September 3, 2010 

Deciding What to Fix or Repair

When deciding what you should fix or repair in your home, you should only perform the repairs that will substantially increase its value and/or decrease its market time.  These repairs include addressing any obvious damage, safety or health issues with the property, and cost-effective rehabilitation that will increase the home's appeal.  Besides the items that must be fixed, look for the things that a buyer would want corrected.

Go from room to room throughout the home and make a checklist of items that need repair (see list below).  Itemize your repairs into three categories:  Critical, Important and Optional. 

Critical repairs are problems that should be corrected before selling a home and often include:  painting, fixing leaky roofs, repairing tiling or flooring, fixing any heating or cooling problems, repairing any electrical problems, repairing any plumbing leaks or problems, fixing any broken windows, and cleaning the home thoroughly.  If a critical repair is not completed, you should expect to have your home on the market a lot longer than normal, expect to lower the sales price of your home, and expect to have fewer eligible buyers qualify to purchase your home (See the section on How a mortgage affects the sale)

Important repairs are items that should be considered before selling a home and include:  fixing the sprinkler system, repairing doors, fixing any broken fencing outside, cleaning spots on the ceiling from water damage, repairing pool pumps and cleaning mechanisms, and fixing any discolored flooring or countertops.  Important repairs will help sell a home quicker, but may not be necessary to do so.

Optional repairs are issues that may not be necessary to correct in order to sell the home and include: fixing the cracks in stucco, the driveway or sidewalks, refinishing hardwood floors, resurfacing cabinets.  Other optional repairs include changing old and worn door knobs and plate covers for new ones, replacing the faded window coverings or adding additional landscaping to the front or back yards.   Optional repairs tend to be more cosmetic in nature that a home buyer may expect to find after a home ages.

For many home owners, cost often dictates what is to be fixed and what stays as-is.  When weighing cost versus the repair, consider the repairs that will help sell the home quicker.  If the asphalt shingles on the roof are curling up or missing, consider what a buyer will think when he or she sees the roof from the outside.  Will he or she equate problems with the outside of the home with potential problems on the inside?

For what it is worth, one of the least expensive items a home owner can spend money on while maximizing the value from the expense is paint.  A fresh coat of paint will give any room or house a clean, open feeling.  More importantly, consider painting the front door...and why not, considering that the front door is the first contact a potential buyer will have with your home.

If you feel that a partial remodeling of the home is necessary, consider how much of an increase in value the remodeling will add to your home with the cost to make the change.  The following table, obtained from the National Home Builders Association, illustrates the percentage of increased value and the national average cost for many common household remodeling projects:

These figures are just a national average.  If you installed a swimming pool, the national average figures equate to approximately a $7,800 return on your investment.  A home with a pool in central Phoenix, AZ, can expect an increase in value of only $5,000 where as a pool may increase the value of a home in Miami, FL., by $9,600. 

In reality, the average seller spends approximately $500 in fixing up his or her home when selling.  As you prepare to sell your home, focus your attention on one primary goal:  How desirable can I make my home to appeal to as many potential buyers as possible?  Buyers need to feel that the home is in good condition and free of any problems or headaches that they might  assume by buying the home.  Furthermore, by adding a pool, for example, you may turn away many potential buyers who do not want the headaches of pool maintenance.  Do not try to second guess what a buyer wants out of a home.  Rather, make the repairs that reaffirm the fact that you are selling a home in good condition and that is neat, clean and in working order.  Focus your attention on the issues that will increase value, increase marketability and not cost a fortune. 
 

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