These four seller upgrade mistakes won’t net you a good ROI.
The upgrades I’m going to talk about today may look great in your home, but at the end of the day, they won’t put money in your pocket at closing. Here are the four upgrades that sellers should avoid:
1. Remodeling the second and third floors. If you live in a multi-story home, your money is best spent remodeling the main level. The first level is the first thing buyers see when they come into the house and probably the last thing they’ll see when they leave. The first floor is the most important to those buyers, so the second and third floors will be an afterthought for them.
2. Trim items like crown molding and wainscoting. They look great, but I can’t guarantee that you’re going to get a return on investment. These upgrades are good if you’re planning to stay in your home. They’ll add to your enjoyment throughout the years.
3. Granite countertops. This is another upgrade that looks great and could be a great addition for you if you’re planning to stay in the home. However, if your countertops are in good condition, that money is better spent somewhere else. If you get showing feedback saying your countertops are showing their age, you might want to consider doing what’s called a concession at closing. You’d offer a certain amount of money at the closing table to the buyers so that they can install their own countertops. The pro of doing a concession is that the renovation won’t affect your day-to-day life and the buyers are happy because they get to pick the color and design that they want.
4. Costly upgrades. Our goal is to get you the most money we can at the closing table, so we want you to avoid expensive upgrades like HVAC units and roofing. If they’re functioning the way they should, leave them alone. We can always offer the buyer a one-year warranty which will cover a lot of those high-cost upgrades.
These are general tips and our advice may change a bit depending on the type of market you’re in. In this strong seller’s market, you might not have to do as many repairs. If it were a strong buyer’s market, you might spend a little more money on repairs because you’d want your home to stand out above the crowd.
If you have questions about which upgrades you should make, give us a call. I’d love to talk to you about it. I hope this information was helpful, and enjoy the rest of your day.