The property market has been in a slump since 2019. Realtor.com reports a decline of two percent in homes sales and projects a drop of 15 percent in 2020 due to the pandemic. Buyers are cautious and will likely be so even after the economy opens up.
What can you do when you need to put your property up for sale?
A Competitive Market
With an expected surge in listings once the lockdown is lifted, your property listing is likely to compete with many others. First, hold off on listing it. Homes that linger on the market for weeks and months are not going to get written offers. Buyers tend to conclude that the seller is more likely to accept a low offer or that something is fundamentally wrong with the house if it stays too long on the market.
Second, take another look at your property. If you haven’t already done it, do a full inspection. Check for signs of wear and tear. Start with the exterior because your home’s façade sets the first impression. If your siding is warped, install new siding. Professionally installed siding not only lifts up the appearance of your property but also improves insulation and eases maintenance. If cosmetic changes will do, from applying new paint to trimming bushes and trees, apply them.
But resolve critical problems, from pest infestation giving way to structural issues to damaged roofing, right away.
And third, work on which rooms to upgrade to secure a better offer on your property.
Home Improvement for ROI
When you have the budget, invest in upgrades because they tend to kick up the value of your property. With the right improvements, you get that desirable asking price and also entice more offers.
Right at the top of your list could be the kitchen. No longer is this space limited to preparing and cooking meals. Most families tend to gather in this communal space to do other things, from study to chat. Some also like organizing their social evenings around the kitchen, if it has the right features.
But don’t go overboard with a luxury upgrade. Instead, improve the layout (if necessary) and replace old appliances with energy-efficient ones. With the right remodel, you could recoup 60 to 120 percent of your investment.
Another room to upgrade is the bathroom. You could put in a tub and add storage areas. You could also replace the old tiles with modern ones that would appeal to any buyer. And if your property has only one bathroom, add another one. A bathroom remodel could give you a return of 80 to 130 percent.
Finally, think about energy efficiency. Most buyers will be enticed by a property that reduces their cost of ownership. You can replace the old HVAC system with an Energy-Star-approved unit. Alternatively, install energy-efficient windows.
A home sale is rarely easy. With the current situation placing an undue burden on your real estate investment, you’ll need all the advantages on your side. So plan your listing carefully and get your property gussied up to attract more offers.