CHANGE THE DECOR? OR LEAVE IT TO THE NEXT OWNER?

Selling “as is” vs. redecorating

The following are phrases heard from home sellers over the years when the subject of pre-sale fix-up comes up:
“I don’t want to guess what the new owner might prefer. I’m sure they would rather make those choices.”
“I know the carpets are dated and not in the best of condition, but wouldn’t most buyers prefer carpet to the hardwood floors underneath?”
“Yes, the drapes are dated and restrict light in the rooms, but isn’t it better to provide a buyer with some privacy for moving in?”
“It’s really not a big problem. We’ve lived with it that way for years”
I almost always disagree. Here’s why.

Competing well: Fact is, most home buyers prefer homes that are “turn-key”, ones they can move into without making a lot of changes. The home buying and moving process is complicated enough as it is—without throwing a remodeling project on top. To compete well with other homes “for sale” on the market, make moving into yours look like the easy choice.

Cash flow to make changes: Most home buyers are using all (or nearly all) of their available cash resources for their down payment and loan closing costs. Once they move in, they simply do not have a lot in reserve. When you require that buyers remodel after moving in, you have eliminated the majority of buyers that would otherwise consider your property. This is particularly true in the first-home-buyer market. Chances are they are borrowing, or receiving as a gift, some or all of the money they need to close on a home purchase.

Exaggerating the cost: You may know that a project will cost $1000. If that is the case, chances are good prospective buyers will guess twice that. The buyer for your house likely has less experience with home repairs and remodeling than you and, therefore, has less ability to accurately estimate costs. So spend the money and get it done. It removes objections in the buyer’s mind.

Having choices isn’t necessarily a marketing plus: Choice can be perceived as either good or bad. It can be wonderful to have choices and it can be terrible to have choices. The new home market provides a good example. Most new homes are bought as built and marketed by the builder—with all the choices made ahead of time by the builder. Far fewer are bought as custom homes with most or all of the choices made by the buyer. The reasons are many. For starters, most people are not that good at visualizing what a home will look like once it is finished—they need to see it and touch it to feel confident that it will satisfy them. Also, with choice comes responsibility. Most new home buyers would rather walk into a fresh-feeling, newly-completed home than bear the burden of hundreds of decisions. The same goes for the existing home market. Make it easy.

The “hassle” factor: Think about it: You don’t really want to paint, remove carpets and refinish hardwood floors. Most people don’t—especially when they already have enough on their plate. Forcing a buyer to take on projects only hamstrings your marketing efforts. You’re better off with the hassle of remodeling than the hassle of not selling..

Buyers who want you to sell “as is”: Those who are looking for a project are also looking for a bargain. In a market where prices are flat or falling—even when the buyer is an owner-occupant—restricting your potential buyer pool to re-modeler/speculators only enhances your prospects for a lower price.

In summary, make the choices and complete the work before going on the market—or take a break from the market and do the work before resuming your marketing efforts. It will pay you back in price and time on the market. Your property will compete better. Call us for advice in what to do and what colors to use.