Updating house for sale question

[mercellusb]

We're putting our home on the market. Our real estate agent is really good and sells numerous homes in this part of Houston. She says we could put the house on the market at X dollars, and probably sell it rather quickly, sin ce it's a nice house in good shape. It also has a larger lot than the surro unding homes and all sorts of recent upgrades to AC/Heating, Water Heater, Fence, Hardwood floors throughout, etc. The bathrooms and kitchen were upda ted before we purchased the home in 2005. The updates were good, but they d idn't do all the granite counter-tops that everyone (except us) likes these days. We don't particularly like granite and decided to leave the counters alone until we did a remodel, that we are not going to do now.

So, our real estate agent says we could sell relatively quickly at X dollar s by only making some cosmetic (paint, etc.) changes. Or, we could make X + $$$ if we put in granite counter-tops in the kitchen and all bathrooms for around 10K.

We have our mother-in-law living with us now and the construction would be a huge disruption for her. Also, the original listing price that the agent says we can get, without putting in granite, is about what I have been expe cting to get. If we do the granite, we can get a lot more than the 10K we'l l be putting in.

However, and don't take this the wrong way please, we don't really need a l ot of money out of the house. We have a lot of equity and our house will se ll for a LOT more than what we paid for it in 2005. The real estate prices for existing homes in Houston (in our area, never flooded) have stayed up t here, even with the downturn in the oil/gas biz.

Put in the granite for 10K?

(By the way, this is the documented quoted price from the counter-top guy f rom yesterday.)

[hubops]

1. never trust a sales-person - especially a real estate agent 2. get a 2nd & 3rd opinion - one from an actual property appraiser < it might cost you a hundred and fifty bucks or so > 3. look into selling privately 4. the renovations will always cost more - stuff happens 5. see item 1. Good luck. John T.

[trader_4]

I tend to agree. If the house has some obvious defects, I'd fix them. But granite counter tops? I don't think so. People have different tastes and if I was the buyer, I'd rather buy it for a little less and put the color of granite in that I want. Some, may want to redo the whole kitchen because they want a different style, so the new granite would be a waste. Or a buyer may not be able to spend the extra $20K or whatever that you hope to get.

That real estate agent is obviously giving you an honest opinion though. It's not to her advantage to get people into upgrade projects, seems dumb to me. You start doing upgrades, it takes time, things happen, you change your mind about selling. If she was thinking about her benefit, it's better to sell it now, not delay and risk not selling it later.

[Mercellus Bohren]

Thanks. We're leaning this way. The agent says that if we don't do the granite, they can provide the estimate so potential buyers can see that it's not that expensive to put it in, if they choose that route.

[trader_4]

Raise the price $10K, offer the buyer a credit of $10K back for upgrades of their choice.

[Mayayana]

It sounds like you're looking for support for your preference to just sell and move on.

Realtors are good with that kind of thing. They can be wrong, but they'll know far better than anyone else what you can expect.

On the other hand, at least in my area (Boston) real estate has become a high stakes gimmick. They come in ahead of time with their own furniture and decorations, spec specific work to be done, then have an open house with closed bids. The houses generally sell in 3 days for ridiculous prices! Only people with cash in hand even have a chance. No waiting for financing.

It used to be that a house just had a price, might be on the market for months, and could go through a number of bids before someone bought it. In Boston the prices are so high and the market so speculative that the whole market is now changed. A result of that is that realtors are quick to specify work that needs to be done just for looks. It's no skin off their back if you don't benefit from the new counters, but they stand to gain if you do.

I once built a large closet with mirror doors just for a sale, to make a bedroom look bigger and more atttractive, despite the almost certain knowledge that any buyer who could afford the house would be gutting it for renovation.

So... Probably more money, but more hassle and a possibility of complications. For instance, what about the backsplashes? Will any of those need work with the granite counters done?

It's really up to you. Neither choice is right. A third option would be to just go on the market and see what happens. If there are no bites you can always do the counters and then re-list. (Another big sucker item, which your realtor probably knows, is stainless steel stove/frig. Oddly, kitchen cabinets seem to be out of favor. People swoon over SS stoves but don't seem to notice junky "fake dark wood" or melamine cabinets.

[Reggie]

We're putting our home on the market. Our real estate agent is really good and sells numerous homes in this part of Houston. She says we could put the house on the market at X dollars, and probably sell it rather quickly, since it's a nice house in good shape. It also has a larger lot than the surrounding homes and all sorts of recent upgrades to AC/Heating, Water Heater, Fence, Hardwood floors throughout, etc. The bathrooms and kitchen were updated before we purchased the home in 2005. The updates were good, but they didn't do all the granite counter-tops that everyone (except us) likes these days. We don't particularly like granite and decided to leave the counters alone until we did a remodel, that we are not going to do now.

So, our real estate agent says we could sell relatively quickly at X dollars by only making some cosmetic (paint, etc.) changes. Or, we could make X + $$$ if we put in granite counter-tops in the kitchen and all bathrooms for around 10K.

We have our mother-in-law living with us now and the construction would be a huge disruption for her. Also, the original listing price that the agent says we can get, without putting in granite, is about what I have been expecting to get. If we do the granite, we can get a lot more than the 10K we'll be putting in.

However, and don't take this the wrong way please, we don't really need a lot of money out of the house. We have a lot of equity and our house will sell for a LOT more than what we paid for it in 2005. The real estate prices for existing homes in Houston (in our area, never flooded) have stayed up there, even with the downturn in the oil/gas biz.

Put in the granite for 10K?

(By the way, this is the documented quoted price from the counter-top guy from yesterday.)

-----------------

what is ($$$$ - $10k)*(1-selling cost %)?

[hubops]

I would tend to keep the transaction clear and simple - rather than muddy-it-up with un-necessary and complicated conditions-of-sale ... .. whether I was the seller or the buyer. Especially if it's a decent home in an active market. John T.

[Frank]

I would fix things that need fixing but not upgrade anything. For example if shingles are curling and you need a new roof a potential buyer will certainly deduct the cost of a new roof and maybe more from his offer.

I watched my next door neighbor do a ton of upgrades, over price the house, and have to take an offer far lower than predicted.

He had put in a new bathroom for example and the buyer completely redid it to accommodate elderly grandparents. New owner even tore out new carpeting and refinished the hardwood floor beneath.

[Ralph Mowery]

The bathrooms and kitchen were updated before we purchased the home in 2005. The updates were good, but they didn't do all the granite counter-tops that everyone (except us) likes these days. We don't particularly like granite and decided to leave the counters alone until we did a remodel, that we are not going to do now.

By all means do some simple things such as fresh paint to make it look good. Do not forget the outside of the house for looks. Don't spend much on things that are not needed like the Granet tops.

As somneone mentioned, look at putting it up for sale yourself. I am sure you are under contract for 6 to 12 months to the realitor, but if not sold by then, sell it yourself.

Several years ago I went through some of this. Was living in a house, dad passed and had his house to deal with, and also bought a house. The house we bought and dads house went thgough a realitor. Bad mistake. Had a difficult time with the sales. Cecided to sell the house we were in. PUt up a sign and advertised in the paper for 2 weeks. Sold the house without any problems.

[Micky]

That is so sad.

My story is not exactly on point, but I had good friends whose real estate agent told them to fix it up before selling.

I'm 98% sure I told them to advertise it now and if they get the price they want, or close, they can stop doing fix-ups, and if they don't, they can do what the agent said. But they listened to her and then in 2008? the real estate market crashed and they couldn't sell it at all. Fortunately they got a good tenant, and real estate can pay well with good tenants, but if those people moved and they got bad ones the next time, he wouldn't tell me.

They had put in a floor covering that I liked, but I don't think everyone would. Another potential waste.

When I sell, I'm not painting white so they can paint the baby's room baby blue. I'll set the price at the market price and then knock it down $25,000 so they can afford all the repairs. Paint, carpet, kitchen floor, they'll probably want new windows, new cabinets, new appliances, new furnace, new AC, new bushes. Maybe 25K isn't enough.

[Micky]

Hey, that's great, because that's exactly what I've got. Even I would rather have fancier cabinets, but only a little. And then there are all those decisions to make, which contractor, which cabinets, got to clean out the current ones before they put in the new ones, maybe have to complain and maybe sue them when things go badly.

Easier to just stick with the cabinets I've got. Heck, in Europe my family didn't even have cabinets.

[Skid Marks]

Real estate is all about perception.

You, your junk, and your dirty carpeting have to move out.

Then clean and paint until it looks as close to new as possible.

Remove all mold and stains from showers, toilets and sinks.

It has to look spotless!

[Stormin Mormon]

John T makes good sense. When my sister sold the last house, she and hubby spent a pile of money on carpets and paint. The buyers hated the color scheme and ripped it all out.

My advice is to do as little as possible, and sell a few bucks cheaper.

My sister took out the appliances (fridge, stove, washer, dryer). Which I thought was a very bad decision, and told her so. We might have found a young starter family who would use them. The stove was 50 years old, but worked very nicely.

[bob haller]

my next door elderly neighbor died and the family was dead set against doing anything. meanwhile a identical home close by sold in days for 40 grand more.

the do nothing family took near 3 months to sell.......... they dumped it for cheap just to end the hassle.

the buyers have been working on it non stop, its just about done.

90% of home buyers want a completely move in ready home, later they will change paint etc.......

smart sellers make kitchens and bathrooms look awesome.

but hey what anyone chooses to do doesnt effect me or my wallet

[Stormin Mormon]

I think RE agents get a percentage of the sale price, so it's to advantage to suggest expensive repairs that increase the sale price.

[Stormin Mormon]

Make that 12k increase, and offer a thousand dollar instant cash rebate in addition to the

10k upgrades.

[Ralph Mowery]

Around here they usually try to get 6% of the selling price. Sometimes that can be bargained with, especially if it is an expensive house.

[Snuffy "Hub Cap" McKinney]

really good and sells numerous homes in this part of Houston. She says we could put the house on the market at X dollars, and probably sell it rather quickly, since it's a nice house in good shape.

Sorry, I missed the question... a good agent is worth a lot, but I'm not a big fan of driving around town looking at houses someone else picks out for me.

Last house I bought, I just got the list of houses that fit my requirements, checked them out on my own and then told the agent which ones I wanted to see. That saved me and agent a LOT of time, and it was the easiest commission the agent ever made.

If an agent won't do this, you don't want to deal with them. If a house sells to someone they sent the list to, all they have to do is show proof of sending it to the listing agent and they'll get at least part of the commission.

[Snuffy "Hub Cap" McKinney]

Sorry, ignore my other posting - wrong subject as usual...

What I've been told is to fix anything that is broken or needs replacing. If functional and looks OK, leave it. It's not necessary to replace windows, kitchen cabinets, etc. Ignore what realtors say about getting 90% of remodeling costs back - that's BS. Buyers may not like the new style.

If possible, move all the furniture out. If affordable, paint and recarpet or refinish floors. If something stands out, like old light switches, replace it.

What I've seen here are the following types of buyers....

1. Want brand new house or as close to it as possible, will pay top dollar.
2. Want house ready to be leveled to build a new house, will pay top dollar.
3. Want fixer upper, will try to bargain you down.

Also, don't worry about baking bread before an open house. Everyone is on to that trick for covering up smells. Better to have all your family members take a dump in the commode and leave it there just before you leave.