Criterion: “Context, Context, Context” (and Consistency)
One of the biggest decisions would-be Sellers have to make — besides choosing a Realtor and a list price 🙂 — involves what to spend money on getting their home ready for sale . . . and what not to.
The trick to making that decision is applying the right criteria.
Mine: cost-benefit, plus some old fashioned common sense.
Case-Specific
So, Sellers are well-advised to tackle any repair-or-replace items flagged by a city inspection.
That’s because for every $1 in repairs that Buyers assume, they’ll typically deduct $4 – $5 from their offer.
Similarly, in a home with all newer windows, it makes sense to spend $1,000 replacing one damaged window.
That’s because bringing the one substandard window up-to-snuff lets the seller trumpet the condition of all the other windows — a capital item that can cost $20k to more than $50k, depending on the size home.
Goal: Eliminating Achilles Heels
Now, however, imagine that all the windows are older, and — while in working order — in relatively poor condition.
Simply replacing one window isn’t going to alter Buyers’ perception that the windows are dated.
Instead, Sellers are better off pricing for that (read, discounting).
Similarly, I wouldn’t put a new Kitchen in a home that is otherwise dated.
That’s because, instead of giving the seller credit for the new Kitchen, Buyers are invariably going to focus on everything the Seller didn’t address (e.g, the Baths, mechanicals, flooring, wall coverings, etc.).
Call it the residential real estate version of “no good deed goes unpunished.”
