We are often asked what are the best things we can do to get the most value for our home when the time comes to sell it? Beyond the obvious, which is keeping it clean and de-cluttered, we've come up with our top 3 list for best things to do and or consider when selling your home.
This is part of a continuing series of articles and helpful tips and insights into helping you sell and market your home by Nick Santoro and Joe Santoro of Personal Property Managers. Personal Property Managers specializes in real estate sales and marketing, home downsizing, content clean out and removal and estate sales, and services Pennsylvania and New Jersey.
1. Consider updating your bathroom instead of the kitchen
Most conventional wisdom points to remodeling your kitchen when selling your house, however when we looked at remodeling surveys and returns on investments what we found is actually it's the bathroom remodel that adds the most value to a house.
What we found is that it makes the most sense because with a bathroom remodel functionality is being added to the house whereas kitchen upgrades are often more about fashion.
According recent remodeling studies a mid-range $3,000 bathroom remodel results in a $1.71 increase in home value for every $1.00 spend on renovation. We also found that when people come to stay with you, you're going to be a lot happier that you have a nicer bathroom than kitchen. Kitchen renovations offer among the lowest returns on investment. Both mid range and upscale work on the kitchen recover only about half of their investment.
One word of caution... don't invest too much money in the bathroom; upscale $12,000 bathroom upgrades result only in an $0.87 increase in home value for every $1.00 spent.
2. Consider the selling season and time of year when your remodel and sell
Home sales reach their peak in June, during the last week of that month residential real estate transactions are 40% higher than average. So, the key question is... when is the right time to list your home?
The home season starts to crank up in January and February, but to get the most bang for your buck you might want to list your house during the last two weeks of March. There's a sharp spike in visitors making contact with real estate agents beginning in mid-April and continuing into July.
Selling in the last weeks of March, before the peak in agent contacts and after the peak of newly listed homes in February puts your home in the sweet-spot where it's likely to be seen quickly and not get lost within a flood of new listings.
3. Understand Psychology when properly pricing your home
Ending your home price in a ‘9' is incredibly beneficial. According to several national associations of realtor studies, if you were going to sell your house for $150,000, just pricing it down by $1000 and selling it for $149,000 ends up in you making $2,175 more than you would if you priced it at $150,000. The '9' dynamic works for houses at all price-points.