In most homes, a major remodel, right before you put it on the market, is a bad idea.
For whatever reason I’ve heard numerous people tell me that they need to “finish the basement” before they put their
home on the market.
I’m not sure what the hang up is with finishing the basement but unless your home is extremely undervalued right now (and I’ve yet to see one of those!) finishing the basement will not pay off financially. You will end up paying for it, not the buyers.
If you’re still not convinced call your real estate agent and ask her for recent “comps” (homes that have sold in your neighborhood for the last 6-12 months).
Homes that are currently on the market don’t count. There are plenty of people out there who are asking too much for their homes and it will only skew your opinion of things.
Study the “sold” comps to determine the average sale price per square foot. This is roughly what your home will sell for.
Look at the Days On Market figures and the number of times the price was changed for each home. I can guarantee you’ll see a direct relationship between price and Days On Market.
Even the crappiest, ugliest, most run down HUD/forecloaure/whatever will sell quickly IF THE PRICE IS RIGHT.
In fact, I just pulled comps for a woman yesterday and a home that was used as a former meth lab (that had since been cleaned up) went under contract in only a couple of weeks. The price was unbelievable, and whoever bought it may see a huge profit when they eventually decide to sell it themselves.
A major remodel will likely price you right out of your own neighborhood. If the average home in your neighborhood sells for around $250,000, finishing your basement with a state of the art surround sound theatre will NOT allow you to sell yours for $325,000. What it might do is allow the bank, after it forecloses, to sell it to some lucky stiff for $265,000.
Forget the major upgrades if you’re on the verge of putting your home on the market.
The very best things you can do, hands down, is replace the carpeting, paint, CLEAN, declutter, and fix all the things that you’ve been putting off. If you do all that, your home will look a LOT better than a significant portion of your competition.
If you’re thinking about selling your Broomfield home I would love to help out. Email (beth@bethskinner.com) me your address and I can pull comps for you. No charge, and no obligation for the service. If you decide to sell it on your own I’m happy to give you some tips on how to sell it quickly. If you decide it’s the wrong time to sell – no problem – you can call me when you’re ready!
