02/15/2024
Doing extensive property prep is not necessarily the best path for every home.
Let's take two of my listings as examples. The first one was a home in San Mateo that had a lot going for it, though some areas were dated and needed a refresh. The seller did these upgrades with almost no out pocket expense because they took advantage of a zero interest loan through Compass. The second property was in a prized area of Palo Alto. That home was in original condition, but not a teardown. We did no prep, not even paint! In both cases, I was able to negotiate a final price for my client that was higher than they hoped.
How do you know which approach to take? Read below โฌ๏ธ for some of the areas I explore with my clients to help them make the right decision for their situation.
โก๏ธ Timeline and goals: If you need to sell quickly, speed may be the goal even if it means limited market exposure and a lower sale price. In this scenario, prepping the house costs money and will delay how long it takes to get the home on the market.
โก๏ธ Property condition: Move-in ready homes tend to command a premium over a similar home that needs work done. Many people don't want the cost or distraction of a "project". There are buyers at all price ranges who prefer to make their own updates. Knowing your audience helps to inform this decision.
โก๏ธ Location: In more expensive areas, buyers are willing to buy a diamond in the rough - location is paramount. The finishes and fixtures these buyers want may be higher quality than those used in a house that was updated to sale. At lower price points, and in areas with more homes to choose from, it can make good sense to put in the work to make your property stand out from the crowd. Buying is emotional - the home has to "feel good".
โก๏ธ Market factors: There's a lot going on in the world right now: interest rates, a presidential election, geopolitical instability. These are just some of the things that can have pronounced effect on buyer confidence. This is another data point I talk through with my clients.
Call me. I'd love to help you think through your options and get you the highest possible price for your home.
๐ฒ (650) 933-3913โฌ