Does Your House Need Updates?
There are a number of reasons why homeowners consider selling their house, anything from “the kids are gone and we don’t need this much space” to “I just need a change”. Regardless of the reason, thousands of homes are sold yearly in Texas. Each of those sellers have probably put some thought into how to maximize their home’s worth. Have you ever wondered what causes the house next door to sell for thousands of dollars more than the one across the street?
Should I Sell Through an Agent?
As mentioned above, there are various reasons for wanting to sell your house. Listing with an agent on the MLS might be the right path for you to take, especially if you contract with an experienced, reputable agent. There’s no doubt a good agent can be worth their commission and partnering with one can result in selling your home for more. Keep in mind, that expertise comes at a cost: the commission is paid by the seller out of their pocket. Many Real Estate Agents are trained in various marketing and sales techniques to help sell the house as quick as possible given current market conditions. Another part of what an agent does is advise the homeowner on ways to get the most return on their investment, the house. In this regard, he/she will provide tips on what should be replaced or repaired, what areas need a makeover, and how to stage your furniture (if applicable).
Is it worth the effort?
It’s no secret that one of the most stressful times in an adult’s life is selling his/her house. Coordinating actions with real estate agents and title companies while making sure to go through each step in the proper order to ensure a smooth transaction can often compare to a second job. There are times when chasing documents and following up with professionals can take hours of time away from your day, including your evenings and weekends.
Additionally, listing the house with an agent can add to an already emotionally and physically demanding time. Though listing with an agent can often result in a beneficial outcome, they can’t work miracles. Having to keep the house in a constant “show-ready” condition takes time and effort, much more so than most homeowners are used to devoting to their house – even those on the tidier side. Furthermore, if the property needs repairs, has strong and offensive odors, or is just not attractive to potential buyers, then the house may not sell until those issues are corrected.
What’s the Risk Involved?
It is easy to assume there would be no risk involved in undertaking a home improvement project. “I’m investing in something that will make the house better, what could go wrong?” It is a gamble to undertake a home renovation project in the name of building equity, as well as a time investment. Often times a homeowner will start a house remodel and end up opening a Pandora’s box. What began as a simple project could expose problems of which you were previously unaware. Now that you know of these issues you either have to fix them, or make any potential Buyer aware of them through the Seller’s Disclosure. Either option probably will cost you more money than you initially expected by causing you to come out of pocket to fix the issues, or limit the pool of buyers who are now willing to undertake your “Project house”.
Repairs – How Much Do They Really Cost?
There is no doubt that agents are valuable when selling a house, but their tips and recommendations stop at that. It is up to the homeowner to do the work, or hire someone else to do it. Working with a contractor is just like hiring any other professional. There is a large degree of trust placed in them and no guarantee the person or company you hire will complete the job in a timely and satisfactory manner. We’ve all heard horror stories of contractors running off with a person’s money without finishing a job, or doing poor quality work and not fixing mistakes. If and when this happens, it is the homeowner who has to pick up the pieces, or risk getting even less money for the house by putting an incomplete renovation on the market.
One thing to also consider is the time “investment” this project will end up costing you. Time is something that is easy to overlook, especially when starting a DIY project. Homeowners see the “simple” math and convince themselves that the DIY route is better for them because it’s cheaper and will put the most money in their pockets. However, you may wish to consider these points:
- Construction timeline – ALL things being equal, on paper you may see more money in your pocket when the house sells if you do the repairs yourself. However, this implies you can do professional quality work, and complete the project in the same amount of time that an experienced contractor would.
- Materials cost – contractors generally have agreements with building supply stores and have access to bulk pricing or professional discounts.
- Holding costs – There’s no doubt a Contractor (and his/her crew) can get the job done faster than any homeowner working solo. What does this mean? It will take longer to finish the project and end up costing you more by delaying the sale of your house. The longer you own the house, the more Principal, Interest, Taxes, and Insurance you are responsible for paying.
YOUR Time – If you plan on doing the work, you should ask yourself, “How much is my time worth to me?” Using realistic time estimates, you may come to learn that the “savings” you are expecting based on doing the work yourself may translate to a less than minimum wage savings per hour. Does the idea of making less than minimum wage sound reasonable to you?
What’s next?
If you find that selling your house is indeed the right solution to your situation, it is wise to seek out professionals for advice on what areas need improvement, and to complete the work. Just remember that even if you hire a company to complete the renovations for you, there’s still a good amount of risk to you, the homeowner. Ask yourself: “Can I afford to invest the time and money required to get it ready to list on the MLS? Better yet, do I want to spend my time and money that way…?” If there’s any doubt about how to answer that, call us at 512-213-1500 for a free and confidential consultation. We’ll assume all the risk for you and give you a guaranteed offer for your house, as-is.