As a Licensed Real Estate Salesperson, in New York State, for over a decade, I’ve discovered, we, Realtors, often suggest things homeowners can do, to enhance it marketability, including curb appeal, staging, painting, etc. However, one area often inadequately discussed, is the priorities, and what areas might not make sense to put any significant resources into. This is often referred to as the Return on Investment (ROI), and requires understanding, all monies spent, to not contribute equally, in terms of how it affects the eventual selling price. Recently, a neighbor, trying to sell his house, which needed significant work, made the ill – conceived decision, to make a bunch of cosmetic improvements, rather than merely adjusting his listing price. As the adage goes, If you put lipstick on a pig, it’s still a pig, and this was certainly the case. The final outcome: He ended up selling the house at a significantly reduced price, and the purchaser is gutting it completely. Let;s review 5 things homeowners probably should not spend significant monies on.
1. Installing new kitchen cabinets/ appliances: Studies indicate, while new kitchens enhance value, the ROI is well under 100%! Therefore, rather than trying to disguise the ills, clean up the kitchen and the kitchen appliance, make it neat and clean, and have a price adjustment, rather than maintaining an unrealistic listing price.
2. Major plantings/ landscaping: While curb appeal is important, rather than investing extensively into creating a showcase, your efforts would be more wisely spent, doing some impact – planting, and seeding/ mowing. Trim the bushes, add some color, by planting some seasonable flowers or plants, and address curb appeal, rather than thinking a huge expenditure will provide a net – profit, return on investment!
3. New carpeting/ floors: Most buyers will probably have their own tastes, and will generally replace carpets, anyway. Don’t spend money on floors, as you might, if you planned to continue living in this home. Rather, re – finish, clean, and neaten floor areas.
4. Painting: Should you do full – house painting, or touch up? This applies to both inside and out. Wise sellers should focus on doors, entry – ways, around windows, and areas which look worn or shabby, and touch up localized areas, rather than the full house!
5. Bathroom overhaul: One might spend large sums of money, to create a show – room, bathroom, but, remember, your taste might not be the potential buyer’s! Make reasonably priced, cosmetic improvements, clean it up, etc, but remember the bottom line!
Homeowners should consider the net profit, when selling, rather than merely how high the selling price might be! Focus on items with the highest Return on Investment (ROI), keep modifications basic, and paint in neutral colors.