I’m lucky and I’m living the dream. I love my Prep ‘n Sell ™ and RENOmagic™ Home Renovation Business. Every day we get to help families see more money for the homes they want to sell, or build them the great environments that they have always dreamed of. Here is the basic of home renovation for home sellers.
Whether prepping a home for resale, or facing a first time ‘reno’, our experience is that most homeowners find the prospect somewhat overwhelming. Where do you start? How much do you spend? Should you stay or leave? Do you use professionals? What are the best materials? All daunting tasks for a person or couple in transition.
Many people put their home on the market without any improvements whatsoever, assuming that the buyer is not necessarily looking for a dream home – just not a ‘wrecker’. This happens a lot with estate sales. Estate homes generally need attention, as an aged property may need to be freshened to meet current standards of acceptance and desirability, but, anxious sellers rarely get the maximum if they rush the sale.
Speaking from my experience
The problem usually starts when all members of the family get involved, and have different ideas about how to market the family home. It can get complicated. Some are interested in fixing it up to maximize the return, and others just want to cash out as soon as possible. Too many people lose tens of thousands, and even six figure payouts due to hasty decisions.
Dave’s Toolbox TIP: If cash is tight, this is one time where borrowing funds or using a line of credit or company financing can make a lot of sense.
A client once called me to take a look at her father’s home. She had been living abroad for 10 years, and she returned home to help her 85 year old father into a nursing home. The family home needed some serious work, and we prepared a proposal for her. The father was reluctant to do anything to change what he’d been used to, so all we were able to do was clear out the contents, clean it up, and deodorize.When I saw what it eventually sold for, I realized that they could have easily doubled or tripled their investment from the sale with our recommendations.
If there is anything that I have learned over the years working the Prep ‘n Sell™ and RENOmagic™ program, it’s that the way you live in a house is not the way you sell it. But, if someone can imagine themselves living in the enticing picture that you have created, you are well on the way to having it sold – for good money.
I have also experienced situations where the real estate agent and the vendor have said to me; “We have interest from a builder. He might buy it and fix it up, so we aren’t going to do any improvements”. Well, that interest had better work out, because the builder / investor market is rarely 30% of the total market.
You could be shrinking your potential buyer market by 70 to 80% travelling this path. And, many in the overall market will not buy a home needing any work – even painting.
Some have lived through a renovation before, and now that they are older and have more money, they can be pickier, and demand a house that is ready to move into. Many buyers will pay quite a bit extra for a home that is 100% complete. The people that make their living getting you money for your house (everyday) will have lots of advice for you. Listen to the home stagers, real estate agents, and property inspectors; they have lots of experience and real results to share.But, most of them will also be in the business of collecting fees from homeowners, so their prime motivation may not always be to get you the maximum dollar for your home.
The Prep’n Sell Way
Prep ‘n Sell™ looks at projects from the other side of the cash register. Our entire company model is based on holding the property back from listing until it’s in maximum profit position. Prep ‘n Sell™ Home Service Consultants are ROI experts, and we know what works to raise a property’s desirability and bring the highest return on investment.
In the process of acquiring a listing, real estate agents will come and give you their opinion on your home resale value at no cost. This is standard industry practice. As you listen to his or her presentation, listen carefully, and understand that their goal is to secure your listing before leaving. That is their business. To Real Estate Agents, new listings are an opportunity to put up a sign, have a few open houses and start marketing the property, and, the sooner the better.
In a hot market, little effort is required to get buyer interest. In the rush to get your listing and get your home on the market, some realtors may even suggest that buyers will overlook your cracked counter top, old wallpaper and overgrown back yard. What seldom comes up in conversation, is how all this ‘overlooking’ also comes with lower offers.
Just listing the property and doing very little to prepare your home for resale may not work out the best for you and your family. If you invest a bit to get the return you desire, you won’t have future regrets about leaving money on the table and walking away from it forever. Additional home resale dollars may be the cheapest tax free money you will ever make.
– David Collier (Author & president of Prep’n Sell)
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