There is no doubt that high equity real estate sells faster and commands a higher selling point. If you are getting ready to sell your home, before you start moving and packing, there are some areas of your home you should invest in to ensure that your property is categorized as high equity real estate. Here are some worthy investments that will improve your property, help it sell faster and help to make you more money on the sale.
Building Equity Before You Sell?
High-equity real estate sells faster and commands a higher sale price because savvy buyers understand that they are getting great value. High equity real estate attracts highly qualified buyers that are ready to buy now. And if you have a lot of equity built up, you can expect the right kind of buyer to make a deal on your home.
When buyers are presented with a property where the asking price is at the top of the market value yet needs some work. They are presented with a property with an asking price at the top of the market value, a turnkey property. You can bet they will choose the latter. The thing is, a lot of what is ‘valued’ in a home is perceived value. For example, a home with a new roof is valued higher than a home with an older roof by a buyer.
High equity real estate is a property that delivers a turnkey approach to buyers and has a higher perceived value. Many buyers are willing to pay more for a property they don’t have to do anything with. Investing in your home and building equity in the form of improvements can be a great way to see a lot more profit.
A Highly Functional Home
Buyers can make a big deal out of small repairs and use it as a negotiating tool. Before you list your home for sale, you must ensure everything in your home is fully functional. For example, if you have locks that ‘stick’ or ‘slip,’ call a locksmith company and get them repaired. It is a simple fix, but it can work to your advantage.
If your garage door is not functioning properly, it can send the wrong signal about the maintenance of your home. Enlisting the help of a garage door repair professional to fix the problem is an easy solution that will add equity to your home and improve the perception of your home to potential buyers.
Below, you will find other areas you should repair before showing your home. You will find the approximate cost to repair these things, the time it will take to get the job done, and the value it will add to the sale price of your home.
Some repairs are essential if you want your property to be perceived as high equity real estate by potential buyers. Infrastructure repairs include plumbing, ac repair services, electrical, and roof repairs.
The key infrastructure of your home comprises systems without which a home cannot function. For example, a faulty water heater means that hot water is unavailable when needed. Plumbing services can fix the problem. A new water heater can add instant equity to your home, making it a far more attractive purchase option for buyers.
You can expect to invest around $1000 in a new water heater; the project will take less than a day to complete. A new water heater comes with an ROI (return on investment) of about 20%. Of course, there is a value that cannot be calculated by replacing your water heater. Buyers like purchasing real estate with a new water heater and other new infrastructure.
HVAC Repairs or Replacement
Your HVAC system is one of the most important systems in your home; qualified buyers know how important a functioning HVAC system is. They are also well aware of the expense of replacing a faulty system.
If you can avoid replacing the system before you sell, you should; however, if your HVAC cannot be repaired, keep in mind it will ding the value of your property. Most buyers will check the HVAC system to ensure it is highly functioning. HVAC repairs are often quick and easy, and affordable.
You can expect to pay under $600 for most HVAC repairs. Typically, repairs are done in less than a day, and you can expect a 10% return on your investment. Additionally, like the water heater replacement, buyers do appreciate a home with a fully functioning, tuned-up HVAC system.
Add Equity With a New Roof or Repair Your Old One
Residential roofing companies in your local area can help you repair, improve or replace your old roof to build home equity and get your property up to the criteria for what is deemed high equity real estate.
Any roof repairs should be made before you list your property for sale. If there are obvious signs of water damage on ceilings, repair that. The quickest way to scare off highly qualified buyers is to make roof damage apparent. Buyers suspicious of roof damage will likely look elsewhere for their new home.
A replacement roof can give you up to an 85% return on your investment. Some roofs come with a much higher return than other roofs. For example, according to the experts, some metal roofs come with a 106% return on your investment.
A new roof can range from $5,000 to $25,000 depending on the style of roof, the size of the home, and the materials you choose for the roof. It will take between 3-5 days to replace a roof.
If your roof is in good condition, an inspection from a trusted roofing company can help you present the facts about your roof to potential buyers. A roof inspection comes complete with a report where the roofing expert outlines what they have found. A clean bill of health for your roof can be a very attractive selling point for a buyer looking for high-equity real estate.
A roof inspection is an affordable way to reassure buyers and reassure yourself that everything is okay with your roof. During the inspection, if minor repairs need to be made, the roofer will point them out and provide you with a repair estimate.
Work On Curb Appeal
You can tell a lot about a house right from the curb. A well-maintained lawn, a well-kept exterior, and well-thought-out landscaping can improve curb appeal. Start upgrading your curb appeal with some basic repairs. For example, if the siding on your home could use a little TLC, connect with professional siding repair services to manage the repairs.
Siding is like your home’s armor. It sets the pace for the entire exterior of your home. Siding dented, damaged, fading, and in disrepair doesn’t send the right message about your home. Even if you do all the other repairs on this list, if the exterior of your home needs attention, you are sending the wrong signals to potential buyers.
Consider your entry door once your siding is in tip-top condition. Is it in good shape? Could it benefit from a coat of paint? How does it look walking up to your front door? Is the lawn manicured? If you have anything lying around the front of the house, tuck it away in the garage or get rid of it.
High equity real estate looks like it is well cared for and gets the attention to detail it deserves. The curb appeal factor is large when it comes to potential buyers deciding from the start if your property is worth their time to look at.
A recent survey by the Realtors Association found that 67% of homebuyers do a ‘drive-by’ before they make an appointment to see the property. During that ‘drive-by,’ buyers decide whether your property is something they want to learn more about.
Your front yard does not have to be sprawling but needs to be neat and inviting. Small changes can have a big impact on how buyers perceive your property.
All the property around your house, both front and back, should be clear of debris. Consider connecting with a dumpster rental company to eliminate all the old debris at once. For example, that lounge chair out back that you keep meaning to throw away needs to go. While removing junk from around the house, don’t forget to clear the garage of anything that is taking up space that you don’t want or use.
Buyers are far more likely to forgive a lawn that needs some work than they are to be able to get past stacks of stuff everywhere. Clean up your property before you list your house for sale.
Flooring is a Good Investment
While it is imperative to invest in infrastructure repairs, upgrading your property’s cosmetics can be equally important. For example, if your floor tile has some cracks and chips, consider having the tiles replaced. If the carpeting in the living room is stained beyond professional cleaning, invest in a new carpet.
You don’t have to choose top-of-the-line luxury flooring options to upgrade your floors. Midrange options are very affordable and will increase the value of your home. Changing old, outdated flooring for something new can add about 12% to the resale value of your home.
New flooring is beautiful to buyers. You don’t have to replace all the flooring in the home, but you should replace the visibly worn flooring if you want your property to be considered high equity real estate by buyers. A professional flooring company can easily install your new flooring in about a day. Look for discount options and sales to make your new flooring more affordable.
Definitely Do This
Speaking of cosmetic factors. There is nothing quite as transformative as a fresh coat of paint. Paint makes your home look cleaner, updated, and shows better. Painting the interior and the exterior of your home either as a DIY project or by hiring a professional will add about 20% to the resale value of your home.
We touched on the ‘turnkey’ factor of high equity real estate. A fresh coat of paint adds to the turnkey factor. Qualified buyers like not having to worry about painting the home for a few years. It makes it easier for buyers to envision living in the house when nothing prevents them from moving in, like waiting for the house to be painted.
Choose neutral colors to paint your home. Avoid over-customizing paint colors. Your goal is to appeal to a wide audience. Custom colors appeal to a narrower audience (those who like the same colors as you). If you are pressed for time, hire a painting company. It is well worth the investment.
Finally, Do This
Once you have all the necessary repairs and updates out of the way, it is time to get your house show ready. It would be best if you considered looking for storage companies that offer a month-to-month arrangement and fair pricing to stash some of your goods. According to the Realtors Association, setting the stage for a successful showing starts with removing as many personal items as possible.
You want qualified buyers to be able to visualize their things in your home. If you have a gallery wall of family pictures hanging, it can make it hard to see the home’s potential. Store excess goods like holiday decorations to open up the storage spaces in your home and make them look larger.
Anything you don’t need daily should be stored. Investing in your house before you sell it will ensure that your property is listed as high equity real estate and gets buyers’ attention. Learn more about how to sell your house.