The Secret to a Top-Dollar Sale? These 4 Things
Updated: 5 days ago
Imagine…
…you have decided it’s time to sell your home. You know that in the East Bay, beautifully presented homes command premium prices. But you are unsure of where to start and which are smart investments…
…OR, you aren’t ready to sell anytime soon, but the home you’re in now is not your “forever” home. What improvements make sense and are advised if you were to sell at a future point in time?
You’re ready to consult with your Realtor, as they can support you in making the right decisions that will achieve your goals - whether they are to net the most on a sale, or to invest in smart improvements that will payoff at a future point in time.
When I’m guiding my clients, I take into account a number of parameters for these decision:
Health and safety is paramount. If the home presents a hazard or potential liability for the people who inhabit it, or who will visit it at an open house and eventually buy it, it’s important to create a physically safe environment.
Does this mean you have to finally address the slow gas leak from your vintage Wedgewood oven? Yes.
Does this mean you have to do a full seismic retrofit in case of an earthquake? No.
There are reasonable limits to addressing health and safety concerns, but know that this will always be the first thing on my list.
Your life is also a priority! If you don’t plan to sell for 5+ years but you’ve always dreamt of a new kitchen backsplash, by all means get that backsplash! If you think an improvement will make a meaningful difference to your lived experience, I encourage you to make your home yours. I understand the impulse to “kill two birds with one stone”, but I genuinely can’t predict what tile backsplash trends will be circling in 5+ years so even if I tell you what’s en vogue today, I may recommend switching out the backsplash again when the time comes to sell. So please, follow your heart.
Of course there are unwise moves in this category…the more “custom” you make your home, the more it moves away from the notion of “universal appeal”. Know that when the time comes to sell, you may need to invest more to unwind your creative choices the further down the spectrum you go.
Barriers to entry: there are some conditions that make it very hard for a buyer to write an offer on a home.
Our complicated insurance landscape issues requirements for writing policies that continue to shift, and I will advise my sellers to remove as many barriers as is reasonable to make it easy for a buyer to say “yes” and simultaneously qualify for insurance. Right now, insurance carriers don’t want to see old roofs, knob-and-tube wiring, and galvanized plumbing. Does that mean you need to immediately invest in those updates? Pump the brakes and talk to your agent so they can guide you on the right path ahead - you may not need to address it all.
We also see seasonal barriers to entry. During covid, home offices and large backyards were very important to buyers. During fire season, it’s especially important to invest in landscaping for defensible space and a seller may even choose to wait until the rains come to sell a home in a high fire hazard area.
Barriers to entry will stop a buyer in their tracks - t’s not a matter of receiving lower offers, it’s a matter of receiving no offers. So pay attention to the buyer experience when preparing your home.
The pretty stuff. Last but definitely not least are the improvements you make to a home that transform it from “this home is okay” to “I can’t lose this home!!”
It’s in this category that we talk about the 3 X ROI (return on investment) filter…that for every dollar invested, you need to see $3 come back to you in the sales price. There’s no point in investing in an area of the house if a buyer won’t pay for it, in spades, on offer day.
There is a cumulative effect with “the pretty stuff” as well…the refinished hardwood floors and new paint job will certainly bring value alone, but if you pair it with a fantastic staging job, the ROI jumps significantly. Which means that conversely, if you cost-engineer the wrong item off the scope, you may lose significantly more on your return.
This is why it’s important to rely on guidance of an experienced Realtor to tell you what’s important to buyers today…a Realtor who represents both buyers and sellers in the market (not on the same house!) can guide the market preparation decisions through the lens of what today’s buyers are prioritizing. Working with someone who understands both sides of the equation informs you, as a seller, as to where to focus and invest.
For example, wallpaper is very popular right now. I recently saw a gob-smacking example of two similar homes in the same neighborhood that had very different outcomes…
House A was a 2 bedroom + 1 bathroom bungalow of about 1,000 sf on a 3,000 sf lot. It was thoughtfully prepared with colorful touches and a whimsical wallpaper entry that got a lot of play on Instagram and in marketing. It was listed at $799,000.
House B was a 2 bedroom + 1 bathroom bungalow of about 1,100 sf on a 5,000 sf lot. This home had very basic preparations where everything was painted white. It was listed at $750,000.
House A received 10 offers and sold at $1,150,000.
House B received 1 offer and sold at $1,050,000.
That $100,000 wallpaper was worth every penny for House A.
Experienced home owners will know that you can always paint a wall or install wallpaper (certainly the House B new owners are well-aware!). But the truth is, most buyers don’t have the wherewithal to see through unrealized potential. I like to say that homebuyers don’t lack money, they lack the time and resources to improve a home. It’s for this reason that they so value the pretty stuff.
In the East Bay, where buyers have discerning taste and high expectations, presentation matters more than ever. Properties with high-end staging, strategic updates, and inviting curb appeal consistently outperform the competition.
If you’re unsure of how to prepare your own home, lean on the experts! Call me at any point, I’m happy to provide guidance.
