In addition to cutting edge marketing strategies, I provide thorough price analysis to put my sellers in the best possible position to attract the largest available buyer pool.
In this market, price alone may not be enough to sell your home. In many cases, making minor upgrades or improvements to your home may attract an even larger buyer pool, and contribute to your net gain. Which improvements should you make?
Remodeling.com recently released their annual cost vs. value report with some surprising insights. This regional report highlights several remodeling projects that have a high return on investment (ROI). This year, seven out of the top 10 projects are exterior remodeling. The first thing a buyer sees when they drive up to your home is the exterior; you never get a second chance to make a first impression. Buyers and buyer agents form their opinions of your home from the moment they arrive; spending a little capital on the exterior can increase your buyer pool and how they respond.
According to the survey on remodeling.com replacing your front door recoups 85.6 percent of its value. Compare this to a bathroom addition which can cost, on average, upwards of $38,000 and only recoups 47.1 percent of its value on resale, according to remodeling.com. Another exterior improvement that can yield a high rate of return is garage door replacement, which can recoup 75.3 percent of its value at resale.
Curb appeal is key here: Think paint, pruning, mailboxes… This may sound crazy, but it is certainly cheaper than a new kitchen, which the buyer may not like the style of anyway. In a transitioning market, sellers have to be aware not only of buyer trends; they also have to watch what other comparable homes are doing to make improvements. Re-working your landscaping may not have been part of your initial strategy but might give you a key advantage over other similar homes.