5 Steps to Get Your Home Ready to Sell

Selling a home profitably requires a sharp, strategic mind. Handle it too fastidiously, and you risk investing more than you’ll earn in returns. Handle it too sloppily, and you risk drawing low-ball offers. As you prepare for your resale, you’ll need to keep an eye on your bottom line. If ROI were simple mathematics, life would be easy for sellers, but every repair and refurbishment has its own expected returns. As you prepare your home for a sale, make sure you earn the returns you deserve.

Step one: determine the average costs

Selling a home is an expensive affair. Not only do you have to repay your mortgage, but also cover repairs, staging, and seller concessions. Real estate commissions usually cost around 3% of the house’s resale value. Closing costs include title insurance, settlement fees, and property taxes. You can only decide which optional costs to invest in once you’ve budgeted for your unavoidable expenses. Optional costs include:

A home inspection
A home warranty
Staging
Repairs.

These cost an average of just under $19,000 on a $450,000 home. You can minimize this amount by selling your home “as is” and handling the sale without the support of a listing agent. That isn’t, however, always the most profitable solution.

Step two: determine if you’re in a buyer’s market

Life is a lot easier for sellers in a seller’s market. Inventories are low, buyers are plentiful, and prices swing in the seller’s favor. In these conditions, demand is soaring, and you can ask for a higher selling price. This is when selling your home “as is” could serve your pocket, but some investments are too profitable to pass up.

Step three: understand the ROI of refurbishments

Renovations are sensible if they attract more than they cost. The average return of the USA’s most popular remodeling projects is 75%. The most profitable renovations in the 2024 Cost vs Value Report are:

HVAC conversions, which recoup 103.5% of costs.
Garage door replacements at a recoup rate of 102.7%.
Stone veneers at a return rate of 102%.
Steel front door replacements at a recoupment rate of 100.9%
Siding replacements, which recoup around 95% of costs if you choose vinyl. Fiber cement will recoup an average of 88.5%.
Kitchen upgrades at 85.7%
Vinyl window replacements at 68.5%
A mid-range bathroom remodels at 66.7%
A wood window replacement: 61.2%
Asphalt roof replacement: 61.1%.

If you intend to repair your home, the top-ranking items on the Cost Vs. Value Report are a natural focus. Curb appeal is valuable, but if ROI were that simple, real estate agents would spend most of their lives playing golf. A scrap of a home can struggle to attract buyers. Sometimes, it comes down to what’s available in your neighborhood.

The worst house on the block is still the worst house on the block when it’s in good repair. Your job is not merely to upgrade your home, but to make sure it’s more attractive than the other homes on your street. If the competition in your area is steep, you might want to invest in refurbishments that will make your property stand out.

Step four: determine what needs to be repaired

Some repairs are imperative to the health of your resale. Real estate agents suggest nine “must-fix” items:

Water damage and mold.
Broken smoke detectors.
Plumbing problems like leaks and burst water heaters.
HVAC system breakdowns.
Issues that affect the structural integrity of your home such as damaged windows and siding.
Slab leaks and other foundation problems.
Roofing repairs.
Broken light fixtures and appliances.

Each of these items can be replaced or repaired. Which you choose will be determined by the asking price of your property and the cost of a replacement.

Step five: take care of minor cosmetic issues

When you’ve lived in a home for years, you get used to its flaws and foibles. They won’t be quite as invisible to potential buyers, so a fresh layer of paint can cure a thousand ills. It might not come with an impressive ROI, but it certainly pushes up demand. Your property needn’t be in tip-top shape, but staging can tack an extra 5% onto your asking price.

Take care of minor repairs. Upgrade dated lighting fixtures. Reface your cabinets and vanity. Give your garden a facelift with extra pot plants, mulch, and pebbles. Declutter and clean. These are easy, pocket-friendly ways to make your home more attractive to buyers. You might even decide to hire a professional home stager.

The Top Agent Insights Report found that decluttering and deep cleaning increases a home’s resale value by $20,000. Even the subtlest of facelifts can have a powerful impact on your listing. Your home is one of the biggest investments you’ll ever make, so make sure your resale packs punch.

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