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REAL ESTATE q&a Q: I’m getting ready to sell my older home and my Realtor is suggesting I put a few thousand dollars into the house in updates so I can get more for it when I sell. Is this a good idea? Shouldn’t I spend as little as possible on the house so I can keep more money?
A: The answer to this question depends greatly on the condition of your house, which repairs/updates your Realtor is suggesting and how much money it will bring you. Judging from the fact that your house is “older” and I’m guessing not updated, you might find it quite worth your while to spend even more than a few thousand in updates. Generally speaking, in older neighborhoods, there are two kinds of houses: those that have been updated, and those that have not. The difference in sales price varies widely from area to area, but in some, a few thousand dollars in updates might bring you tens of thousands more when you sell.
Picking which updates to do is one of the tricks. If, for example, you update the bathrooms but not the kitchen, you house will still seem “original” to many buyers. They see the kitchen first and it’s one of the most important rooms of a house. If you have to choose between updating the kitchen or the bathrooms, update the kitchen. If you want to (and can afford to) do a little of both, there are little, very inexpensive things you can do in the bathroom that can make a big difference such as faucets, paint and shower curtains.
The key is to figure out how much you can sell the house in its current condition versus how much it can sell for if you update it. There also will be different levels of updates you could make that will impact the sales price. So, if you spend a few thousand dollars and paint, clean and make minor updates you may get a bit more for the house, but there will still be lots of things a new buyer will want to redo. If you spend double that, you might be able to get a lot more for the house and make way more money on it. In short, spending money now and taking some risk could mean a much bigger profit in the long run.
So, have your Realtor give you a number of options: as is, inexpensive updates and more extreme updates. Then compare them with what you can afford to do and go for the option that feels the best.
Talia Freedman is a Realtor with Signature Southwest Properties.
— This article appeared on page 3 of the West Side Journal
