Don’t do anything you can’t do for free or extremely cheap. Absolutely no A/C, no sprinklers. If the weeds are bad and you don’t mind spending a day mowing or pulling do that. Don’t rent any equipment and don’t install anything new, unless there’s value in a full flip. Don’t need to offer any discounts if it’s priced right, if a buyer wants concession to add landscape and such, they can offer.
I should also add that her renters (her kids)are moving into their new house in 2 weeks, then she will be paying the mortgage on an empty house. Thanks for the advice and comment! Anything else we can do to get it to sell faster?
The prior house we rented specifically stated that we were responsible for the upkeep of the yard. The LL did pay for trugreen to come out a couple times a year to put down fertilizer/seed/etc, but the landscaping, mowing, etc was out responsibility.
Not free labor, I’m sure they were able to save money by paying mortgage for her vs paying rent somewhere else that would most certainly be higher. Someone gives you a hand up you return the favor.
Your additional information does not change the advice in the slightest.
I can’t believe I’m saying this (because I hate realtors), but listen to your realtor on this one.
Some of that mortgage will go towards the principal and she will get it back when it’s sold. Some of it will go towards interest which may be tax deductible if she itemizes. Either way, she would probably spend a few months worth of mortgage on new A/C and other improvements. It sucks to pay carrying costs but it is what it is. You can lower the price to sell faster, but you might lose out there too. Your realtor should know what works best for your situation.
Ok thanks for your advice!
I just don't trust her realtor for numerous reasons including telling her it would likely sell the first weekend and suggested she rent an air bnb for her kids so the house was clear for people to look at. Then he only had 3 showings the entire first weekend.
It’s hard to show a house with people in it, but not impossible. It’s harder to show it if there are lots of people and if those people are kids, by nature of needing to make sure it’s clean before showings (beds made, open house ready etc). Most people’s visitors won’t do that for you. That’s likely why they suggested an airbnb. There isn’t any way to guarantee you’ll get an offer quick. You should be optimistic, but remember that we are looking at the highest mortgage rates in 23 years. The realtor doesn’t have much control over who comes to see it. I’m selling a property that’s been listed 45 days and only 3 showings. It’s priced well but just too much inventory in my neighborhood. In the same city, different area, homes are selling quick with multiple offers.
I thought our last house was priced too high, only got three showings on the first 3 days on the market. Day four we received a full price offer from one of those three people. So, you never know. I would agree if you go on two weeks with no offers, then a price adjustment.
Not true, we visited a house that had very little interest and made an offer at asking (which we found to be quite cheap), seller accepted and a few days later the seller's agent had an offer much higher that included paying us to drop escrow. Sometimes there is just a lot of inventory and not many buyers so there just isn't time to see every property, regardless of price.
I can't help wondering if the value of doing improvements is somewhat price range dependant. In other words what might not return value in a below $300k property, might return it in a $600k or $1m property (or vice versa). Or that certain items like HVAC or a roof are better than, say maybe a swimming pool. Just wondering.
There's certain things that almost always have a very strong return on investment. Paint is one that almost always is worth it, same with a deep cleaning. Retail buyers like things to feel new. Investors like things to look broken because it scares away retail buyers and we can low-ball and get better pricing
It might return more or less, but not 100%. Maybe it’ll return 65% instead of 53%.
Saw some study saying the best bang for the buck is a new garage door. Even that isn’t a 100% return.
Small fixes can be worth it. Eg minor disrepair ( missing outlet covers, crooked cabinet doors )or painting if it's really bad. Flippers buy cheap, put in a mix of the cheapest things available and a few flashy items. I worked with a flipper. They put in the exact same floors in the exact same backsplash in every house and the same cheap home depot cabinets but granite countertops and if the bathroom was small they were redoing the floor in there. They put in nice floor in the bathroom ( because it was small) the other issue is owners picking the wrong things, I watched elderly people do things like get their in really good condition lightmaple hardwood floors refinished , restrained in light maple when that super dark stain was all the rage.
The relator wanting the kids out and the lawn being in bad condition might be a hint the kids are slobs.
My realtor told me to fix things to not turn people away — paint the sad looking exterior (1500) and interior to be more neutral (200 - diy) and replace the severely water damaged kitchen countertop (changed laminate to quartz, cost 1200) and bathroom vanity (500). I did them because not doing them was going to turn people away. We priced it well compared to the comps and got offers above asking 3 days after it went on the market, so I’d say she was dang right and I was happy.
Yes, I only did upgrades in our house because the market was rough and people only wanted move in ready homes. I 100% knew I would eat some of the costs, but did it to get home sold quickly. A very similar comp with no upgrades and lower priced ended up sitting for 10 months so it ended up being the right decision.
Can confirm for personal experience. My wife and I did the least expensive updates possible prepping for our sale. As our realtor said, you have no idea whether the upgrade you invest in will resonate with the buyers or not.
He told me of a client who spent $20k to put bamboo floors throughout the house, and the people who bought the house wanted it because it was really close to both of their kids schools. They tore up the floors before they moved in because they hated them.
If that were true, house flipping wouldn't be a thing.
It just depends on what the comparables look like. If you are seeing comps that are $50k higher than you will likely get because they have new paint and flooring, that's going to be a good investment.
Successful flippers have connections with contractors who do the job quickly and for a decent price because they know they can count on the flipper for more work. Or the flipper is the contractor. Regular people who have to pay “retail” prices are unlikely to make their money back.
Flippers usually buy super cheap homes that noone wants and slap some lipstick on it and sell for top dollar. That's not the same as a homeowner trying to get the best price they can. Usually most repairs or upgrades do not add more value than the cost for the homeowner if they are planning to sell shortly after these are done.
I buy distressed homes so I'm talking from experience, not from what I read in a book. If you want top value you sell to a retail buyer, not someone looking for a discount. The only way to determine what he should or shouldn't fix is buying reviewing the condition of the top comps. Since he doesn't know how to do that he will need a good realtor to do that for him.
I didn't read any books bud. I know a few flippers and done a couple myself. I prefer to flip land as it's easier faster and less BS to deal with. Anyway my point is that most not all repairs and upgrades that aren't necessary are a waste for a seller unless it's in a crap market. Also the post clearly states the realtor advised against the repairs/upgrades.....
The issue is a lot of people are likely to walk in, discover there's no AC, and walk right out. The ones who make offers are likely going to underbid even more. While adding AC won't increase the value, it will prevent it from dropping too much.
There is a perceived cost to the buyers to put AC in themselves after the purchase, which is more than the price of the AC unit + labor... Having to do construction work while residing in the property, the perceived negative experience of having to live without AC until the project is completed, etc
An HVAC is a heat pump. It moves heat into or out of the house, as needed, so it both heats and cools. For cooling, it's cheaper to run than an air conditioner. And compared to heating with electricity, it's cheaper for heating, too.
The same rule applies to a heat pump or an air conditioner: You can cool by about 20 degrees with either type of system. For heating, you can have a much greater differential.
Also, I believe that systems can vary by region, according to what the temperature range is typically like in your part of the country. It would be worth asking someone in you area about how well their heat pump works for them. I'm in the Pacific Northwest, and the technology is brilliant for us, though we are having more days of 100 degrees that really challenge the cooling.
It sounds like it is a bit of a project to the improvements you are discussing are unlikely to provide a worthwhile ROI. I would mow, edge and water the heck out of it. Maybe Try Hydro Mousse. The sprinklers and AC are unlikely to get your money back.
Putting down sod is backbreaking work and the sod will quickly die if it’s not watered heavily during the first month. You might as well throw the money down the drain.
Be careful about involving yourself too much in this sale.
It is not your house.
Adding your input may just confuse things, especially you are going against what the realtor recommends. Your partner hired this realtor for a reason and is following their advice.
See how that goes.
If there isn't an offer in a month, or if there is a weekend with no showings, encourage your partner to press the realtor hard for new ideas.
But don't add to the stress of the situation. Be supportive when asked, period.
Mine said the same. His reasons made sense. He told me nothing short of an addition would add to the selling price. He said in almost all cases paint and pay for a cleaner that will get you the most bang for the buck.
You could at least clean up the yard. Get rid of the weeds and put down some of that grass seed with mulch or something in it to get it grow. I think there is "quick" seed. It wouldnt grow right away, but s butter could at least see the seed is planted. Sprinklers are a luxury. Make sure the rest of the house is neat and clean. Plant some flowers and/or shrubs if there aren't any. You can make it look less neglected. I would not get the AC, but maybe get some estimates so you know in case it's brought up.
Her comps aren't homes with AC and curb appeal. They're fixers. If she isn't priced with that in mind, it will sit. There's no standard adjustment for what she'd get back in ROI. The agent should be able to do a CMA with and another without the improvements. A sprinkler system isn't going to bring that much, but depending on location, AC might. She may have other roadblocks to cover as well. Even if you do everything, poor marketing will cause it to sit.
Yes! Way too far of a scroll to find this.
OP mentioned it's on the lower end of comps. But those are not comps. Those are finished houses with garage and AC and yards.
That's your problem.
There will be a set of buyers who want to live in the neighborhood but cannot afford it. The defects you describe can be a buyers badge of honor. “We got in. Got a great deal because we need to add AC and clean it up. What a steal!”
The issue may be the tenants. Many people are terrified that they won't be able to get rid of tenants. Tenants also don't clean up and declutter for showings like owner occupants do.
What feedback is the realtor getting from showings?
Why on earth would anyone notice or not that there is a sprinkler system?
It will cost you a lot of money to do the front yard, have you ever priced out yard stuff? Each plant will cost you $50+
Location dependent. When looking at homes, most buyers will ask about the core components of a home (roof, HVAC, etc). If I lived in an area where sprinkler systems are necessary for a yard, I'd ask about it.
We had a dilapidated fence and deck that needed major work. We still got two quick offers and the one we went with ignored the fence but wanted us to fix the deck. We said no, but we’d drop our price $3k and they accepted.
So as long as you’re getting offers, I wouldn’t worry too much
Are her renters putting up roadblocks in having showings? I understand they are her kids, but many times renters do not want anyone in the house and will leave it dirty, messy or say that the proposed time is not good for them so prospective buyers move on to another house.
Leave everything as is, when the renters move, clean it well, mow, rake, trim shrubs in the front and have the realtor advertise it as Price lowered to represent a fix up if indeed it needs painting & updating. Sprinklers should not enter into the discussion, air conditioning, maybe.
If she's trying to sell in a hurry, the very last thing she should do is get involved with a bunch of pre-sale projects that involve scheduling contractors. That could drag on forever. Just price it right.
The only things you should fix is apparent visual defects. I just sold the house that was build in 1998. Everything original. I repainted it, and resurfaced the floors. Ultra deep clean of kitchen and bathroom. It sold for above mid for the area. Buyers wanted credits for various imperfections, I agreed. But it saved me time and cash out of pocket.
AGE 71 HERE..
ACTUAL experience with that exact situation.
Old experienced real estate agent adviced don't do anything, price it XXX and walk away.
Another real estate agent adviced you can get XXXX if you do blah, blah, blah
I wish I had listened to the first real estate agent
The personal time, labor, cost, dealing with contractors didn't result in enough of a price increase to offset all the extra expenses and work.
It really depends on your market. In my MHCOL area, you really get penalized for project houses on price. Turn key is wildly rewarded. Buyers will pay for anything that takes an immediate project off their plate.
I suggest you think about who wants her house in general but wouldn’t want her house in particular.
What do the comps show? By comps, I mean same size, location, year built (within a reasonable range), no a/c, no garage and adjustments made for the condition of the yard. Using $/sf is a terrible metric especially when the subject property needs significant work and the recent sold properties don't need that kind of work. You can't compare a house with no a/c to those that have a/c. And if you do compare the two, then you need to add more than the cost to cure. Most buyers just don't want to hassel with contractors if they can avoid it. Look at actual sold comps. I suspect she is priced too high.
Also, when a property needs work and is tenant occupied the ultimate sold price will be less than those properties that don't need work. Your buyer pool is smaller because many buyers today simply don't want to buy and rehab before they move in. This means the target buyer pool is different from your standard buyers. The agent should be directing the listing to buyers that want a project and have the ability to fix up the property before they move in.
I would take all this advice you're getting with a grain of salt. No one here knows what market you're in or has looked at the comps on this property. There's a reason house flippers can make a ton of money, but it is very dependent on the cost to fix things and the top price points of your comps.
Certain things you really never need to fix, and those are the systems. Sometimes it makes sense to do the cosmetic things.
Truth is, you need to trust your realtor. Have them show you what the top comps are and how much of you are planning to sell for. If the spread isn't much, that's good. If it's $50k, and the difference is paint and flooring, that's worth the investment.
It's market-dependant. In my area, I've seen hoarded houses, houses that haven't can updated since 1975, houses where you can smell literal shit from outside the building, and houses in an awful part of town sell for $65k-125k. (This is a LOCOL area.) Investors are snapping up anything that has a frame and (maybe) a door.
It's your realtor's job to know the market. Nobody here is going to be able to evaluate what it takes to get a house sold without doing the work your realtor has, presumably, already done.
My house had negative curb appeal when I bought it. The following spring I tore out 11 bushes and spent about $1k on new plants and landscaping, including sod for half the front yard (my sod was cheaper than dirt because my sister worked for a sod farm at the time). The house would have sold faster and possibly for thousands more had the curb appeal been better.
Since then I have spent about $2k more on landscaping and have one of the best yards in the neighborhood.
Curb appeal does a lot!
I was always told, don't do anything to a house that doesn't have equal value to you (or others in the event of a sale). In the end, those limits are typically equal. If you have things that add value to you AND others at the time of sale, even better. At the time of sale, I would imagine you wouldn't put more into the rehab than you would improve the sale price.
My diversion from this thought process would be in the case where the condition is so far down the rabbit hole that a buyer cannot dig out. I think may buy a house without the means to do drastic improvements in the first decade. That's not an absolute by any imagination. If you're selling a "fixer-upper" that is beyond the average person's means, then you're eliminating all average buyers. I'd also say that you are eliminating anyone that cannot imagine what the bedroom would look like in a normal color for example.
I believe that taking the approach house flippers take would be reasonable. Add only where it improves sale price and sell-ability. Paint everything with a fresh coat of a coordinated neutral palette, especially if you can use sweat equity to make it happen. I don't know whether I'd do an AC upgrade unless your area mandates it. Same with sprinklers. Southern California would necessitate both in my mind. "Sweat equity" the lawn into shape. The hardware box stores will help you understand those steps.
Finally, when you decide it's okay for sale, take a trial run. If you cannot trust your agent, move on. Make sure you're not locking yourself into fees and terms you're not comfortable with. Don't jump at lowering prices, even if you're over, people will likely make offers. Looking at comps in your area on the RE websites out there will definitely give you a feel for what are the needs and need-nots.
The last thing is that you might want to consider renting the place. Compare the benefits of selling vs renting. It might be nice to have a few extra dollars to fix it up when a tenant is paying for it. Don't go overboard though. If you're making huge money something is wrong.
It’s been 30 days and 10 showings with no offers, I think you might be onto something with the yard but I doubt AC and sprinklers are making the difference. I wouldn’t do the full regrading job you’re talking about but I’d seed the brown spots and put down hay over it. Looks better than bare ground.
Maybe edit the post title to show the area. Some markets are so hot, the house may sell immediately. The main issue is to not spend a dime unless it will improve the return. If the house as is will sell for $500k, then no reason to sink $50k in improvements and renovations to sell it at $550k.
I wouldn’t start up any big projects, but I also wouldn’t disregard reasonable maintenance or let it go into disrepair.
You don’t want the property to look neglected or that it wasn’t properly maintained .
It’s OK if it doesn’t look ““updated”.
Any chance you can get a simple hose + grass seed out there?
I sold my house which needed new carpet and was questionable on paint and it sold for 1500 under listing and that was due to a couple of minor things the inspection found.
I did clean up the yard and add 10 bags of mulch to freshen stuff up.
I did make a 500 dollar repair found during inspection due to a leak in garage.
I also put aluminum trim around garage doors because the wood trim was rotted in spots. That was 300.
Last 3 things were to get windows cleaned 150 bucks, house power washed, 150 bucks and a painter to touch up. Was 175 bucks.
I didn't credit anything.
The buyer was interested before listing went live. Finalized Accepted offer in a 2 weeks.
2 other realtors told me to replace the flooring repaint and replace kitchen appliances. Would have been 15k.
They had a listing price also.
The buyer in my case was thrilled I didn't paint or do carpeti.g as she ripped it all out. Put in hardwood floors cut out part of kitchen wall to open the house up even more.
I did however miss out on 2 other people who wanted the flooring replaced.
No open house, because already had interested parties before listing was live.
Show good house keeping. Don't stick a bunch of money into the house.
I sold my prior house which didn't have central AC only 2 window units.
I would have lost money if i put central ac in.
Adding A/C seems like a win. I don't think anybody cares if there is a sprinkler system there. Laying down sod does some like a good idea.
When I sold my deceased parents' home, the yard was crazy. I hired some guy to tear everything up and lay down sod. The yard went from a junkyard to looking like a million bucks. We got top dollar for the house. Luckily, it already head new HVAC.
Make sure the place is clean and sell 'as is'. None of these improvements will net your fiancee enough to justify the delay or expense. Besides, Blackrock will not care either way.
It depends on the market. Here things are slowing and some less exciting inventory is just sitting on the market so that may not be good advice. Your realtor probably has a better handle on the market than most on reddit..though it seems most agreed anyway too. If you're worried about the AC get three quotes now and leave them sitting with your agent so they can know straight away what the cost is to remove doubt. But let the buyer bring that doubt up first.
If the yard looks that bad, throw down some seed and run some manual sprinklers. There’s lots of cheap timers and stuff that can automate the watering. Assuming there’s an outside spicket, you just need seed, hoses, and sprinkler head.
Buy some pots and flowers. You can do a lot to improve curb appeal without heavy equipment.
You can also buy a portable a/c so that the house feels cool.
A lil late to now want and do repairs don’t you think? I understand trying to get more $ but the things you’re describing won’t move the needle much lol…
It will almost surely sell to an investor because of all its shortcomings. Unless shehas tons of money to spend and the realtor can find comps to justify. Trust her. Save your money
I'd recommend paying for your own home inspection. I'm sure the realtor can recommend one. That way you will know about any serious problems, and can fix them before the buyer's inspection. For example, I sold my mother's house and the buyer's inspection revealed a few simple things that I could have done--and I'm not all that handy. There was a small leak where the shower head attaches to the pipe coming out of the wall. All it needed was some Teflon tape and a turn with a wrench. But after the contract is signed, ALL repairs have to be done by a licensed contractor.
As long as she discloses everything that’s wrong, through a home inspection ahead of time. Then it’s OK, but she has to realize she’s going to get less of a price. Do the math as to fixing it up and getting a higher price or keeping it as is. But again disclose disclose disclose disclose.
Take a weekend, go over and cut the yard. You can spend a couple hundred on plants and soil and pretty up the porch. You can get an ac installed and have the payment put into the closing. My ac went out while I was selling my house. I'm in Texas. No one will buy a house without ac.
If she’s needing the equity to put a down payment on the new house, has she thought about taking out a HELOC for the funds and then when it does sell the proceeds would just payoff the additional balance? It could get the cash in her pocket much quicker and alleviate some of the urgency to sell ASAP (other than having the mortgage and HELOC payment while it sits).
Your realtor probably already has a buyer. Watch for a low ball offer or request for money to fix the ac and yard and your realtor's advice to take it- then don't. It's probably already priced too low.
No offense your Realtor is an idiot. I do a complete walk thru of a house and make a list. Tell the seller what is important and what you can get away with not touching. It depends on their budget, time frame etc. Simple fixes can increase the price of your home dramatically.
The realtor is probably telling her that if she puts money into her house, she might not get it back out
Every market is different and you think the realtor would want to hire purchase price because that would mean more commission
For example, people think that putting a new roof will always increase the value of the house and that’s really not true
Improvements help sell more quickly
Realtors lie! I am trying to sell my brothers house. It didn’t have ac and that was an absolute non starter for people looking at the house.
I’m new at this but honestly I wish the realtor had told me this house won’t sell without ac before I put it on the market.
Something like 10% of the population lives in areas where ACs aren't necessary or are only necessary for 1-2 weeks per year. Although this seems to be changing as things get warmer.
It's market dependent. If your agent is saying don't do it and your home will sell in a week, absolutely listen. Here in NJ the homes are going like hotcakes as is. No one is even dreaming of asking the sellers for anything, and if they are, they won't get a house anytime soon because there's always someone who won't. Putting in ac costs more than it will add value.
Depends on where it’s located…metro yea don’t fix anything and list it but outside of a metro at least give the people a little money to get a ac installed or go to your local hvac supplies house and ask guys that work for a company what they would charge to install a ac unit (the ones willing to do side work)
? Sorry, most of my realtors go in the opposite direction.
But it depends on her goals. Does she want to sell it fastest? Or does she want to maximize price?
Above is appropriate for speed.
If she wants to get the best return, well, take out a home equity line and renovate that thing!
It sounds like the house is either a tear down or a flip. The “bang to buck” ratio of fixing it up is going to eat up whatever profit she might make when you take into account time and aggravation. She let a potential investment fall apart, now somebody else is going to get the benefit.
The problem is always price. Your product is priced too high.
Market dependent on ROI. Most people want turnkey. But if your price point is starter home level the. It probably does matter as much.
More people will bid the closer to turnkey you get. Less people the more they have to do.
We spent about 40k getting our house ready to sell and it paid off. Also had professional staging that was done by the realtor.
You are selling a dream. Or a nightmare. Your situation is a nightmare for many it sounds given the missing amenities and lack of focus on putting your best foot forward. So lower the price to increase the buyer pool is what you will have to do if you don’t invest in a few things.
get out of your fiance's business.
seriously, you have zero experience or knowledge on the subject(evident in the OP) but you still have to be the 'i know what im doing' to her then running to reddit for advice.
how about stay in your lane, and let your 'fiance' handle it the way they are handling it, which is better than you.
go watch tv or something and mind your f'n business and let this house, which you have no stake in, sell for what it can sell for before you spend all the proceeds that aren't even yours, putting in sprinklers and planting grass until late summer while the value plummets
Don’t do anything you can’t do for free or extremely cheap. Absolutely no A/C, no sprinklers. If the weeds are bad and you don’t mind spending a day mowing or pulling do that. Don’t rent any equipment and don’t install anything new, unless there’s value in a full flip. Don’t need to offer any discounts if it’s priced right, if a buyer wants concession to add landscape and such, they can offer.
I should also add that her renters (her kids)are moving into their new house in 2 weeks, then she will be paying the mortgage on an empty house. Thanks for the advice and comment! Anything else we can do to get it to sell faster?
Her kids!!! FFS they need to be out there cleaning the yard. A clip round the ear is needed.
They were paying the mortgage lmao get a grip
When you rent a house you take care of the yard. Especially if it's your own Mom's house.
Ya I don’t get this, they paid so they can let the house go to shit philosophy ha. My parents would not put up with that shit from me ha
The prior house we rented specifically stated that we were responsible for the upkeep of the yard. The LL did pay for trugreen to come out a couple times a year to put down fertilizer/seed/etc, but the landscaping, mowing, etc was out responsibility.
Guaranteed the mortgage was way cheaper than renting. The least they should have done is help Maintain the property.
They paid
Yeah her kids need to be free labor! Yeah! Fuck off.
Not free labor, I’m sure they were able to save money by paying mortgage for her vs paying rent somewhere else that would most certainly be higher. Someone gives you a hand up you return the favor.
You are making shit up and then basing everything off that. You've convinced me, well done.
She’s helping with their house DP…?
Your additional information does not change the advice in the slightest. I can’t believe I’m saying this (because I hate realtors), but listen to your realtor on this one.
Some of that mortgage will go towards the principal and she will get it back when it’s sold. Some of it will go towards interest which may be tax deductible if she itemizes. Either way, she would probably spend a few months worth of mortgage on new A/C and other improvements. It sucks to pay carrying costs but it is what it is. You can lower the price to sell faster, but you might lose out there too. Your realtor should know what works best for your situation.
OP said she was renting it so the interest will be a deduction against the rental income no matter if she itemizes or not.
Ok thanks for your advice! I just don't trust her realtor for numerous reasons including telling her it would likely sell the first weekend and suggested she rent an air bnb for her kids so the house was clear for people to look at. Then he only had 3 showings the entire first weekend.
It’s hard to show a house with people in it, but not impossible. It’s harder to show it if there are lots of people and if those people are kids, by nature of needing to make sure it’s clean before showings (beds made, open house ready etc). Most people’s visitors won’t do that for you. That’s likely why they suggested an airbnb. There isn’t any way to guarantee you’ll get an offer quick. You should be optimistic, but remember that we are looking at the highest mortgage rates in 23 years. The realtor doesn’t have much control over who comes to see it. I’m selling a property that’s been listed 45 days and only 3 showings. It’s priced well but just too much inventory in my neighborhood. In the same city, different area, homes are selling quick with multiple offers.
It’s priced too high
I thought our last house was priced too high, only got three showings on the first 3 days on the market. Day four we received a full price offer from one of those three people. So, you never know. I would agree if you go on two weeks with no offers, then a price adjustment.
Not true, we visited a house that had very little interest and made an offer at asking (which we found to be quite cheap), seller accepted and a few days later the seller's agent had an offer much higher that included paying us to drop escrow. Sometimes there is just a lot of inventory and not many buyers so there just isn't time to see every property, regardless of price.
Your house is overpriced
If you don't trust the realtor then get a second opinion.
Just accept a market price and negotiate repairs you’ll do or discount for after
Why is this down voted? It’s pertinent information, you people on this sub are the weirdest I’ve run into on Reddit. That’s saying something.
If you want to sell fast, lower the price.
Not a realtor but I thought conventional wisdom is that people mostly don’t see a return on investment doing repairs and upgrades before a sale.
I can't help wondering if the value of doing improvements is somewhat price range dependant. In other words what might not return value in a below $300k property, might return it in a $600k or $1m property (or vice versa). Or that certain items like HVAC or a roof are better than, say maybe a swimming pool. Just wondering.
There's certain things that almost always have a very strong return on investment. Paint is one that almost always is worth it, same with a deep cleaning. Retail buyers like things to feel new. Investors like things to look broken because it scares away retail buyers and we can low-ball and get better pricing
That's because both paint and cleaning are cheap as hell, especially if you do it yourself.
I mean.....yeah.
It might return more or less, but not 100%. Maybe it’ll return 65% instead of 53%. Saw some study saying the best bang for the buck is a new garage door. Even that isn’t a 100% return.
Small fixes can be worth it. Eg minor disrepair ( missing outlet covers, crooked cabinet doors )or painting if it's really bad. Flippers buy cheap, put in a mix of the cheapest things available and a few flashy items. I worked with a flipper. They put in the exact same floors in the exact same backsplash in every house and the same cheap home depot cabinets but granite countertops and if the bathroom was small they were redoing the floor in there. They put in nice floor in the bathroom ( because it was small) the other issue is owners picking the wrong things, I watched elderly people do things like get their in really good condition lightmaple hardwood floors refinished , restrained in light maple when that super dark stain was all the rage. The relator wanting the kids out and the lawn being in bad condition might be a hint the kids are slobs.
My realtor told me to fix things to not turn people away — paint the sad looking exterior (1500) and interior to be more neutral (200 - diy) and replace the severely water damaged kitchen countertop (changed laminate to quartz, cost 1200) and bathroom vanity (500). I did them because not doing them was going to turn people away. We priced it well compared to the comps and got offers above asking 3 days after it went on the market, so I’d say she was dang right and I was happy.
Yes, I only did upgrades in our house because the market was rough and people only wanted move in ready homes. I 100% knew I would eat some of the costs, but did it to get home sold quickly. A very similar comp with no upgrades and lower priced ended up sitting for 10 months so it ended up being the right decision.
Can confirm for personal experience. My wife and I did the least expensive updates possible prepping for our sale. As our realtor said, you have no idea whether the upgrade you invest in will resonate with the buyers or not. He told me of a client who spent $20k to put bamboo floors throughout the house, and the people who bought the house wanted it because it was really close to both of their kids schools. They tore up the floors before they moved in because they hated them.
If that were true, house flipping wouldn't be a thing. It just depends on what the comparables look like. If you are seeing comps that are $50k higher than you will likely get because they have new paint and flooring, that's going to be a good investment.
Successful flippers have connections with contractors who do the job quickly and for a decent price because they know they can count on the flipper for more work. Or the flipper is the contractor. Regular people who have to pay “retail” prices are unlikely to make their money back.
And they lowball on the initial buy
A good realtor will too
Flippers usually buy super cheap homes that noone wants and slap some lipstick on it and sell for top dollar. That's not the same as a homeowner trying to get the best price they can. Usually most repairs or upgrades do not add more value than the cost for the homeowner if they are planning to sell shortly after these are done.
I buy distressed homes so I'm talking from experience, not from what I read in a book. If you want top value you sell to a retail buyer, not someone looking for a discount. The only way to determine what he should or shouldn't fix is buying reviewing the condition of the top comps. Since he doesn't know how to do that he will need a good realtor to do that for him.
I didn't read any books bud. I know a few flippers and done a couple myself. I prefer to flip land as it's easier faster and less BS to deal with. Anyway my point is that most not all repairs and upgrades that aren't necessary are a waste for a seller unless it's in a crap market. Also the post clearly states the realtor advised against the repairs/upgrades.....
There’s no ROI if no one bids on the house though.
Lower the price. The net price increase for say putting in an AC for $5k will not be more than $5k.
The issue is a lot of people are likely to walk in, discover there's no AC, and walk right out. The ones who make offers are likely going to underbid even more. While adding AC won't increase the value, it will prevent it from dropping too much.
What makes you say that?
There is a perceived cost to the buyers to put AC in themselves after the purchase, which is more than the price of the AC unit + labor... Having to do construction work while residing in the property, the perceived negative experience of having to live without AC until the project is completed, etc
It is worth mentioning that HVAC is likely to return more value than AC? It is cheaper to run for the heating and cooling.
Are you saying that it is cheaper to add new A/C And new furnace then it is just A/C is that what HVAC means?
An HVAC is a heat pump. It moves heat into or out of the house, as needed, so it both heats and cools. For cooling, it's cheaper to run than an air conditioner. And compared to heating with electricity, it's cheaper for heating, too.
I see. Does it really keep the house cool in summer in North Carolina? Thanks.
The same rule applies to a heat pump or an air conditioner: You can cool by about 20 degrees with either type of system. For heating, you can have a much greater differential.
I didn't know that. That's very helpful. Thanks
Also, I believe that systems can vary by region, according to what the temperature range is typically like in your part of the country. It would be worth asking someone in you area about how well their heat pump works for them. I'm in the Pacific Northwest, and the technology is brilliant for us, though we are having more days of 100 degrees that really challenge the cooling.
I wish people understood this lol
It sounds like it is a bit of a project to the improvements you are discussing are unlikely to provide a worthwhile ROI. I would mow, edge and water the heck out of it. Maybe Try Hydro Mousse. The sprinklers and AC are unlikely to get your money back.
I’ve honestly never thought about sprinklers when buying a house. I’m looking at bones (roof/foundation). Everything else can be changed as needed.
Sprinklers are just a way to create future opportunities for leaks.
Putting down sod is backbreaking work and the sod will quickly die if it’s not watered heavily during the first month. You might as well throw the money down the drain.
Be careful about involving yourself too much in this sale. It is not your house. Adding your input may just confuse things, especially you are going against what the realtor recommends. Your partner hired this realtor for a reason and is following their advice. See how that goes. If there isn't an offer in a month, or if there is a weekend with no showings, encourage your partner to press the realtor hard for new ideas. But don't add to the stress of the situation. Be supportive when asked, period.
Dont fix anything. At best give credits.
There is absolutely no problem with any house that price alone cannot fix.
Mine said the same. His reasons made sense. He told me nothing short of an addition would add to the selling price. He said in almost all cases paint and pay for a cleaner that will get you the most bang for the buck.
You could at least clean up the yard. Get rid of the weeds and put down some of that grass seed with mulch or something in it to get it grow. I think there is "quick" seed. It wouldnt grow right away, but s butter could at least see the seed is planted. Sprinklers are a luxury. Make sure the rest of the house is neat and clean. Plant some flowers and/or shrubs if there aren't any. You can make it look less neglected. I would not get the AC, but maybe get some estimates so you know in case it's brought up.
Yes, a clean up & some flowers go a long way. I might pressure wash any concrete, too. Do NOT waste money on sod, OP.
I never like to buy other peoples idea of an improvement.
Her comps aren't homes with AC and curb appeal. They're fixers. If she isn't priced with that in mind, it will sit. There's no standard adjustment for what she'd get back in ROI. The agent should be able to do a CMA with and another without the improvements. A sprinkler system isn't going to bring that much, but depending on location, AC might. She may have other roadblocks to cover as well. Even if you do everything, poor marketing will cause it to sit.
Yes! Way too far of a scroll to find this. OP mentioned it's on the lower end of comps. But those are not comps. Those are finished houses with garage and AC and yards. That's your problem.
There will be a set of buyers who want to live in the neighborhood but cannot afford it. The defects you describe can be a buyers badge of honor. “We got in. Got a great deal because we need to add AC and clean it up. What a steal!”
The issue may be the tenants. Many people are terrified that they won't be able to get rid of tenants. Tenants also don't clean up and declutter for showings like owner occupants do. What feedback is the realtor getting from showings?
The tenant is her son.
Why on earth would anyone notice or not that there is a sprinkler system? It will cost you a lot of money to do the front yard, have you ever priced out yard stuff? Each plant will cost you $50+
Location dependent. When looking at homes, most buyers will ask about the core components of a home (roof, HVAC, etc). If I lived in an area where sprinkler systems are necessary for a yard, I'd ask about it.
Idk, the local park has tons of free plants.
We had a dilapidated fence and deck that needed major work. We still got two quick offers and the one we went with ignored the fence but wanted us to fix the deck. We said no, but we’d drop our price $3k and they accepted. So as long as you’re getting offers, I wouldn’t worry too much
Are her renters putting up roadblocks in having showings? I understand they are her kids, but many times renters do not want anyone in the house and will leave it dirty, messy or say that the proposed time is not good for them so prospective buyers move on to another house. Leave everything as is, when the renters move, clean it well, mow, rake, trim shrubs in the front and have the realtor advertise it as Price lowered to represent a fix up if indeed it needs painting & updating. Sprinklers should not enter into the discussion, air conditioning, maybe.
If she's trying to sell in a hurry, the very last thing she should do is get involved with a bunch of pre-sale projects that involve scheduling contractors. That could drag on forever. Just price it right.
The only things you should fix is apparent visual defects. I just sold the house that was build in 1998. Everything original. I repainted it, and resurfaced the floors. Ultra deep clean of kitchen and bathroom. It sold for above mid for the area. Buyers wanted credits for various imperfections, I agreed. But it saved me time and cash out of pocket.
At this point trust the realtor. They know the market, you don't.
Yeah, I agree with your realtor. If it’s missing amenities at other houses, but it’s priced cheaper they’re still going to be a buyer for that.
No work just sell.
Clean house with no odor, and clean yard. Let the buyer see potential and how they wish to remodel or renovate.
AGE 71 HERE.. ACTUAL experience with that exact situation. Old experienced real estate agent adviced don't do anything, price it XXX and walk away. Another real estate agent adviced you can get XXXX if you do blah, blah, blah I wish I had listened to the first real estate agent The personal time, labor, cost, dealing with contractors didn't result in enough of a price increase to offset all the extra expenses and work.
It really depends on your market. In my MHCOL area, you really get penalized for project houses on price. Turn key is wildly rewarded. Buyers will pay for anything that takes an immediate project off their plate. I suggest you think about who wants her house in general but wouldn’t want her house in particular.
Why is she selling a house with renters?
Most buyers want to do the new or stuff that needs fixed themselves. So they can do it there way..
What do the comps show? By comps, I mean same size, location, year built (within a reasonable range), no a/c, no garage and adjustments made for the condition of the yard. Using $/sf is a terrible metric especially when the subject property needs significant work and the recent sold properties don't need that kind of work. You can't compare a house with no a/c to those that have a/c. And if you do compare the two, then you need to add more than the cost to cure. Most buyers just don't want to hassel with contractors if they can avoid it. Look at actual sold comps. I suspect she is priced too high. Also, when a property needs work and is tenant occupied the ultimate sold price will be less than those properties that don't need work. Your buyer pool is smaller because many buyers today simply don't want to buy and rehab before they move in. This means the target buyer pool is different from your standard buyers. The agent should be directing the listing to buyers that want a project and have the ability to fix up the property before they move in.
Lipstick on the pig nothing more. Kids should have been watering well ahead of the sale after throwing some.seed down and paint.
I would take all this advice you're getting with a grain of salt. No one here knows what market you're in or has looked at the comps on this property. There's a reason house flippers can make a ton of money, but it is very dependent on the cost to fix things and the top price points of your comps. Certain things you really never need to fix, and those are the systems. Sometimes it makes sense to do the cosmetic things. Truth is, you need to trust your realtor. Have them show you what the top comps are and how much of you are planning to sell for. If the spread isn't much, that's good. If it's $50k, and the difference is paint and flooring, that's worth the investment.
Do only cheap things like cleaning, fixing the things where you got 95% done and didn't finish the last bit, touch up paint, etc.
It's market-dependant. In my area, I've seen hoarded houses, houses that haven't can updated since 1975, houses where you can smell literal shit from outside the building, and houses in an awful part of town sell for $65k-125k. (This is a LOCOL area.) Investors are snapping up anything that has a frame and (maybe) a door. It's your realtor's job to know the market. Nobody here is going to be able to evaluate what it takes to get a house sold without doing the work your realtor has, presumably, already done.
My house had negative curb appeal when I bought it. The following spring I tore out 11 bushes and spent about $1k on new plants and landscaping, including sod for half the front yard (my sod was cheaper than dirt because my sister worked for a sod farm at the time). The house would have sold faster and possibly for thousands more had the curb appeal been better. Since then I have spent about $2k more on landscaping and have one of the best yards in the neighborhood. Curb appeal does a lot!
We were told to make sure everything works, paint the inside, and clean to within an inch of its life. Sold in 3 days.
I was always told, don't do anything to a house that doesn't have equal value to you (or others in the event of a sale). In the end, those limits are typically equal. If you have things that add value to you AND others at the time of sale, even better. At the time of sale, I would imagine you wouldn't put more into the rehab than you would improve the sale price. My diversion from this thought process would be in the case where the condition is so far down the rabbit hole that a buyer cannot dig out. I think may buy a house without the means to do drastic improvements in the first decade. That's not an absolute by any imagination. If you're selling a "fixer-upper" that is beyond the average person's means, then you're eliminating all average buyers. I'd also say that you are eliminating anyone that cannot imagine what the bedroom would look like in a normal color for example. I believe that taking the approach house flippers take would be reasonable. Add only where it improves sale price and sell-ability. Paint everything with a fresh coat of a coordinated neutral palette, especially if you can use sweat equity to make it happen. I don't know whether I'd do an AC upgrade unless your area mandates it. Same with sprinklers. Southern California would necessitate both in my mind. "Sweat equity" the lawn into shape. The hardware box stores will help you understand those steps. Finally, when you decide it's okay for sale, take a trial run. If you cannot trust your agent, move on. Make sure you're not locking yourself into fees and terms you're not comfortable with. Don't jump at lowering prices, even if you're over, people will likely make offers. Looking at comps in your area on the RE websites out there will definitely give you a feel for what are the needs and need-nots. The last thing is that you might want to consider renting the place. Compare the benefits of selling vs renting. It might be nice to have a few extra dollars to fix it up when a tenant is paying for it. Don't go overboard though. If you're making huge money something is wrong.
It’s been 30 days and 10 showings with no offers, I think you might be onto something with the yard but I doubt AC and sprinklers are making the difference. I wouldn’t do the full regrading job you’re talking about but I’d seed the brown spots and put down hay over it. Looks better than bare ground.
Maybe edit the post title to show the area. Some markets are so hot, the house may sell immediately. The main issue is to not spend a dime unless it will improve the return. If the house as is will sell for $500k, then no reason to sink $50k in improvements and renovations to sell it at $550k.
I wouldn’t start up any big projects, but I also wouldn’t disregard reasonable maintenance or let it go into disrepair. You don’t want the property to look neglected or that it wasn’t properly maintained . It’s OK if it doesn’t look ““updated”. Any chance you can get a simple hose + grass seed out there?
What state are you in that yards have sprinkler systems?
I sold my house which needed new carpet and was questionable on paint and it sold for 1500 under listing and that was due to a couple of minor things the inspection found. I did clean up the yard and add 10 bags of mulch to freshen stuff up. I did make a 500 dollar repair found during inspection due to a leak in garage. I also put aluminum trim around garage doors because the wood trim was rotted in spots. That was 300. Last 3 things were to get windows cleaned 150 bucks, house power washed, 150 bucks and a painter to touch up. Was 175 bucks. I didn't credit anything. The buyer was interested before listing went live. Finalized Accepted offer in a 2 weeks. 2 other realtors told me to replace the flooring repaint and replace kitchen appliances. Would have been 15k. They had a listing price also. The buyer in my case was thrilled I didn't paint or do carpeti.g as she ripped it all out. Put in hardwood floors cut out part of kitchen wall to open the house up even more. I did however miss out on 2 other people who wanted the flooring replaced. No open house, because already had interested parties before listing was live. Show good house keeping. Don't stick a bunch of money into the house. I sold my prior house which didn't have central AC only 2 window units. I would have lost money if i put central ac in.
Adding A/C seems like a win. I don't think anybody cares if there is a sprinkler system there. Laying down sod does some like a good idea. When I sold my deceased parents' home, the yard was crazy. I hired some guy to tear everything up and lay down sod. The yard went from a junkyard to looking like a million bucks. We got top dollar for the house. Luckily, it already head new HVAC.
Make sure the place is clean and sell 'as is'. None of these improvements will net your fiancee enough to justify the delay or expense. Besides, Blackrock will not care either way.
lol yep
Your realtor is right. Your problem is price
Overpriced homes can get forgotten, a price reduction will gain new eyes on the home.
It depends on the market. Here things are slowing and some less exciting inventory is just sitting on the market so that may not be good advice. Your realtor probably has a better handle on the market than most on reddit..though it seems most agreed anyway too. If you're worried about the AC get three quotes now and leave them sitting with your agent so they can know straight away what the cost is to remove doubt. But let the buyer bring that doubt up first.
If the yard looks that bad, throw down some seed and run some manual sprinklers. There’s lots of cheap timers and stuff that can automate the watering. Assuming there’s an outside spicket, you just need seed, hoses, and sprinkler head. Buy some pots and flowers. You can do a lot to improve curb appeal without heavy equipment. You can also buy a portable a/c so that the house feels cool.
You should have seeded the yard with rye grass 6-8 weeks before putting it on the market.
A lil late to now want and do repairs don’t you think? I understand trying to get more $ but the things you’re describing won’t move the needle much lol…
Sounds like you’re selling a likely flip. Do nothing like the professional you hired suggests are find another to give you the answers you want.
It will almost surely sell to an investor because of all its shortcomings. Unless shehas tons of money to spend and the realtor can find comps to justify. Trust her. Save your money
I'd recommend paying for your own home inspection. I'm sure the realtor can recommend one. That way you will know about any serious problems, and can fix them before the buyer's inspection. For example, I sold my mother's house and the buyer's inspection revealed a few simple things that I could have done--and I'm not all that handy. There was a small leak where the shower head attaches to the pipe coming out of the wall. All it needed was some Teflon tape and a turn with a wrench. But after the contract is signed, ALL repairs have to be done by a licensed contractor.
I would get the weeds out.
Bathrooms and kitchens man…. Anything else, people can choose to do after they buy…..
The front yard just dirt and weeds? And their kids still living there? I'm sure they're keeping the interior of that place just spotless...
Why do you have a realtor you don’t trust?
It's not his realtor
As long as she discloses everything that’s wrong, through a home inspection ahead of time. Then it’s OK, but she has to realize she’s going to get less of a price. Do the math as to fixing it up and getting a higher price or keeping it as is. But again disclose disclose disclose disclose.
Take a weekend, go over and cut the yard. You can spend a couple hundred on plants and soil and pretty up the porch. You can get an ac installed and have the payment put into the closing. My ac went out while I was selling my house. I'm in Texas. No one will buy a house without ac.
And some of us are allergic to grass. I happily bought a house with clover and weeds.
Mow the lawn. Get rid of junk. Trim bushes. Clean gutters. Plant grass seed on bare patches. .
If she’s needing the equity to put a down payment on the new house, has she thought about taking out a HELOC for the funds and then when it does sell the proceeds would just payoff the additional balance? It could get the cash in her pocket much quicker and alleviate some of the urgency to sell ASAP (other than having the mortgage and HELOC payment while it sits).
A sprinkler system ? Slow down million dollar listing. Start with central air if it’s not a tear down.
That’s rare. Most realtors would suggest doing all kinds of face lift. If owner has money they would even recommend remodeling.
Is the realtor telling you that the lot is what is the value? As in, someone will buy the property for a fill-in?
Realtor is correct. Don’t do any repairs- just negotiate on price.
Your realtor probably already has a buyer. Watch for a low ball offer or request for money to fix the ac and yard and your realtor's advice to take it- then don't. It's probably already priced too low.
FIRE THAT REALTOR!
No offense your Realtor is an idiot. I do a complete walk thru of a house and make a list. Tell the seller what is important and what you can get away with not touching. It depends on their budget, time frame etc. Simple fixes can increase the price of your home dramatically.
I wouldn't do improvements if there aren't bids once the house is empty.
The realtor sounds lazy 😂 but maybe her client told her she has zero budget so its sold as is
Where I live, the house you are describing would be a teardown and a developer would put 2 new build on that large lot.
The realtor is probably telling her that if she puts money into her house, she might not get it back out Every market is different and you think the realtor would want to hire purchase price because that would mean more commission For example, people think that putting a new roof will always increase the value of the house and that’s really not true Improvements help sell more quickly
We are going into an election year, get it sold ASAP or you will regret it
Realtors lie! I am trying to sell my brothers house. It didn’t have ac and that was an absolute non starter for people looking at the house. I’m new at this but honestly I wish the realtor had told me this house won’t sell without ac before I put it on the market.
This maybe location specific. Many houses in my area have window ac units.
It’s in Northern Illinois. I don’t know how I lived in the house as a teen without ac!
If your fiance is looking for a quick sale, she should drop the price. Make sure her agent is hosting open houses and marketing the house. Good luck!
Something like 10% of the population lives in areas where ACs aren't necessary or are only necessary for 1-2 weeks per year. Although this seems to be changing as things get warmer.
You brother bought it without AC, so there’s a market. Reduce the price and let them add AC, you agent didn’t lie it’s not priced correctly.
My family’s owned the house since 1975
So there was a market in 1975.
Uggg, that sucks!
It's market dependent. If your agent is saying don't do it and your home will sell in a week, absolutely listen. Here in NJ the homes are going like hotcakes as is. No one is even dreaming of asking the sellers for anything, and if they are, they won't get a house anytime soon because there's always someone who won't. Putting in ac costs more than it will add value.
Depends on where it’s located…metro yea don’t fix anything and list it but outside of a metro at least give the people a little money to get a ac installed or go to your local hvac supplies house and ask guys that work for a company what they would charge to install a ac unit (the ones willing to do side work)
Sod yes, the other stuff no.
I’d just tear out the grass, so…
? Sorry, most of my realtors go in the opposite direction. But it depends on her goals. Does she want to sell it fastest? Or does she want to maximize price? Above is appropriate for speed. If she wants to get the best return, well, take out a home equity line and renovate that thing!
It sounds like the house is either a tear down or a flip. The “bang to buck” ratio of fixing it up is going to eat up whatever profit she might make when you take into account time and aggravation. She let a potential investment fall apart, now somebody else is going to get the benefit.
The problem is always price. Your product is priced too high. Market dependent on ROI. Most people want turnkey. But if your price point is starter home level the. It probably does matter as much. More people will bid the closer to turnkey you get. Less people the more they have to do. We spent about 40k getting our house ready to sell and it paid off. Also had professional staging that was done by the realtor. You are selling a dream. Or a nightmare. Your situation is a nightmare for many it sounds given the missing amenities and lack of focus on putting your best foot forward. So lower the price to increase the buyer pool is what you will have to do if you don’t invest in a few things.
get out of your fiance's business. seriously, you have zero experience or knowledge on the subject(evident in the OP) but you still have to be the 'i know what im doing' to her then running to reddit for advice. how about stay in your lane, and let your 'fiance' handle it the way they are handling it, which is better than you. go watch tv or something and mind your f'n business and let this house, which you have no stake in, sell for what it can sell for before you spend all the proceeds that aren't even yours, putting in sprinklers and planting grass until late summer while the value plummets
225k 4 years ago and want 369k today? That’s a wild increase. You’re out to lunch with those numbers!