One of the most frequently asked questions I receive from home sellers is whether they should spend money on updates or try to sell their house “as is.”
My first response is always, “what do you mean by updates?”
The reason that I ask this question is because I want to know whether a seller is referring to actual updates or items that need to be repaired. The difference matters.
Repairs vs Updates
To begin, a repair is fixing something that is not working (i.e. a light switch/outlet/fixture that doesn’t operate, an appliance not working, a leaking roof, etc) while an update is improving an item in the home that will improve its overall quality, look, and style (i.e. new countertops or cabinets, flooring, light fixtures, vanities, etc).
In many cases, you can actually make a repair with an update. For example, you can replace a broken light fixture or appliance with something much nicer looking, safer, more efficient, and in style.
The reason I clarify this distinction is because, in most cases, I recommend a seller to take care of all known repairs, especially those items that affect the safety of the home and the health of those who live in it.
But sometimes, if it’s something small, you can wait for the buyer’s inspection to be done since it will more than likely come up among other items. Just make sure you disclose it on the seller’s disclosure.
Questions to Ask Before Spending
Whether or not you should spend money on updates boils down to three key questions:
- Will the return be greater than the money spent on the update?
- Will the update help to sell the house faster?
- Do you have the time and tolerance to manage updates while living in the home?
For example, if you spend $10,000 on a kitchen and the comparable sales suggest that you can sell the house for $20,000 more, then it might be worth it to update the kitchen, so long as you have the tolerance to live in the home without a working kitchen! But if spending $10,000 will only increase your sale by $10,000, then you might as well sell it “as is.”
In Summary
If spending money will increase your net profit, decrease your time on market, and you feel like you can manage it, then it could be worth it to make the update!
But if spending money will not increase your net profit, will not help to decrease your time on market, and it sounds like more stress in your life, then I would not advise it.
Now apply these questions to your situation. Not sure how to answer these questions? That’s where I can help!
As someone with remodeling experience, both personally and professionally, I would be happy to review your situation and help you make a plan as you prepare to sell your home! Let’s schedule a time to chat!
