My New Blog

I recently submitted this blog on a real estate blog site and got some interesting reponses from other realtors and real estate professionals:

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I was walking around the Country Hills area of Brea today farming the area with John (a fellow agent at RE/MAX). As we were dropping off some market update on door hangers, we noticed a house that desperately needed some TLC. John was saying that this place would need tens of thousands of dollars to be in good enough condition to sell in this market. I agreed that maybe a new garage door would make a big difference in the curb appeal, but I suggested that most buyers can barely afford $600,000 for a house now that sub-prime loans have been harder and harder to get, so perhaps a house like this would sell better if the owners just tried to sell at a lower price. However, this may have a negative impact on the market value of this beautiful area of Brea. Considering many upgrades only get about 75% return, what's the best suggestion for a property that needs some TLC? Use equity to beautify the property, or just sell it like it is at a lower price?

Responses:

6 Comments on Upgrade for curb appeal or sell at a lower price?


Hi Aaron,

It's really about what is best for the seller, and not what is best for "the neighbors". Unless the value of the property is at or very close to the value of the lot, it is best to "spruce" it up best you can. Painting has a much higher return, usually a 200% return. Not sure where you got that 75% for all improvements number, but it isn't accurate. New windows have a low return, paint has the highest return. Some modest landscaping...maybe the owner could paint and plant, reducing the cost and increasing the return.

Lots of options unless it is as or close to lot value and a builder is going to buy it and tear it down. Then improvements are a waste of money.

04/11/2007 by ARDELL DellaLoggia

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Do the cheap fixes. Paint, fixing simple broken items, do knobs, clean up yard. I would consider cheap carpet if it is really bad and a hirer priced home. We do not recommend spend a lot of money to fix up the house. Just do things that are cheap that makes it look nice. I would not do anything that cost a lot of money, most of those things do not get there return back.

04/11/2007 by Jason Vombaur

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If you don't do the basics, they buyers if you have any....are going to pound the seller into the earth with concessions, closing costs, warranties etc!

04/12/2007 by Jim Crawford

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With so much inventory on the market, if the house looks shabby, I don't think it will get much action. It is definitely necessary to make the front look appealing, or nobody will want to view the interior of the house. The seller needs to spend money to make money. By investing as little as $2,000, I'm sure the outside of the home could be fixed up. Paint the front door, new mailbox, plant some flowers/rosebushes, oh and a new doormat (yes, this actually makes a difference)! Take care of any broken steps, etc.

Also, nothing helps the inside and out like PAINT!!!! (a little staging would be great too). The seller would be wise to make this investment instead of having continual price reductions.


04/12/2007 by Maureen Graziano

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Paint! And clean up the yard. First impressions set the tone for the rest of the showing. If the house color is neutral (like NOT orange) paint the front door a complimentary red. Red doors can make the front of the house pop!

Terry Haugen - STAGE it RIGHT!


04/12/2007 by Terry Haugen

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This is where a stager would come in very handy. Is the garage door damaged? If not, it can be painted. color choice is critical and a stager can help with that. You may be able to get away with just sprucing up the yard, rather than re-landscaping.

A lot of things you can do will not require dipping into the equity. Also, you have to consider value vs. appeal. Will it increase the selling price? Maybe not, but it can get it SOLD.


04/12/2007 by Kimberly Wester - Details Staging and Redesign