What Not To Fix When Selling a House

What Not To Fix When Selling a House
What Not To Fix When Selling a House

Zoe Hansen / Investopedia

Fact checked by Vikki VelasquezReviewed by Doretha Clemon

When you’re preparing to sell your house, you may be tempted to fix all its perceived flaws. But before reaching for your wallet and calling a contractor, carefully consider what really needs to be fixed (and what you can forget about) when putting your home on the market.  

You likely have to make fewer repairs and upgrades than you think. Learning which home improvements you can sideline before a sale may save you time, effort, and money.

Key Takeaways

  • Not all repairs or upgrades significantly increase a home’s sale value; some can be skipped.
  • Cosmetic issues and minor repairs often offer a low return on investment.
  • Major repairs with low ROI or that could deter buyers should be carefully considered.
  • Cleanliness, decluttering, and effective staging can enhance a home’s appeal without major investments.
  • Negotiating with potential buyers may include handling repair requests creatively, such as offering concessions.

Factors To Consider Before Making Repairs

Consider how much time and effort you want to put into your home before a sale. 

“Decluttering and a good deep clean go a long way and are the most important things to do [when getting ready to sell your home],” shares Ann McBride-Alayon, licensed real estate broker and owner of Hudson River Line Realty

Major projects, like fixing up an outdated kitchen, could cost you anywhere from $14,611 to $41,440. “Updates to the kitchen and bath are generally not advisable if they are going to come up as cheap/builder grade. You would be better off keeping a dated kitchen and letting the next owner bring their vision rather than feel lukewarm about a generic kitchen that they might just want to rip out,” shares McBride-Alayon.

Cost vs. Return on Investment (ROI)

Due to a potentially low return on investment,  upgrades aren’t usually advised before a sale because they may not recoup the costs. For example, Remodeling Online cites the national cost recovery for big-ticket projects like a major (midrange) kitchen remodel as only 49.5% and the addition of a primary suite as 35.5%. 

According to the National Association of Realtors (NAR)’s 2022 Remodeling Impact Report, even small upgrades might not pay off. For example, the report states that simply renovating a closet may only recoup 83% of your investment, and only 4% of realtors would recommend it to sellers. Don’t make the mistake of spending more than you need to make repairs. You may not recoup the money. 

“I advise my sellers to put money on ‘band-aid fixes,’ i.e., things that will get you the biggest bang for your buck,” shares licensed real estate salesperson Adie Kriegstein, founder of NYC Experience.

“Anything visual that we can fix upfront in a quick manner and for a little bit of money is well worth the return,” she says. “Keep in mind sometimes the return isn’t just dollar value but how quickly a home can move into contract so that it’s not sitting.”

Market Conditions

It’s important to consider market conditions as well. According to data from The Department of Housing and Urban Development’s Office of Policy Development and Research (PD&R), the inventory of new and existing homes increased month-over-month and year-over-year in February 2024. Existing home sales increased, as well. 

A comparative market analysis (CMA) from your realtor can help you set a sale price based on competition and inventory in your local area. A CMA will also list a home’s style, size,  and other factors that may impact your home’s sale based on your area’s market conditions.  

Whether you are in a buyers’ or sellers’ market may influence what you fix. In a buyer’s market, when sellers face heavy competition, repairs, and renovations may tip the balance for a strong sale. And a seller’s market makes it easier to say no to fixing up a home. 

In some cases, it may be better to sell “as-is,” which means that the property will remain in its current condition without any repairs or renovations. 

“‘As-is’ is more about explaining that whatever issues you find at the inspection, the sellers are not going to address, and hopefully, the list price reflects that,” says McBride-Alayon.

Important

Don’t assume selling your house as-is always means a lower sale price. 

Urgency of the Sale

If you need to unload your home as quickly as possible, cleaning, decluttering, staging, and then listing it as-is may be the best approach for the highest sale price. 

Consider how long projects will take. For example, if a seller decides to remodel, repair, or rehab but doesn’t finish the job, buyers may be turned off at viewing a partial project. 

If you have the time, some improvements could be worth it.  “The non-fun upgrades such as a new boiler or hot water heater if they are already on their last leg could add value,” says McBride-Alayon. [Because] these are the sorts of projects new homeowners don’t want to take on generally.”  

What Not To Fix When Selling a House

It costs money to sell your home–plan on paying fees, potential taxes, and commissions, not to mention money for your next abode. Avoid these repairs when selling your home. 

“If the [home’s] price is consistent with the current market, it will sell. Buyers don’t want to un-do a cheap renovation, better to let them bring their vision,” adds McBride-Alayon.

Cosmetic Issues

While it can be tempting to correct cosmetic issues, they might not be your time and money, especially when the buyer may want to customize the home after it is purchased.

  • Scratches on floors and worn carpets: Minor wear and tear should be ok. 
  • Cracked blinds: Remove the blinds, wash the windows so they sparkle, and skip replacing any window treatments.
  • Outdated fixtures: Replacing them can get expensive, so skip those too. 
  • Cabinets and countertops: There is usually not enough return on investment to redo cabinets and countertops. 
  • Outdoor landscaping: You can give your home curb appeal without hiring a pricey landscaper. 
  • Adding trendy upgrades:  Nix adding personalized decor. 
  • Repainting in bold colors: “Remember, not everyone sees colors the same, and this can really affect the response your home gets when it hits the market,” says Kriegstein. 

Minor Repairs

  • Decks: A new coat of paint or stain may impress buyers, but it won’t necessarily raise the sale price.
  • Loose electrical outlets: Leave outdated or loose electrical outlet covers alone. 
  • Squeaky screen door: A door can be expensive to replace, so leave this one alone. 
  • Broken window screens: Removing screens will be cheaper than replacing them.

Major Repairs With Low ROI

  • Turning an attic into a living area: According to NAR, the cost recovery on a major project like this is only 75%, and if the job isn’t finished, it may frighten buyers away.
  • Replacing windows: According to some estimates, replacing windows could cost a seller $614 to $1,309 per window, and the ROI may not cover this expensive project. 
  • Changing floor coverings: Replacing carpets and installing hardwood floors is costly and time-consuming. It is better to hire professionals to deep-clean your floors before you show your home.
  • Upgrading light fixtures: Replacing broken bulbs or lights in your home is a good idea; purchasing high-end lighting fixtures may not be worth it. Lighting from chandeliers to sconces is often a matter of personal taste. 

Personalized or High-End Upgrades

These projects cost time and money and often don’t offer a great return on investment, especially when upgrades are only done to one room versus the entire house. 

  • Buying expensive appliances: It is inadvisable to update appliances before a sale. If you have functional appliances, don’t purchase new ones.
  • Adding wallpaper: Don’t bother replacing outdated wallpaper or starting a new wallpaper project. It’s expensive, up to $1,500 a room, depending on its size and the paper you select, and what you find attractive may not appeal to your buyers.
  • Installing a hot tub or cold plunge: While outdoor features may appeal to buyers, you will unlikely see a return on your investment, and they may turn some buyers off if they are in bad shape.
  • Installing home technology systems: If you have smart home technology, you will likely take it with you. If you don’t own it, installing it can be expensive, and buyers may want to customize any tech after they purchase the home. 

What To Fix When Selling a House

Some lenders will not even commit to a mortgage loan when a home has serious problems. Significant safety issues, like mold or high levels of radon, both of which can and should be fixed by the seller, will likely mean your home will fail a home inspection. 

Luckily, home insurance may cover damages caused by weather or catastrophic events and, in some cases, structural issues. Use your homeowner policies to complete repairs because most of the items below must be addressed unless the home is being sold as-is for cash. 

  • Roofing issues: A damaged or outdated roof may need attention unless you plan on negotiating the sale price.
  • Building code violations: Address any building code violations before you sell.
  • Structural cracks: These will likely need to be addressed to sell your home.
  • Subsidence: Sinking floors, cracks in the foundation, and separating extensions can hurt an inspection report.
  • Heave: This is caused when moisture forces the home to expand and lift off its foundation–this will likely need to be addressed.
  • Bulging in/out walls: Occurs from water damage and may even mean there is mold.
  • Heating, venting, and air conditioning (HVAC) system: Make sure your systems are in working order before selling your home.
  • Updating or refinishing hardwood flooring:  According to NAR’s 2022 Remodeling Impact Report, the item that recouped the highest percentage cost was refinishing hardwood floors (147%). If you can afford it, take on this task for a nearly guaranteed return on investment.
  • Paint: “A fresh coat of paint, sometimes bright white versus one with yellow undertones, adds crispness to a space,” recommends Kriegstein.

How To Present Your Home in the Best Light Without Over-Investing

Cleaning and Decluttering

One thing all realtors seem to agree on is deep cleaning and decluttering every room of your home. “I can’t say it enough: cleanliness and a decluttered space are so important,” says McBride-Alayon. When buyers walk into clean and chaos-free (and odor-free) homes, it helps them imagine themselves living there. 

Other things sellers can fix on the cheap: “Washing windows if you have an amazing view (acid wash if necessary), fixing and/or removing window treatments, fixing warped floorboards, editing the home upfront to remove any items that have very bright or bold colors, and tidying up a place which often means putting things in storage,” recommends Kriegstein.

Staging 

Staging a home is different from decorating a house, so you don’t need to go overboard. The art of staging is creating a polished, welcoming, but neutral environment that allows buyers to imagine themselves living in your home. 

And using a stager may be worth it. According to data from NAR’s 2023 Profile of Home Staging, 56% of buyers’ agents cited that home staging affects most buyers’ feelings about a home, and the dollar value offered may increase up to 5% compared to similar unstaged homes. 

Warning

Staging can be expensive; according to NAR, the median dollar value spent on a staging service was $600. However, this amount goes down to $400 when you ask your seller to stage your home personally. 

“My goal is to stage a home for a very small amount of money,” shares Stephanie Northrop of Home Remedy Hudson Valley. A licensed real estate salesperson, designer, and professional organizer, she works closely with clients.  “I try to work with what my client already owns and add a few items here and there—matching lamps on existing bedside tables, some pretty pillows on an existing sofa, organizing a bookshelf by color to give it a clean and organized feeling,” 

Northrop recommends simple touches that won’t break the bank (removing personal items, opting for less furniture in a space, and focusing on what buyers often care about the most–the living room, the primary bedroom, and the kitchen. 

Highlighting Positive Features

Making a list of a home’s most positive features can help narrow down what you want to highlight to appeal to buyers’ emotions and practical needs. 

Eco-friendly appliances and functional uses of unusual spaces, like a reading nook tucked into a window seat or a set of shelves built into the stairs, are clever uses of space to highlight. Homes with gorgeous views but lousy window treatments can benefit from simply removing old curtains and letting the light in. 

Other Considerations During the Home-Selling Process

Setting Realistic Expectations

A realtor with strong knowledge of comparable properties in the area can also help a seller determine what their home is worth and what, if anything, they should consider fixing up. Hiring a home inspector can help you, as a seller, shed light on any structural issues or repairs that you may (or may not) want to address. If your home needs a lot of work, be realistic and examine your option of selling it as-is

Sellers should also consider how much time they have to sell the house, what other similar homes in their neighborhood are going for, and how much they can afford to spend on rehabbing or repairing items in their homes. 

Home Inspections

Once the property is “in contract,” the buyer will traditionally schedule and pay for a home inspector to inspect the home to make sure it doesn’t have any safety or structural issues or other areas of concern. Even if you, as the seller, hire your own inspector prior to the sale, traditionally, the buyer will hire their own. 

After the inspection, the buyer will receive a report detailing the property and listing all minor and major issues. The buyer can use this report to ask the seller to make repairs or negotiate to deduct the cost of the repairs from the sale price. 

Negotiations With Potential Buyers

When you are selling your home, a buyer may want to haggle over repairs before settling on a sale price. It can be in a seller’s best interest to offer concessions like a home warranty or closing cost assistance versus making the repairs yourself or paying a professional. 

One common alternative to making home repairs, for example, is to offer a price reduction on the sale of your home based on potential work. It may be less expensive to do this versus hiring a professional to fix it up. Sellers can also consider offering a cash credit, money paid to the buyer after the sale is finalized. 

When negotiating with a buyer, your realtor should help you iron out reasonable requests, like repairing water damage, from updates that, as a seller, you are not obligated to make, like fixing a back deck or repainting exteriors. 

FAQs (Frequently Asked Questions)

Should I Sell My House As-Is?

If you need to sell your home fast, cannot afford to, or do not want to, make any repairs, and are hoping for an all-cash offer, selling your house as-is may make financial sense.

Is It a Good Idea To Replace All the Outdated Appliances in the Kitchen?

No. Most real estate agents do not recommend replacing appliances if they are not broken. 

Should I Invest in Landscaping and Curb Appeal Before Selling?

Mowing the grass, weeding a lawn, adding some plants or flowers, or giving your front door a fresh coat of paint are all inexpensive ways to increase curb appeal without spending top dollar on landscaping.

Can Staging a Home Replace the Need for Certain Repairs?

“Staging a home with beautiful furniture and decorative objects could replace the need for cosmetic repairs like new floors or windows or an outdated kitchen, explains Northrop. “However, any health and safety issues (like a leak or mold or rotting floor joists) should be tackled by the homeowner before listing,” she says.

What Is the Best Time To Sell a House?

According to data from Realtor.com, the ideal time is the spring. In 2024, the idea week was April 14-20, which offered peak conditions to gain maximum return on investment. If you’ve missed the third week in spring–late spring and summer, before school starts in the fall, are also good times to sell. 

The Bottom Line

When you are ready to sell your home don’t worry about fixing everything up. Most real estate agents agree that renovations don’t always pay off. Instead, research your current real estate market, talk to an experienced seller’s agent, and plan on spending money to deep clean and declutter your whole home—two tasks a seller should never neglect.

Never underestimate the value of staging your home to make it more attractive to buyers, which is generally cheaper than installing mediocre upgrades. Last, if your home has structural issues or requires heavy-duty rehab, be prepared to negotiate with buyers or consider selling the home as-is. 

Read the original article on Investopedia.

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