Hello everyone! Welcome back to the Love Living DC Show. My name is Jennell Alexander and I serve the amazing people of Washington, DC. Today we’re talking about three key strategies to improve the overall value of your home… so that you can sell for more money… in less time.
A Real-life Example
I want to start off by telling you an interesting story about a client of mine who had his house on the market with another agent for over a year. And he was adamant that the house needed to sell for a certain price. He felt that it was within the appropriate price range, based on other properties that had sold. When I was hired to sell the home, the first thing I did was look at the house from a buyer’s perspective. Based on what we were seeing in the market, I had to show him why his house wasn’t selling.
I showed him pictures of the houses that were selling at that price point he wanted. And then I compared them to his house, and I asked, “Does your house look like this house? Does your kitchen look like this kitchen? Does your bathroom look like this bathroom?” Once he sat down and saw what the nearby homes looked like, he had a better understanding of why his property was not selling.
Home Seller Assumptions
So often, sellers assume that a prospective buyer is ready, willing, and able to invest in needed home improvement projects after the sale. The truth is, not only is this belief inaccurate, by doing this, you are greatly reducing the probability of getting a fair market value for your home. In the example that I gave you, the client expected that his house was going to get the same value that some of his neighbor’s homes received, but his house did not look showroom ready. It didn’t have the same upgrades, flooring, or bathrooms…Nothing had been done to warrant the home being sold at a premium price.
So, here’s the truth: Investing in meaningful home improvement projects on the front end will better position your home among comparable properties.
- Step One: Before you get started on any home improvement projects, consult with your local realtor. They’ll be able to give you the valuable insight on comparable properties, estimate your Return On Investment on potential improvements, and prepare a comparative market analysis on your home so that you can determine a budget for renovations. You can expect to receive the highest ROI on kitchen and bath remodels, as well as improving curb appeal!
- Step two: After you’ve taken an inventory of a handful of feasible home improvement properties, it’s time to begin interviewing licensed contractors. If you don’t have any in mind that’s okay! Your agent can always refer you to quality people in the home improvement industry.
- Step three: Get to work! Determine a timeline for your projects and when you’re prepared to list your home for sale, your realtor will be able to help you determine a solid marketing plan for your property.
Countering Buyer Objections
This 3-Step process is important. If you rely on prospective buyers to determine what it will cost to make necessary home improvement projects, they may drastically undervalue your home and submit a lowball offer. By keeping up with the latest market trends, your Realtor can advise you on the features and styles that command the highest sales prices in your area.
In my case, the client took my advice and made a few modest upgrades that really made the house shine. We were able to get it sold in just a few weeks.
Remodeling Impact Report
Each year, the National Association of REALTORS conducts a Remodeling Impact study to help homeowners understand the value they can add to their home before they put it on the market. These are general estimates for the entire country. Your local Realtor can provide you with figures specific to your community.
Insights from the National Association of the Remodeling Industry highlight what has the best payoffs when doing remodeling projects.
A fun part of the report is the “Joy Score” NAR calculated what it refers to as a “Joy Score” for each project. The score is based on the happiness homeowners reported with their renovations; the more pleased with a given project, the better the Joy Score, with the highest possible score being 10.
At this point, you may be convinced that you may need some guidance around the home improvement projects. But you may also be thinking that you have no idea where to start. If you’re thinking about making a move, I can help you through the process. Just send me a message or text me at 202-717-2276. No pressure, no sales tactics, just the help and guidance that you need!
Finally, if you’re a resident of the DC area I want to let you know that I have a free Facebook Group for members of our community! It’s called, Love Living DC. It’s a great place to join a strong tribe of Washingtonians who get weekly information about the best events and activities happening in and around town. If you’re interested in joining, click this link.
Thank you so much for joining me today, I’ll see you in the next episode!!!