Is it better to buy a dream home or start with a fixer-upper and turn it into a dream home?
That’s the question homebuyers are faced with when they peruse listings that range from a new luxury development to a dated dwelling with shag carpet still intact. In turn, home sellers are debating whether or not it’s worth renovating before selling.
On the latest episode of Keepin’ It Real with Nick Bailey, industry experts explore what aspects of home remodeling make sense for sellers. Panelists include Dennis Walsh, CEO of Dennis Walsh & Associates, a company that provides trainings and designations for agents to become experts in remodeling and construction, and Olivia Mariani, VP of Marketing for Curbio, a home improvement company that works exclusively with real estate agents and their seller clients to prepare homes to sell.
While new-home builders are working to keep up with demand, Walsh explains that the majority of homes available in the U.S. market are likely in need of some revamping.
“Eighty percent of the homes in America are 20 years old or older. A good 40% are 50 years old or older. [There are] lots of properties out there that aren’t in ideal condition and haven’t been maintained,” he says.
So, how can sellers get the best return on investment for their home? The answer may lie within remodeling.
Are home improvements worth it for sellers?
According to Mariani, the majority of today’s homebuyers want a move-in-ready house.
“[The newer generation often] does not want a renovation project. Not to mention, with prices where they are and mortgage rates rising, people don’t often have cash once they buy a home to fix it up,” she shares. “Then there’s this kind of situation where buyers are willing to pay more for a turnkey home. And sellers don’t realize how much money they’re leaving on the table if they don’t update before selling.”
Mariani points to trends noticed in Curbio’s scope of work based on the modern homebuyer’s interests.
“The majority of [Curbio’s] projects over the last couple of years have been what we call a refresh. And that’s where we’re [fixing up] a house [that is] a bit lived-in,” she says.
Some homes are falling apart from lack of maintenance, while others are simply “cosmetically dated,” according to Mariani. Renovating a home to reflect current home trends can appeal to buyers. “Just doing your kitchen and making those small updates like painting the cabinets, replacing hardware, and refinishing the floors can generate just as high of a return on investment as gutting the kitchen,” she says.
How can a real estate agent help?
Mariani and Walsh agree that working with a qualified real estate professional – who has up-to-date insight on the local market and has a breadth of home selling experience – is crucial for home sellers to determine what to update within their home.
“How do [clients] benefit from [real estate agents]? As a real estate professional, we come in and help them understand the process. We have formed checklists, we have various sources of financing, [know] how to select contractors, [and know what] mistakes to avoid,” Walsh explains.
“It’s a way for us as real estate professionals to enhance our value proposition and truly bring long-term value [to] customers,” he adds.
Walsh points agents who are interested in becoming experts on home-selling prep to courses through his company’s website SellNewHomes.com, including the Certified New Home Specialist designation and more.
Mariani shares, “You want to maintain your home. But if you are focused on actually driving the most profit, the best time is when you’re working with your real estate agent and you’re ready to sell.”
Should home sellers DIY – or hire a professional?
DIY culture, often seen via TV shows, has set some unrealistic expectations for the accessibility, cost and ease of home renovation projects.
Mariani and Walsh agree that some work is best left to the experts, especially when safety is a concern.
“I think that a lot of people set out to save money by doing it themselves. Forget even the safety piece of it, but it does become a money pit more than people think,” she says. “There’s a lot of complexity to handling a renovation like things like permitting that could cost you later.”
To hear why curb appeal matters and what areas of the home Mariani and Walsh believe are worth the renovation, tune in to the latest episode of Keepin’ It Real with Nick Bailey.
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Written by LEAH CURTIS
