The time has come. You’re ready to move on, either to a new town, a larger home to better suit your needs or perhaps to a condo that is better suited to your family now that the kids have gone on to college. Making the decision to sell is the first step, but more difficult steps are yet to come. One of the most stressful steps is usually preparing your home to put on the market. It’s easy to get overwhelmed with everything you need to do. Which repairs need to be made to make your home more attractive? Are there any remodeling projects you can do that will put your home above others in prospective buyers’ eyes? Who can you work with to make sure that the projects you do to your home will actually accomplish your goals? We’ll help you answer these questions and more!
Before you Begin
When completing a home improvement project that you believe will dramatically improve the resale value of your home you need to consider your neighbors’ houses. If you have the nicest house in your neighborhood, but you are trying to sell it for twice as much as the appraisal value of other homes in the neighborhood, you will be disappointed.
A general guide is to not try to sell your home for more than 20% of what the surrounding homes will sell for. For simplicity, let us assume that the homes in your neighborhood are appraised at a value of $100,000. This would mean that you could expect to get about $120,000 out of your home if you make selective home improvements.
What this means for you as a homeowner is that you should seriously rethink any home improvement project that would cost more than $20,000 going by our above example. Using the above example, it is easy to see that a $30,000 home improvement project would cause you to lose money in the long run.
Before you begin your home remodeling project, you should also calculate the estimated time and financial costs. This should include the cost of materials, tools, and required local permit fees. A list of specific building codes is available with your local government and this will help you find out just how much those permit fees will actually be. If you need your project completed quickly and professionally, you may want to consider hiring licensed remodeling contractors. Contractors are often a good choice for larger projects since they know mandatory codes and permits, save time, and can keep within your planned budget. Keep in mind it is always suggested to go with reputable contractors and to get written estimates before agreeing to work with a contractor.
When choosing a contractor, get suggestions from friends, family or co-workers who have recently got work done. Make sure you check their references and sit down with the contractor and interview them for choosing. Remember, don’t go by estimates alone. Usually, the lowest bidder is usually low for a reason (perhaps he hasn’t included everything in the estimate or is planning to use lower quality materials). Your final determination should center more on reputation and how well you get along with the contractor when you meet with him.
Professionals to Work with
As with most projects, working with the right professionals is the key to making it a success. You may think that trying to do all the work yourself will save you some money, but usually the opposite is the case. Here are a couple of professionals who can help you get the most out of your home sale.
Realtor
“Once you have made a decision to sell your home, it is important to contact your realtor immediately,” suggests Don Kracke with United Coutry First State Realty. “Your realtor can educate you on what is happening in the market and help you select a marketing plan to help you obtain your objectives. This is a major decision that needs to be handled in a professional manner so that your home is presented to its best advantage.”
Sandra Harder with Woods Brothers Realty adds, “Many realtors have had experience in working with buyers. They listen to what the buyers are saying so it follows that these tips can be passed on to prospective sellers. A realtor may know vendors that can assist the seller in fixing small things and give suggestions as to how to arrange rooms and de-clutter all the areas in the home. Each seller only has one chance to meet the buyer and that chance comes from the curb to the bedroom.”
Once the home is put on the market, realtors continue to be an invaluable resource. “The realtor should have regular communication with the client about competing properties and market conditions, follow up on all showings and together discuss with the client how they will market the property,” says Deb Wagner with Home Sales by Deb. “If the desired activity on the property is not happening, together the agent and client should review whether it’s price or some condition that could be changed. There are some things that can’t be changed, but the Realtor can provide valuable consultation throughout the process.”
“There are many details to address in putting your home for market,” points out Don Kracke. “Your realtor is your reference resource. The logistics can be overwhelming at first, however, your realtor has experience in this process and can direct you to make this event an enjoyable journey. Their suggestions can really make a difference for you because it is a view from an outside perspective and there is no pressure because your realtor is on your team. You can rely on your realtor’s experience and advice. Your job is to keep the property clean and presentable and your realtor will handle the marketing. An organized marketing plan can simplify your life and reduce your stress because you know it is being done correctly and that you are doing all you can do to successfully sell your home.”
Realtors are also the best resources to help you price your home accurately. “In this market, you have to be very realistic about pricing your property,” says Sandra Harder. “You as a seller should be just as aggressive in pricing your property as the buyers are aggressive in making their offer.” Listen to your realtor when it comes to the market condition, what other similar homes are being sold for and at what price they suggest you set the price of your home.
Home Inspector
“My very best suggestion is have a whole house inspection done before you put your home on the market,” Sandra Harder suggests. “This gives peace of mind to you as a seller and suggests to the buyer that you have done all that you can to have the home ready for them to move in. The whole house inspection also eliminates any surprises when you get to contract.”
Randy King with King’s Home Inspections adds, “Often a seller will contact a home inspector for a “pre-listing” type inspection, where the inspector goes through the house and lists things that are defective, health or safety concerns, and also points out cosmetic details that could improve the chances of the house selling quickly. When the seller repairs the listed items, then a report is prepared and provided, along with a yard sign saying “Pre-Inspected by…”, and the inspection report is used as a marketing tool to help sell the house. The number one fear in buying a home is the unknown. By utilizing a pre-inspection, the fear of getting a bad house is minimized, and that hurdle to the purchase is removed.”
“The whole house inspection and any additional inspections such as radon need to be completed soon after the purchase agreement is signed by the new owners, usually 10 to 12 days,” says Rich Hamik with HomeBiz Inspection Team. “The termite inspection needs to be completed within 30 days of the closing date. The inspections, whole house, termite, etc. are usually paid for by the buyer.”
“Choosing an Inspector is largely based on referrals from other buyers and testimonials by other buyers,” continues Randy King. “A realtor or title company cannot advise on which service to use, but can provide a list of several inspectors who are frequently used, and encourage the buyer to research the inspection company on the Internet. Most good inspectors have a website, and are members of a national association, such as American Society of Home Inspectors (ASHI) or International Society of Certified Home Inspectors (InterNACHI). Most good inspectors will also have several years of experience, and average about 250 home inspections a year.”
“Choosing a quality certified inspection company is very important,” adds Rich Hamik. “Do your homework. Call and interview home inspection companies. Ask friends, check with the Better Business Bureau. Do the same kinds of things you would do before you purchase a car, television or computer. Most inspection companies have a network of people they use for your inspection, a second inspector, an HVAC company or pest company. Most of all choose someone you feel comfortable with.”
Stager
Home stagers have one purpose—to prepare your home to show it’s very best to those who come to view it. Stagers often work with realtors to help them prepare a home for the market. They can either use the furnishings and décor you already have or advice you to take out some of your belongings and bring in a few new pieces depending on the current shape of your home and how much you’re willing to change. Improvements could be as simple as taking down a few personal photos and putting that old recliner in the garage to repainting, de-cluttering and moving half of your belongings to a storage unit.
Projects to Consider
De-cluttering
Decluttering is a huge part of preparing your home for sale. People collect an amazing amount of junk over the years and you don’t need everyone who walks in seeing all of it and having it cloud their impression of your home (and it’s likely you probably don’t need to take a lot of it to your new home anyway). Consider removing all books from bookcases, packing up all your knickknacks, cleaning everything off kitchen counters, and putting essential items that you need daily in a small box that can be stored in a closet when not in use. Think of it as a head start on packing for your future move.
If you do not yet have a new home to move into, consider renting a storage unit. Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room’s purpose, yet leaving plenty of room to move around. Also, make sure you give each room a purpose. You want people to walk in and know exactly what the room should be used for. If you have rooms that you have used for storage or have never really designated for anything, considering putting in a bed and dresser so buyers can imagine it as another bedroom or perhaps haul your treadmill into it so they can picture an exercise room.
One good idea when you are doing this project is to rent a storage unit. You can put books, furniture, out of season clothing and anything else that is cluttering your home into the unit. This is an especially good idea if you are moving into a larger home as you probably have too much to fit into your current home (or you might already be buying new things for the new home) and trying to keep them in your home will make it look cramped.
Another good idea is to donate items you find when you are de-cluttering that you no longer use or want. A good rule of thumb is that if you have not used it in a year or longer, there is no reason to keep it. Donating to a place like Cause for Paws, which donates their profits to local animal charities, is a great way to not only get rid of items you no longer need, but also to help out a wonderful cause. Remember, though, that any items that are broken, stained or in otherwise poor shape should probably just be thrown out.
Anything That is Broken or Outdated
Nothing will turn a potential buyer off quicker than walking into a home where the carpet is threadbare, the toilet is leaking and the appliances are that color of green that hasn’t been popular than the ‘70s. Even if the repairs or replacements will be relatively minor for the new homeowner, it’s likely they will be much more attracted by a home that is updated and in good condition.
If repairs are minor, you might be able to get a handyman in to do most of the projects for you in a day or two. If they are more extensive, you might have to call in a plumber, electrician, flooring or painting company. This is a good place where your realtor can help out by doing a walk-through and pointing out issues they see as needing fixed.
Curb Appeal
Curb Appeal is just another term for first impression. According to Lance Roach of JL Exteriors, “The curb appeal can make a drastic difference in a potential buyer’s interest in that home or property. When they pull up to the property and see that everything is clean, nice and neat, it will intrigue the potential buyer before they even get in the door.”
John Kohler with KohlerCare explains, ”Although it is city property in one sense, nothing gives a person a better first impression of a property than the appearance of one’s curb area. Looking for addresses to identify a property that is for sale, people are likely to be looking at mailboxes, addresses painted on the curb, or house numbers. A well-maintained curb area along with the front lawn, then, is going to be among the first things that will catch a stranger’s eye. It either signals to a prospective buyer that the owner cares about their property, takes pride in the property’s appearance, most likely has the respect of and good relations with the neighbors, and that one can assume the interior of the home itself is in good condition and is worth looking at as a possible investment—or if the curb area and front lawn is not looking good, just the opposite!”
Ken Svoboda with Ray’s Lawn and Home Care adds, “Your home must present a feeling of welcome, a sense of being cared for. If shrubbery and trees are overgrown, a potential buyer will feel uneasy walking through the forest to the front door. Overgrown vegetation may be hiding some of the home’s finest features and charm.” He goes on to say, “Most potential sellers will concentrate on the interior of the house, replacing carpet, painting the walls and updating appliances and fail to realize you first need to get the potential buyer through the front door. Depending on the age or value of your landscape, don’t dismiss the option of re-landscaping the front entrance. A newly renovated landscape can do as much for ‘curb appeal’ as painting the house. Ever-blooming flowering plants, ornamental grasses and boulders are relatively new to the landscape market and will give an updated look to the house.”
“When you are preparing your home to be put on the market, first trim the necessary shrubbery, paying attention to the shrubberies’ bloom time,” Ken Svoboda says. “Prune the trees, removing branches that may be touching the house or overhanging the entrance sidewalk. Eliminate unnecessary plantings that may clutter the landscape. To give your front entrance that ‘pop’ that can draw potential buyers to the front door, add flower pots with bright colored annuals. Add a fresh layer of mulch, considering one of the several new colors of dyed mulch. Add a flowering shrub or two if the landscape is thin. Keep the lawn mowed and, if possible, weed-free. Edge the sidewalks, drives and curbs with a powered or mechanical edger for the well-manicured look.”
“The lawn should be well maintained: mowed, weed free, green and thick,” John Kohler adds. “Trees and bushes should be neatly trimmed. Dead or dying trees need to be cut down. If there are bare areas in the lawn, considering putting down sod or some sort of ground cover (mulch or decorative rock add to the appearance of a property if they are utilized in an appropriate area). One should always make certain that the foundation of the house is properly built up, not sunken, and maintained with black dirt and topped off with some sort of landscaping or turf to avoid water running down the foundation and possibly causing leaks in basements. Flower beds and berms, growing in popularity, can be a real eyesore if not well maintained, weeded, and properly rocked or mulched as needed.”
“Among things that owners often forget or take for granted are their gutters,” points out John Kohler. “Gutters should be cleaned out—which is another indication that the home has been well cared for. Gutters that are obviously plugged with leaves and sticks sticking out of them send all the wrong signals to prospective buyers about the owner’s care of the house and property.”
“There are many different projects that you can do to increase your curb appeal, but some of the most common to make your property stand out from the crowd are siding, painting, windows, roofing and landscaping/hardscapes,” explains Lance Roach. “By doing any or all of these projects can make a dramatic difference to the potential buyer and help the property sell quicker. If you are a do-it-yourselfer, you can do a lot of simple improvements for next to nothing such as painting, planting, cleaning up and even more depending on your know-how and confidence in doing it right. If you don’t have the time or knowledge, then I would suggest hiring a professional to provide the services for you.”
“Replacement windows today with their vinyl and aluminum exteriors will give your home a great curb appeal due to smooth and symmetrical lines,” says Jeff Wathen with JDs Windows and Doors. “Most come with many decorative glass options and grid patterns as well, so there are many options to meet or exceed your needs. A suggestion I have for those who are putting their homes on the market is to make sure you keep the warranties for any windows or siding work you have done so that you can transfer them over to the new owner if applicable as most home improvements come with a transferable warranty.”
“New paint is another great way to increase your curb appeal,” states Brad Waddell with N2 Painting. “Potential buyers want to see a nice, clean look to the exterior and interior of your home and a fresh coat of paint can achieve this with not a lot of cost or work. New paint also can increase your resale value.”
“Don’t be afraid to call in the help of a professional,” echoes Ken. Svoboda “Several offer-free estimates or charge a small amount as a consultant for you to do the work yourself. You should also take advantage of the end of season sales on plants and garden decorations.”
Backyard Updates
“Outdoor living is huge across America,” states Linda Heiman with Reimers Kaufman. “People are spending more time in their back yards and taking ‘staycations’. Updating your back yard with a functional patio is a great way to start. Freestanding walls give the area the feel of a room and provides extra seating. Fire pits and fireplaces are becoming more popular and create an inviting atmosphere. Bubbling boulders or water features give an area that extra design element for relaxing. With the economy, more people are choosing to stay in their homes longer. Invest in an area you can enjoy now while increasing the value of your home when you do choose to sell it.”
Kitchen and baths
Kitchens and baths usually rank high on rooms potential buyers will look at and base a decision on when it comes to looking at homes. If your kitchen or bath is outdated, not in good shape or just unattractive, you might want to consider remodeling them before putting your home on the market. A kitchen or bath update can be as simple as a coat of paint or as elaborate as completely new appliances, new floors, new cabinets and more. If you are planning on a large remodeling project, make sure you work with a professional who has a lot of experience in kitchens and baths and who can help guide you to the right projects to increase your resale value.
“We see most homeowners considering the renovation of their kitchen and/or bathrooms when looking at putting their home on the market,” says Rachelle Miller with Elite Kitchens & Flooring. “There are simple and minimal face lifts such as a new countertop and tile backsplash along with new sink and faucet and a coat of paint on the walls. When assisting our homeowners in making informed decisions, we educate them on products and innovations that are going to be assets to the environment while still allowing them to stay within their budget. When it comes to budgeting for a kitchen remodel, we gauge the pricing that the homeowner should stay within to achieve the best gain on their investment, which is between 10-15% of the value of the home. For example, if the house is worth $100,000, then the homeowner should expect to spend around $10,000-$15,000 as a general rule.”
Artwork and photos
What do you currently have on your walls? If your décor consists of outdated artwork and personal photos, you should probably consider doing some redecorating before you begin showing your home. Potential buyers want to be able to picture themselves in your home and they usually can’t do this as well if you have a number of personal photos up. It’s better to have up eye-catching artwork in beautiful frames that are as universally pleasing as possible. Make sure the colors work with the color scheme in your home so that everything blends seamlessly and makes potential buyers feel like they could live in your home. Any items that are a little strange or extremely unique should probably be put in storage until you’re ready to move into your new home.
After the sale
You’ve done it! Your home is finally sold! If things have worked out well, you already have a new home to move into and now is the time to call in a moving company to help you make the move as quickly and painlessly as possible. This is another area where people often think they can save money by doing it themselves but often find that they would have been better off working with professionals. Not only do you run the risk of breaking your possessions, but you also have to worry about injuries (do you or your spouse really know the proper way to move a refrigerator?), not to mention the time, energy and frustration that moving always entails. Wouldn’t you much rather walk into your new home and find that everything has been moved and put in the proper rooms?
Working with a moving company is the easiest and most reliable way to get everything moved with very little work on your part. “When you take the time find and hire a reputable moving company, you can remove a lot of the stress on moving day,” says Jason Christenson with Two Men And A Truck. “You will know that your belongings are being moved by trained, professional movers. In addition, you will have some recourse if there is damage to your items or to your home on moving day. You’ll likely be on your own if the friends you paid to move you with pizza and beer drop your new flat screen TV.”
“I would suggest contacting at least two or three different companies before you make a decision on which to hire,” continues Jason Christenson. “Movers in Nebraska are regulated so the basic structure is the same for all companies, but the rates may vary. Also, don’t make your decision based on price alone, pay attention to how they deal with you on the phone or in your home if they come out to give you as estimate. If they are difficult to deal with before you’ve even hired them, you can be sure they will be difficult to deal with if you have any problems such as damage to your property. If you have friends or family who have moved recently, find out who they used and what kind of experience they had. I would always recommend booking your moving company as far in advance as you can in order to get the day and time that you want. That being said, we understand things sometimes change unexpectedly and will always do our best to work with a customer when that happens.”
“In Nebraska, local moves are charged for by the hour,” Jason Christenson concludes. “Anything you can do in advance to save time will also save you money. This would include things like disconnecting electronics and appliances, disassembling beds and generally being ready to move when the day comes.”
Preparing your home to put on the market can be a very stressful and time-consuming process and can sometimes cloud the joy and excitement that goes along with looking for a new home. However, if you work with the right people and take the advice of experts on how to best show your home, you can make the process a relatively short and painless one.