Yesterday, I met with a potential client that wanted to get $400,000 when similar homes in her neighborhood were going for $350,000. Here is how the dialog went.
- Client: what can we do to up the price?
- Me: how long would you like to sell home in?
- Client: as soon as possible, but renting this property may also be an option.
- Me: is upgrading the property an option?
- Client: depends on the upgrades and their cost
Given her responses, below were my three suggestions to her.
1. Ride The Market
Although I don’t recommend this option (you’ll most likely be wasting time and attracting window shoppers), if you are itching to get your home in the market…then do it. But do it with the expectation to sit still for an extended amount of time. As time moves forward, the expectation is that other homes will progressively sell at higher prices. So once homes in your area begin to reach the price point you are looking for, your door may begin to get knocked on.
2. Upgrade Your Home
This option is a toss up because it all depends on the cost of the upgrade versus how much more money you will get for that upgrade. Eighty percent of the time (given location of property, market conditions, and desired upgrade), my advice to clients is not to do the upgrade for most likely you will break even or loose money. Again, depending on the latter variables, seldom will an upgrade benefit your bottom line.
Why? Cost of construction/remodeling has gone thru the roof compared to a decade ago. Parts and labor are not what they used to be…cheap-eeerrr. Due to this reality of life, it makes things difficult for say a $15,000 pool to bring up the value of your home by more than…$15,000 (get it?). Example:
– $15,000 cost of pool +$15,000 home appreciation = $0.00 more dollars in your bank account.
3. Sit On The Sidelines
What sidelines? I mean don’t put your property for sale. And wait till prices pick up.
This is the same as option 1 without placing your home in the market. And this option is the one I recommend the most if you:
- Are not in a rush to sell, and
- Want more money for your home
Until the next real estate bust, prices should continue to move up, or at worst…stay flat.