Paul wants to sell his home. His neighbors home just sold for 650,000.00 The neighbor put on a new roof, updated the kitchen, bathrooms and added new flooring, and fresh paint interior and exterior. This upgrades cost the neighbor about 75K. Paul’s house has not been touched since he moved in 10 hears ago.
Paul calls a WWRE agent to assess his home before listing. The knowledgeable WWRE agent explains to Paul that In order to get a comparable price for his home he will need to do similar upgrades OR he can list it for less and let the market decide what it will bear.
Scenario A Paul decides to list his home AS IS for 575K and receives an offer at full asking price after 60 days( Marking time, Listing, open houses, offer acceptance, closing) After fees and expenses Paul receives 530K
Scenario B Paul decides to do the suggested repairs which take roughly 4 months to complete. He List his home for 650K and receives 675K. After 6 months(construction, Marking time, Listing, open houses, offer acceptance, closing) Paul receives roughly 622K because Paul was willing to do the extra work he received basically a 22% ROI on his cash invested(AS IS 530-622=92K difference in net proceeds. 92k-75K for upgrades=17K ROI 17K/75K cost of upgrades =22% ROI.
Whatever you decide we can help you reach your goals when you List Your Home With Us!