UPDATE!! Is it worth updating my kitchen/house to sell?

[Woodhaven]

UPDATE:  Our former Realtor passed on a request last Wednesday from someone wanting to see the house.  We agreed that they could let them in.  I was there Saturday painting the master bedroom when a realtor came to the house with her client. I was surprised, because I thought they had been there days before. I let them come inside.

 

We received an offer yesterday afternoon!!  I sure hope this goes through!!

 

 

If you lived in the DC area, and your home was old ('79), and hadn't been updated since it was built, would you spend money to modernize the kitchen in order to sell it?

 

We have been trying to sell this house, but our realtor keeps telling us that everyone wants an up-to-date kitchen with granite counter tops.  We are trying to decide we would loose less on the house if we updated the kitchen and the lighting through-out the house and a few other things, or just cut the price a lot more. 

 

It didn't sell last summer/Fall and we need to sell this spring.  Opinions?  I know some of this stuff is regional.

 

We are torn about what to do but need to make a decision fast.  Dh wants to do as little as possible, but I have this feeling that if we don't put in new appliances and granite counter tops and at least paint the cabinets it will be a waste of time and money. But even if we do that, will it be a wasted effort if the whole house isn't updated?

 

The house is not real close to DC - about 45 minutes out, if that helps.  It is a pretty, homey neighborhood with large lots, but older homes with a nice mix of young families and older adults.  Many of the homes have had some updating. 

 

Thanks!!

Edited February 8, 2016 by Woodhaven

[Guest]

Me, I prefer a virgin house with a lower price.  But I have learned over the years that some people can't see past what is there into what COULD be there, and others just need to have things ready-to-go on move-in.  Sometimes the issue is that they need to have the cost of the remodeling built into the mortgage as they can't afford to do what they want after putting all they have into purchasing the house.  

 

Is there any way to build in an "allowance" for these things to be done?

 

One other thing I saw recently was this:  someone paid a kitchen designer to make three plans for what the kitchen and bathroom and living area *could* look like with updating, and those were displayed in the house during showings.  It helped people get past their inability to see possibilities.  It also allowed for three different "visions"--modern, cottage, traditional.  KWIM?

 

In other words...I don't know.  But those might be some options to consider.  

 

[xixstar]

Yes in my unprofessional advice. The kitchen is one room I would consider a deal breaker. The age of the house not a big deal to me but I am in a 150yo house.

 

I don't know what the cost is but if you will get back what goes in and the house finally sells, then it is a win.

[Happy]

What you are finding is that you either need to do it or price the house so someone else can hire it done themselves. I find buyers don't have the imagination to picture anything but what they see. (Sigh) Often they don't have the additional cash or time to mess with remodeling, especially if they are selling a house and moving.

 

I believe most buyers people believe remodeling takes more money and effort than they want. It's so much easier to sell a home in updated condition.

 

I'm starting to tell my clients if they have the choice to freshen the kitchen or put on a new roof, choose the kitchen. Eventually they will have to do both, but the kitchen will get them a contract.

 

 

[Bluegoat]

When you look at people who crunch numbers on these things, they make it pretty clear that you will not get your costs back.  So for me, the issue would be sellig your house at all.  Are you better off to redo it, or sell at a lower price - I don't know.  I don't necessarily trust realtors on such questions though.

 

For myself, I would much rather not have it remodeled - most of the time what they did is not what I would want (remodels to sell almost invariably are dull and predictable), often they destroy features I would prefer to keep, and I usually have doubts about the quality of the work people do to sell a house. 

[Woodhaven]

Me, I prefer a virgin house with a lower price.  But I have learned over the years that some people can't see past what is there into what COULD be there, and others just need to have things ready-to-go on move-in.  Sometimes the issue is that they need to have the cost of the remodeling built into the mortgage as they can't afford to do what they want after putting all they have into purchasing the house.  

 

Is there any way to build in an "allowance" for these things to be done?

 

One other thing I saw recently was this:  someone paid a kitchen designer to make three plans for what the kitchen and bathroom and living area *could* look like with updating, and those were displayed in the house during showings.  It helped people get past their inability to see possibilities.  It also allowed for three different "visions"--modern, cottage, traditional.  KWIM?

 

In other words...I don't know.  But those might be some options to consider.  

 

Thanks for the ideas!!

 

Yes in my unprofessional advice. The kitchen is one room I would consider a deal breaker. The age of the house not a big deal to me but I am in a 150yo house.

 

I don't know what the cost is but if you will get back what goes in and the house finally sells, then it is a win.

 

Yes, it seems as though others feel that way too!  Our realtor wants us to update the whole house, but we simply can't afford to do everything!

 

What you are finding is that you either need to do it or price the house so someone else can hire it done themselves. I find buyers don't have the imagination to picture anything but what they see. (Sigh) Often they don't have the additional cash or time to mess with remodeling, especially if they are selling a house and moving.

 

I believe most buyers people believe remodeling takes more money and effort than they want. It's so much easier to sell a home in updated condition.

 

I'm starting to tell my clients if they have the choice to freshen the kitchen or put on a new roof, choose the kitchen. Eventually they will have to do both, but the kitchen will get them a contract.

 

I agree with you.  We have had a LOT of traffic through the house, and the two offers we received both fell through because they couldn't get their loans in the end.  Our realtor says we must have granite in our neighborhood, and she is probably right.  It is a nice house, but outdated. I can see so much potential to update, but DH never wanted to spend on that and I didn't really care.  But I don't think we can sell it for a reasonable price unless we put some money into it.  I am just afraid it won't be enough.

 

When you look at people who crunch numbers on these things, they make it pretty clear that you will not get your costs back.  So for me, the issue would be sellig your house at all.  Are you better off to redo it, or sell at a lower price - I don't know.  I don't necessarily trust realtors on such questions though.

 

For myself, I would much rather not have it remodeled - most of the time what they did is not what I would want (remodels to sell almost invariably are dull and predictable), often they destroy features I would prefer to keep, and I usually have doubts about the quality of the work people do to sell a house. 

 

Everyone who has walked through our house says it is in need of updates - the kitchen is the main problem, but bathrooms are also outdated.  The realtor says we will have to drop the price a lot, or do some updates.  I don't expect to get all the money we would spend back, but would we loose more by not updating it?  I think we would, but there are no guarantees.  Ugh!  This is so hard to decide!

[Alicia64]

The answer isn't based on feelings of "I love a new kitchen" or I want the original kitchen.

 

You need to look at the comps in your area -- the comparables and see what homes like yours sell for. Then you need to ask yourself how much equity is in your house and how much you need to make when the sale goes through.

 

My understanding -- and I'm not an expert -- is that houses that don't sell are overpriced for their area.

 

Alley

[Bluegoat]

Well, FWIW, granite countertops are one of the reasons I don't like kitchens redone to sell.  Most of the time I don't like them, but it is pretty hard to justify getting rid of it if it is new.

 

Realtors don't always have much imagination or taste.  I was looking at a place a few weeks ago with a high quality, in great condition pink tile bathroom from the early 60's.  Inset niches and fixtures like soapdishes, wall-hung sink with chrome legs, bullnose tile at the top.  Everything someone who likes mid-century design would salivate for. The realtor thought it should be gutted.  It reminds me of all the Victorians that were gutted for similar reasons.

 

Of course sometimes things are just poor quality.  But I'm not sure a bland remodel is the answer.

Edited January 28, 2016 by Bluegoat

[gardenmom5]

it really depends upon your market, and who are the potential buyers.  I cleaned up my mom's house before listing it . . . . the buyer gutted the place and did an extensive remodel.  iow: everything I did was irrelevant.

 

even though we live in a hot market where there weren't many listings at her price point - when shopping for 1dd, I noticed the "needs updating" houses sat.  (but that updating was far more than just a kitchen.) those that were move-in ready - even if they were just cleaned up with neutral paint and carpet - flew and even were the subjects of bidding wars.

[gardenmom5]

The answer isn't based on feelings of "I love a new kitchen" or I want the original kitchen.

 

You need to look at the comps in your area -- the comparables and see what homes like yours sell for. Then you need to ask yourself how much equity is in your house and how much you need to make when the sale goes through.

 

My understanding -- and I'm not an expert -- is that houses that don't sell are overpriced for their area.

 

Alley

 

sometimes it's that simple - and sometimes they simply need so much work they only appeal to flippers, or are *very* "unique" they only appeal to a small niche of buyers.  

 

there was one that looked like a throwback to the 1960's when it was built. . . . orange counters . . . . let me tell you, replacing them with granite would be considered a waste of money because the entire kitchen needed to be redone. along with the paneling that needed to be ripped off the walls, the dropped ceiling with hidden lighting at the edges . . . other than being a time-warp house, it was very well maintained.

 

I wouldn't put in granite counters "just" to sell a house. 

[Bluegoat]

sometimes it's that simple - and sometimes they simply need so much work they only appeal to flippers, or are *very* "unique" they only appeal to a small niche of buyers.  

 

there was one that looked like a throwback to the 1960's when it was built. . . . orange counters . . . . let me tell you, replacing them with granite would be considered a waste of money because the entire kitchen needed to be redone. along with the paneling that needed to be ripped off the walls, the dropped ceiling with hidden lighting at the edges . . . other than being a time-warp house, it was very well maintained.

 

I wouldn't put in granite counters "just" to sell a house. 

 

To me, the thing to do with a time-warp house is sell it that way.  Not as a granite countertop/stainless steel/beige tile house, but something that will be just what some specific person is looking for and can't find anywhere else.

[Woodhaven]

Thank you for all the comments!! 

 

I still don't know what to do.  It is a great house except that it is outdated.  If we do this (updating) I want to change out lighting, paint and update the bathrooms a little too.  It has a 2nd kitchen that isn't so old, but could use better appliances too.  I really LOVE the wood flooring in the house.

[StephanieZ]

Give us a link to your realtor.com listing, and we'll make specific suggestions! :) 

 

I lived in NoVA for many years, so I'm pretty familiar with the market.

 

Personally, I'd get a new realtor. 6 months is MORE than fair. 

[madteaparty]

I'm getting ready to list, expecting two years to sell, and I am not doing any upgrades *for purposes of selling*. My reasoning is, I'm selling this particular house, not another version of it, I've done so many upgrades in the last couple of years (because I wanted them, and they were quality, not a flip the house type upgrades- I didn't expect to want to move). I'd rather the price reflect the house and if they want a new kitchen they can put the very one they want in. It's a 40s farmhoise, it's not meant to come with upgraded kitchen. I also don't like granite. I'd feel bad buying a house with a new kitchen and having to rip that out. But I''m odd.

Lastly, mine will take a while to sell. Why sink more real money into it today, with the hope of closing two years from now?

[StephanieZ]

ps. Check out home depot's prefab granite counter tops with integrated sinks for bathrooms. Super economical and easy DIY if you have standard vanity sizes. Gel stain the vanities and add a new granite/sink top and faucet, all under $300 or so per bathroom for a cheap and substantial upgrade. :) 

[The Girls' Mom]

Personally, I would update the kitchen, but nix the granite.  They make some gorgeous formica now that is really nice, and a whole lot cheaper. (really!  We have some in our kitchen and people don't realize it isn't stone most of the time) It can give your kitchen an update without breaking the bank.  

 

We bought a house (a few houses back) that was like a 1960's time capsule.  And not the cute stuff.  There was paisley carpet in the KITCHEN.  Anyway, it had sat on the market forever because of that kitchen and the shag carpet in the rest of the house.  We got it for a steal because of that mess.  We lived there a while, fixed the kitchen up (painted cabinets, put in vinyl floors, and replaced the countertop with an updated formica) and then sold it within a few months of listing it.  

[The Girls' Mom]

Oh, another thing we updated was replacing the hollow wood doors with masonite paneled doors and painting all the trim white.

[gardenmom5]

To me, the thing to do with a time-warp house is sell it that way. Not as a granite countertop/stainless steel/beige tile house, but something that will be just what some specific person is looking for and can't find anywhere else.

It sat a LONG time.

We have a new construction mc mansion down the street. They've dropped the price once, and need to do so again. It's not the price - it FEELS like a spec home. And a potential view that was flagrantly ignored with where the house was sited. I've seen other houses by this builder that felt more upscale. They generally sold faster -but with less land they were cheaper. They have spent a bit on advertising when they should have put it in the finishes.

I've also seen flips that had nicer finishes

[Tsuga]

As a homebuyer in a high COL area, we can't afford a fancy kitchen.

 

But apparently everyone else can. Honestly it doesn't seem to hurt.

[matrips]

I say yes. It's a unique area that seems to really require it. but get several opinions from different realtors. Here's our experience:

We sold our house a few years ago. It was over 75 years old. We lived in NoVa within five miles of DC, and I thought our house was quite fine as it was, but our realtor (we interviewed several until we found someone who truly seemed to like our house) said the people looking in that area wanted a move in ready house, done like they see on hgtv. They knew what they wanted, looked for it and had the money. All realtors we met said to update it ( and it had been updated within the past five years! Just not very upscale apparently. It hadn't been important to us.). Our realtor had a stager who came in and told us what to do. She supplied the labor and picked everything. We just paid. We put in granite, got a new (used ) stove so all the appliances matched. They redid the bathroom floors, regrouted tubs and showers, took out all the medicine cabinets and replaced with decorative mirrors, replaced not only the bathroom lighting but even the hall overhead lights! I mean who pays attention! Then they repainted most rooms and had us refinish some of our floors. We emptied half the house into storage and when we came home from 'staging! Day, we found more of our stuff piled up for storage. Even our bedding and towels! But our house looked gorgeous! Not even close to what it did. I always loved our home, but this was wow, it looks awesome. I was amazed at how affordable it all was, considering the work done. and it was under contract with multiple offers with escalation clauses within the first few days. It sold well above our asking price. So worth it! I truly believe that our house in the existing nice to us condition would not have fared nearly so well. The transformation was wonderful. And so was our realtor and stager.

On a side note, when we looked for our next house, even though we personally knew how a house could be transformed, the updated homes that were staged were so much more appealing! It was easier to picture living there and seemed more welcoming, as opposed to facing projects.

[matrips]

And if you want to interview another realtor, I'd be happy to pass ours along. The fact she worked hand in hand with the stager was awesome. And the stager had her own laborers and stuff. I didn't have to make the arrangements.

[Katy]

I'd update.  I grew up with parents that bought older houses and updated them - sort of a slow flip.  DH didn't, and he always prefers to buy houses that are already done because he cannot imagine the after.  He just can't.  Over the years he's come to trust me when I say I have a plan, but he literally can't imagine that a bathroom remodel will look good until the grout is done.  Even missing grout makes the whole bathroom look horrible to him. I think a lot of people are like that, or they're just busy and they want move in ready so they don't have to live through a remodel.

[wapiti]

I think you need to determine an appropriate selling price with a new kitchen and compare that, minus the cost, to an appropriate selling price as-is.  An appropriate as-is price would presumably be attractive to bargain-hunters and people looking to do the kitchen their own way.  Can't expect an as-is price to compare to other homes with new granite.  The key is in the pricing.

[Shellydon]

Either seriously drop your asking price, or put that money into remodeling.  If the comps show that your house is priced similarly to houses that are updated, you'll need to drop your price by $40K or more to move it. 

[Katy]

Pricing is a thing, but if you can do a $12K remodel and get $40K more, why not?

[Bluegoat]

As a homebuyer in a high COL area, we can't afford a fancy kitchen.

 

But apparently everyone else can. Honestly it doesn't seem to hurt.

 

I think this is an important point.

 

Our house when we ought it hadn't been updated since the 70s - it was built in about 1950.  And it does need it, as what they did was poor quality.

 

We've done a little.

 

We couldn't have afforder an upgraded house in our area.  We bought here because the house has good bones, a great yard, good bus access, and close to shops.  All the things we can't change.  Upgrades can get done over time.

 

There will normally be people who would like to buy a house that is a little cheaper.

[G5052]

I say yes. It's a unique area that seems to really require it. but get several opinions from different realtors. Here's our experience:

We sold our house a few years ago. It was over 75 years old. We lived in NoVa within five miles of DC, and I thought our house was quite fine as it was, but our realtor (we interviewed several until we found someone who truly seemed to like our house) said the people looking in that area wanted a move in ready house, done like they see on hgtv. They knew what they wanted, looked for it and had the money. All realtors we met said to update it ( and it had been updated within the past five years! Just not very upscale apparently. It hadn't been important to us.). Our realtor had a stager who came in and told us what to do. She supplied the labor and picked everything. We just paid. We put in granite, got a new (used ) stove so all the appliances matched. They redid the bathroom floors, regrouted tubs and showers, took out all the medicine cabinets and replaced with decorative mirrors, replaced not only the bathroom lighting but even the hall overhead lights! I mean who pays attention! Then they repainted most rooms and had us refinish some of our floors. We emptied half the house into storage and when we came home from 'staging! Day, we found more of our stuff piled up for storage. Even our bedding and towels! But our house looked gorgeous! Not even close to what it did. I always loved our home, but this was wow, it looks awesome. I was amazed at how affordable it all was, considering the work done. and it was under contract with multiple offers with escalation clauses within the first few days. It sold well above our asking price. So worth it! I truly believe that our house in the existing nice to us condition would not have fared nearly so well. The transformation was wonderful. And so was our realtor and stager.

On a side note, when we looked for our next house, even though we personally knew how a house could be transformed, the updated homes that were staged were so much more appealing! It was easier to picture living there and seemed more welcoming, as opposed to facing projects.

 

This sounds like what we just did to a relative's house.. He had bought in the 1970's and had done almost nothing to it at all.

 

Our realtor was struggling to get inventory and had time in December, so she did all of the design work and worked closely with the contractor. This is an in-demand area.

 

We used a lot from the Habit for Humanity Restore Store and basics from Home Depot/Lowes.

 

They did a new countertop and sink with very basic granite. The cabinets were deep-cleaned and updated with new hardware.

 

We also replaced all of the bathroom fixtures with white, basic ones and retiled with subway tile.

 

All of the carpeting was taken up, the floor sanded for a distressed look, and it was stained and sealed with a dark stain.

 

The whole thing was repainted.

 

Then the stager came in with just a few basic pieces for the living room, dining room, and master bath.

 

This took about six weeks total.

 

We did far beyond my even the realtor's expectations. We set 10 days for offers and then picked the best one. In that market, doing some basic renovation truly paid off.

[linders]

Re: buyers with lack of imagination...they may have the imagination, but don't want the hassle.

 

A few years ago DH was transferred across the country and spent several months looking for a house. He grew up working with his dad, a contractor, and I did a lot of working updating our old house, and we both were pretty good at imagining "what could be" and estimating the potential cost. But even when the selling price was low enough to balance renovation costs, in the end we elected not to buy something that needed updating. DH was working very long hours, I was homeschooling and getting settled in, and we wanted weekends to explore the new area. We did not want to deal with the disruption and time associated with any major renovation.

[DawnM]

What you are finding is that you either need to do it or price the house so someone else can hire it done themselves. I find buyers don't have the imagination to picture anything but what they see. (Sigh) Often they don't have the additional cash or time to mess with remodeling, especially if they are selling a house and moving.

 

I believe most buyers people believe remodeling takes more money and effort than they want. It's so much easier to sell a home in updated condition.

 

I'm starting to tell my clients if they have the choice to freshen the kitchen or put on a new roof, choose the kitchen. Eventually they will have to do both, but the kitchen will get them a contract.

 

Unfortunately, this is true.  We have imagination and we moved from a market where run down things still sold within a week, but here, on the East Coast, in a very different market, people want everything finished and "turn key ready" which means we are in the mode of getting things DONE around here for a Spring sale.

 

I wish we had put in new cabinets but the realtor assured us that painting our cabinets and putting new countertops and flooring was sufficient.  I sure hope so because it is too late now to put in new cabinets.

[My4arrows]

Re: buyers with lack of imagination...they may have the imagination, but don't want the hassle.

 

A few years ago DH was transferred across the country and spent several months looking for a house. He grew up working with his dad, a contractor, and I did a lot of working updating our old house, and we both were pretty good at imagining "what could be" and estimating the potential cost. But even when the selling price was low enough to balance renovation costs, in the end we elected not to buy something that needed updating. DH was working very long hours, I was homeschooling and getting settled in, and we wanted weekends to explore the new area. We did not want to deal with the disruption and time associated with any major renovation.

This! When we purchased our first home together, my fil walked in and was so mad at us for buying it since he was one who couldn't see what it would become. We on the other hand fixed it up and he can't believe now we're leaving since it's a beautiful home. Now we are current home hunters and we know what we can do, but with four young children, homeschooling, moving, I just don't want to deal with it. I want to move in and get settled, not have a major project like a kitchen to tackle.

 

I'd price low to reflect the needed updates unless you will redo the kitchen and Bathrooms if needed If redoing the kitchen. I wouldn't go overboard. A nice backsplash can be inexpensive and update a lot , appliances and then updating hardware and countertops. For bathrooms counters and hardware for sure and replacing anything else that just doesn't look nice (faucets that may have stains).

[solascriptura]

You don't have to do anything, but you have to be willing to wait longer to sell at a lower price. If that's okay, price your house low and go for it.

[Carrie12345]

Our house is far from high end, but we did choose to spend a little more on a "fresh" look vs. the paneled/browns of the less expensive houses we saw.  We walked through all the other houses with big dreams about what we could do, but we were smart enough to know we'd never actually DO it with 3 small children in the house and all the new expenses that would come with ownership.

 

Even with the "updated" house, we've barely put a dent into the small plans we had nearly 11 years ago, lol.

[MysteryJen]

We are house hunting in a hot market now. Houses that have redone kitchens (anywhere from 1920 to 1980 houses) are commanding more money and getting more traffic/offers. There is nothing more annoying to me as a buyer than walking into a house priced like all the comps and seeing a 50 year old kitchen. Just happened a few days ago...

 

If the kitchen needs a total remodel, price it like you know that. You will probably get more traffic.

[sophiasapientia]

What is your probable return on investment?  If the upgrades will dramatically increase the value of your home, the hassle is probably worth it.  If it will be a financial wash and you aren't in a huge rush to move, major renos may not be as critical.  

 

I think some of this is definitely regional.  Where I live, in Michigan, our house is just *finally* about back up to what we paid for it 14 years ago.  Our house was built in 1978, in a neighborhood that sounds a lot like yours, and we have been cash flowing improvements over time.  The bathrooms are being renovated right now, actually.  The kitchen will be a few years down the line.  But we are doing this for our personal use/enjoyment.  If we were looking to sell right now, we'd probably just do fresh paint and maybe carpeting in a couple rooms that need it.  The house might sell a little quicker but we would not see a financial return on any major work.

Edited January 29, 2016 by sophiasapientia

[TranquilMind]

Well, FWIW, granite countertops are one of the reasons I don't like kitchens redone to sell. Most of the time I don't like them, but it is pretty hard to justify getting rid of it if it is new.

 

Realtors don't always have much imagination or taste. I was looking at a place a few weeks ago with a high quality, in great condition pink tile bathroom from the early 60's. Inset niches and fixtures like soapdishes, wall-hung sink with chrome legs, bullnose tile at the top. Everything someone who likes mid-century design would salivate for. The realtor thought it should be gutted. It reminds me of all the Victorians that were gutted for similar reasons.

 

Of course sometimes things are just poor quality. But I'm not sure a bland remodel is the answer.

I love the pink bathroom and am the proud new owner of one.

 

I did upgrade my baths and kitchen cabinets with granite and stainless bar pull hardware and will be selling soon. New stainless appliances and fresh paint are imperative if you don't want to sit on the market. Pushing the boundaries of top dollar is my goal. And new super modern light fixtures. Amazon!

 

I had very good luck with stick-on stainless backsplash in a couple of houses along with new bar pulls. A lot of bang for a few hundred bucks.

Edited January 29, 2016 by TranquilMind

[Lolly]

Here, you are better off dropping the price. People who are doing renovations to sell are not getting back what they put in. People who are buying houses to flip them (live in while flipping) are ending up staying in the homes because they cannot make a profit after the flip. (Two of these on my block right now. It doesn't hurt that the neighborhood is a nice one for the retirees who are doing the flipping.) I think they key is that the price reflects the house.. Many times homes that need renovations are priced the same as the homes that have them. I would try dropping the price and seeing if it will sell. If it doesn't, then I would do the renovations and raise the price to reflect that. You can't undo the renovations once they are done.

[Bluegoat]

I would try and find some more local info on whether renos you would do will be returned to you in the sale.  Nationally, the stats say no - you will spend more than you make on a kitchen reno.

 

Your realtor, of course, is only personally impacted by the final sale price, not how much you spend before that.

[OneStepAtATime]

1. Take tours of comparable properties in your area to see what your competition is in person.  Be open minded, not defensive.  Try to look with unbiased eyes.

 

2.  Get at least a couple of estimates for cost of upgrading the kitchen and bathrooms.  Get a higher end price and a lower end price from both companies (granite vs. a cheaper counter top material for instance).  Make sure you are comparing apples to apples. That way you have more solid numbers to work with, not just guessing.

 

3.  See what comparable houses have actually sold for in your area and try to determine whether they had updated kitchens and bathrooms.

 

4.  Crunch numbers based on the above results.  Without an upgrade on the kitchen and bathrooms you are almost certainly going to have to drop your price if you need to sell by May, maybe thousands or tens of thousands of dollars.  On the other hand, you might be able to keep your current asking price if you do a "lipstick" job, not a full upgrade.  Then again, your original asking price may be way too high to begin with, so even a full upgrade might not be enough.  Get out there and do some solid research.  You need numbers.  I have had some great real estate agents but I frequently had to do my own research because they overpriced my house.  

 

5.  Yes, most buyers either have little imagination or they are not really in a position to do major work on a newly purchased house (either financially or emotionally or time-wise, etc.).  However, that doesn't mean that you have to have all the high end materials to get a sale.  If the house doesn't need immediate work, looks pretty nice and has lots of potential, you may get more buyers.  That is why I suggested the "lipstick" approach.  You might get buyers who can live with the o.k. upgrades you make for now and they can plan to do all the bells and whistles upgrades later, to their own tastes.

Edited January 29, 2016 by OneStepAtATime

[Woodhaven]

Thank you all!  There are lots of great comments - all very helpful!

 

The house is off market at the moment and we no longer live there.  We have dropped our price, but we keep hearing that people want updated, move-in-ready houses.  No one has the time to do the updates themselves since in NOVA people are very busy commuting and working.  You have given me great ideas and something to think about.

 

We probably do have to just go ahead and upgrade things in order to sell it, but I am afraid of spending a lot that we won't get back. I guess there isn't really a way to know for certain.  We will probably talk to more Realtors before we make a decision.

 

I really appreciate all the thoughts, ideas and experiences you have shared!!

[Woodhaven]

1. Take tours of comparable properties in your area to see what your competition is in person.  Be open minded, not defensive.  Try to look with unbiased eyes.

 

2.  Get at least a couple of estimates for cost of upgrading the kitchen and bathrooms.  Get a higher end price and a lower end price from both companies (granite vs. a cheaper counter top material for instance).  Make sure you are comparing apples to apples. That way you have more solid numbers to work with, not just guessing.

 

3.  See what comparable houses have actually sold for in your area and try to determine whether they had updated kitchens and bathrooms.

 

4.  Crunch numbers based on the above results.  Without an upgrade on the kitchen and bathrooms you are almost certainly going to have to drop your price if you need to sell by May, maybe thousands or tens of thousands of dollars.  On the other hand, you might be able to keep your current asking price if you do a "lipstick" job, not a full upgrade.  Then again, your original asking price may be way too high to begin with, so even a full upgrade might not be enough.  Get out there and do some solid research.  You need numbers.  I have had some great real estate agents but I frequently had to do my own research because they overpriced my house.  

 

5.  Yes, most buyers either have little imagination or they are not really in a position to do major work on a newly purchased house (either financially or emotionally or time-wise, etc.).  However, that doesn't mean that you have to have all the high end materials to get a sale.  If the house doesn't need immediate work, looks pretty nice and has lots of potential, you may get more buyers.  That is why I suggested the "lipstick" approach.  You might get buyers who can live with the o.k. upgrades you make for now and they can plan to do all the bells and whistles upgrades later, to their own tastes.

Great ideas!  Where do I go to research what houses have sold for?  We already have one estimate on remodeling from someone our previous Realtor recommended. I'm not sure who to go to for another estimate, and will research that.  

 

Thanks! 

[G5052]

Great ideas!  Where do I go to research what houses have sold for?  We already have one estimate on remodeling from someone our previous Realtor recommended. I'm not sure who to go to for another estimate, and will research that.  

 

Thanks! 

 

Zillow is a good source. Type in your address. Professionals warn that the estimated prices are off, but it gives good historical information. We listed my relative's house at the low end for houses in that particular neighborhood, and sold on the high end. The realtor thinks that even though our renovations were basic, having a move-in ready house was the driver there. Everything is clean and nice-looking even if the choices were not very fancy.

 

Every area is different though. The house across the road from us (a different metro area than my relative) has been for sale for months with very few even looking at it. They've redone the kitchen twice and everything is high-end finishes. But the lot is very odd-shaped, it has a smaller garage, and IMHO they're overpriced. 

Edited January 29, 2016 by G5052

[slackermom]

How bad is the current countertop, in terms of age, material, and damage (stains, scratches, chips)?

How much countertop would you be replacing?

I am at Lowe's shopping for counters right now. I can spend $25 per square foot for laminate, $35 for basic solid surface, $50 and up for granite.

If the countertop is bringing impressions down, I say replace it, but not necessarily with granite. I am leaning towards solid surface for myself. At the low end, I have only 2 color choices, but they are nice looking.

Do paint, and change out fixtures like faucets that look like they could use a face lift. Maybe new knobs on the cabinets. No need to spend a lot. Just new, clean, shiny. 😀

[Crimson Wife]

For us, it was easier to qualify for a slightly larger mortgage than it would've been to qualify for a smaller mortgage + a loan to renovate the house. So we only looked at houses that were "move-in" ready and did not need any renovations.

 

Stupid because the total amount of debt would've been the same, but for whatever reason lenders are less skittish about approving mortgages than other types of house-related loans.

[Lolly]

Also look at Home Depot for counter tops if you decide to redo. They usually have some granite on sale at a price that is comparable to laminate. Waiting on mine to come in as we speak. And, yes, we went with granite because there was very little difference in price between it and laminate. I was floored.Wait, no, topped! The style offered discounted varies, but they do usually have one at a low rate.

[Sandragood1]

I'm in the NoVa area. I think the question is, who is your market? With so much coming and going in this area I think folks don't have the time or energy to plan and live through remodels.

 

So if someone is interested in a home in your area they will look at your house for $X which needs $Y in upgrades but is livable as is. Then they'll look down the street at a house for $X+Y+ Z (even more than your cost plus budget for redo). Lots of people here pay for convenience.

 

Taking another tack, there is salability. If everyone else in the market has upgraded few will even be attracted to your home because it doesn't meet the benchmark for the area. A new coat of paint and professional staging will help but if your kitchen is the only 40 year old kitchen why would people buy it? The price would have to be AMAZING.

 

In short, I'd upgrade with an eye to upscale style. You'll make more money in all likelihood. You haven't been swamped by bargain huntersso I doubt you will be in the next couple of months. Open houses begin in March and really get rolling in April. Do it now to be ready.

[Tanaqui]

Just poking my head in to say a. I'm surprised 1979 is considered "old"* and b. I personally loathe granite countertops when I see it on HGTV and the like. I'm so sick of it, and if I were buying a house I'd be really annoyed if I was expected to pay more because the owner had ripped out perfectly serviceable countertops to put in granite. But, you know, that's me. I may not be the sort of person you're selling to.

[wapiti]

Where do I go to research what houses have sold for?

 

If you are still with your realtor, he or she can provide a list of comparables.  I might ask the realtor to come up with two lists because it would take some knowledge of interior conditions to separate the homes already updated from the fixer-uppers.

Edited January 29, 2016 by wapiti

[Woodhaven]

Thank you for all the great advice!!  We have received an offer even while it was off market!  Hope this is it!!

 

This would be an answered prayer!!

Edited February 8, 2016 by Woodhaven

[clementine]

Hope it goes through smoothly!  Congratulations!

[Spryte]

Congrats!!!