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Tuesday, July 5, 2011

Should I Fix Up My Home

We thought this was a great article written by Elizabeth Weintraub. She states that in today's market, fewer buyers want fixer upper houses, and those that do want a deal. Buyers who gravitate toward fixers are those who either don't qualify to buy a more expensive home or those who want to make a profit by fixing the house themselves.

Fixer-upper buyers will discount the price of the home to allow for the repairs plus, for the inconvenience, a bit more. Say, a home is worth $100,000 fixed up, but it needs a new roof. A new roof might cost $10,000. A buyer will most likely not offer $90,000 for this house. Otherwise, they could buy an identical home with a new roof for $100,000 and avoid the hassle.

A buyer for this type of home might offer $75,000, or even less. In this scenario, a seller would be smarter to pay for a new roof and sell the home for $100,000.

Moreover, many buyers will not buy a home that needs a new roof. They will worry the work involved will cost more than anticipated. Most buyers want a home that is in move-in condition. By not making repairs, you will limit the number of buyers who may be attracted to your home.

We are also hearing more and customers say that they do not want to spend the money upgrading the home and not get to enjoy it. Many of our clients who plan on putting their home on the market in the next few years are replacing their flooring now and stating that they plan on taking advantage of their investment. Our Design Consultants will help you select the right products that you will love now and that will help you later when it is time to sell your home.

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