Expert: Jessica Bryan - 6/19/2006

Question
What do advise regarding making personal cosmetic repairs to a home before selling?  What kinds of upgrades or repairs make a home appraisal higher?

Answer
Hello;
Your question is a good one.  I have often listed homes where there were small cosmetic problems such as scuffs on the walls, blinds that are broken, cracked backplates on electrical outlets, doors that don't close well, dripping fawcets and dirt build up on plumbing fixtures and floors.  Overall it gives the impression of a home that has been poorly maintained.  The potential buyer tends to offer a lower price on that home. The thinking is (even if it is subconscious) "if there is need for repair on the things I can see, what about all of the things I can't see?"  As a result, the offer may have lots of repair contingencies as well as a lower price. Conversely, when everything sparkles and looks well-maintained, the buyer is more apt to make a higher offer thinking that it will take less work and money to make the home their own.  If you think about two homes both being about the same size and price, (one being in need of some cosmetic work and one being move-in perfect) if the buyer likes both homes equally, which one are they more likely to make an offer on?  Now if both homes were the same price, which one might they make a lower offer on thinking that there would be some extra expense to the buyers once they moved in?

As for upgrades...the home might appraise higher with upgrades done to the kitchen and to the bathrooms.  That includes updated appliances and plumbing fixtures.  However, most people don't get their full value out of either of these upgrades. Cosmetic upgrades probably won't make much of a difference on an appraisal unless there is a substantial difference such as installing granite counter tops, wood floors, expensive fixtures, etc. However, there are changes that will make a difference in the sale and purchase price of the home. The most important upgrades are fresh paint and new carpet. These seem to get the most out of the cost vs. resale value.  If either of these need redoing I suggest you find a low-price carpet and inexpensive paint to freshen things up. The biggest mistake people make is to present a home for sale with the thought that they will give a carpet and/or paint allowance. The thinking is for the buyers to choose their own paint and carpet.  However, the home often sits on the market for alot longer and when an offer finally does come in it is lower than the cost would have been to replace the carpet and paint.  Another area that can be helpful is to have some flowers, and planting on the outside of the home.  Curb appeal can be very important on the buyers assessment of the home's value.  Again, even if they love the inside they will discount the price knowing that they must fix up the outside.

I hope that this helps you in deciding what you must do to your home before placing it on the market.

Sincerely,
Jessica Bryan
Managing Broker
House to Home Realty Services