In the overheated housing market of five years ago, buyers often felt they had to accept homes in woeful condition. But these days, most look at "as-is" properties and say, "No thanks."
Photograph by: Thinkstock, Postmedia News
In the overheated housing market of five years ago, buyers often felt they had to accept homes in woeful condition. But these days, most look at "as-is" properties and say, "No thanks."
"I try to stay away from things that need a lot of work," said Michael Lisa of Chestnut Ridge, New York., who is searching for a home in New Jersey.
"Buyers will tolerate nothing," said Maria Rini, a Re/Max agent in Oradell, N.J. A recent Coldwell banker survey found that 87 per cent of first-time buyers said a move-in-ready home is important to them.
"This is absolutely the story of this market. It seems buyers will pay a premium, engage in a bidding war and even overpay just to avoid buying a 'project' house," said Beth Freed of Terrie O'Connor Realtors in Ridgewood, N.J.
As a result, real estate agents strongly advise sellers to fix up their homes for quicker and more profitable sales.
For example, when Kate Conover recently listed a Franklin Lakes, N.J., colonial, she encouraged the seller to replace the roof and driveway, repair ceilings, rip up carpets and paint interiors.
Paying contractors to do the work cost almost $40,000, but Conover estimated it added well over $100,000 to the asking price.
"There is no question homes that have been spruced up for the market sell quicker," said Conover, a Re/Max agent.
But she recommended against major renovations - such as replacing the kitchen and baths. Most agents agree with that philosophy, saying sellers shouldn't risk spending more than they'll get back in the sale price. That's especially true with major kitchen and bath renovations because they're so much a matter of taste."No matter what you do, it may not be the buyer's choice anyway," said Antoinette Gangi, a Re/Max agent in Woodcliff Lake, N.J.
On the other hand, agents say that major maintenance and safety issues - such as underground oil tanks and leaky roofs - must be dealt with before the home goes on the market, because buyers are unwilling to take them on.
Beyond those kinds of headaches, sellers can make a big difference with simple and relatively inexpensive fixes: painting the walls, getting rid of clutter and pulling up carpets to show the hardwood floors.
And spruce up the front yard and entryway to make a good first impression. In the same vein, Gangi recommends painting the front door if it's looking tired.
"Curb appeal is very important, and the front door is the first thing you see," Gangi said.
Getting rid of clutter (as part of an overall deep cleaning) is probably the most cost-effective step, agents say. When sellers resist this advice, Rini reminds them they'll have to pack up their stuff when they move anyway.
"You've got to clean it out sometime; if you do it now, it's going to benefit you financially," she said.
http://www.househunting.ca/montreal/Buying-Homes/Buyers+fixer+uppers/4731318/story.html
http://www.househunting.ca/montreal/Buying-Homes/Buyers+fixer+uppers/4731318/story.html
