Buyers Want Move-in Ready
1.) Discounting doesn’t always work
We recently did the analysis of two homes on the same street, with the same floor plan and both had a pool. One was completely updated and the other was not. Both homes went to market around the same time. The non-updated house decided against making improvements and opted to “discount” their house by $65,000 to compete with the updated home. The updated home sold in 17 Days for 96.47% of it’s original asking price. The non-updated home was on the market for 354 days and NEVER sold.
2.) Do the work
I think this speaks to the fact that people want move-in ready homes. The percent of buyers willing to do major renovations is very small. A survey done by the National Association of Realtors in 2013 showed that less than 3% of buyers are willing to spend more than $50,000 on renovations and on average home buyers only spend approximately $4,500 in the first year of home ownership on renovations.
As you are thinking about whether or not to make improvements to your home, think about the resale affects of the improvements. When it is time to sell your home, do you want to appeal to as many buyers as possible or just a small percentage?