These three questions will help you take the temperature of the real estate market in your area and assess the competition.
How hot or cold is the market in your area? Are homes being snapped up after the first open house, or are they languishing on the market for months? Are homes being sold at or near the asking price, or for much lower? Are open houses bustling with people, or is attendance sparse? Get a feel for the market in your area by talking with your Realtor and checking local listings. If it’s a seller’s market, you may be able to get away with doing fewer repairs and modifications before selling, and still have good results — in a buyer’s market, expect to do more work to make a positive impression on buyers.
How fast are you looking to sell? If you need to sell your home immediately — say, because you have already committed to buying another home or need to move because of work — it is in your best interest to do everything in your power to ensure a quick sale at the highest price possible. If you have more flexibility, and you feel uncomfortable making too many pricey changes to your home before selling, it may make more sense to focus on cleaning, de-cluttering and making small cosmetic changes (like painting) — particularly if the market is hot and favours the seller. If you aren’t getting the offers you would like, you can always decide to spring for a few bigger changes later and relist your home.
What is the condition of comparable homes on the market? It can be quite helpful to know a little about the homes that buyers in your area are looking at. Examine photos of homes for sale in your area, and make a note of how the other homes compare to yours. Are the kitchens updated? Are the floors in good shape? If all of the other homes you see have a certain feature (for instance, an updated kitchen) that yours lacks, consider making that a priority. You don’t need to make your home exactly like all the other homes on the market; just make sure there isn’t a single factor that could give your home a disadvantage.
Laura Gaskill