Property Selling Tips-Upgrades and Updates
Often when I go to list properties, some sellers confuse updates with upgrades. Updating a property helps to sell it faster, and for a fair market price.
What exactly is an upgrade and update?
Properties that are dated and have been lived in for a few years need to look newer and fresher. For example, if your house has a 70’s look and you would like to sell in today’s time you need to bring it up to date to today’s trend. If you get rid of 70’s laminate wainscoting. If you have old and out dated kitchen cabinets and faucets they must be updated to meet today’s trends.
Replacing old worn out roof shingles, eavestroughs, windows, furnace, A/C can also fall under updating a property.
Some of these new updates might include new paint that is pleasing to prospective sellers, new electrical switch plates, newer light fixtures to replace those dated builder ones, new kitchen counter tops and backsplash to replace stained or burn marks or scratched counter, new flooring and new closet doors to replace wear and tear of the old one.
Often sellers like to choose their preferred style or colour when updating. However this is not recommended when the colour or style is not appealing to the masses.
For example, you cannot have an orange, green, or purple wall and expect to attract potential buyers. Light oak wood cabinets are out of fashion. These are just a few examples.
Do you get more when you upgrade and update your home for selling?
Of course updates do help sell your property faster than the competition. However, it does not mean that you will always end up with more money in your pocket (in a seller’s market updates would likely help you sell faster and sometimes even get you multiple offers).
Updates are essentials which any reasonable buyer would already expect if they are paying a few hundred thousand dollars for your property.
Tip: For $300-400 smart sellers can go a step further and ask for higher services of a home inspector to conduct a pre-listing inspection. This type of inspection gives sellers a heads up on any electrical, plumbing, air conditioning/ heating issues that must be updated or fixed before putting the house on the market.
What exactly is an upgrade?
In my opinion, upgrades mean features and finishes added to the property that would enhance the value of the property. Upgrades can include granite countertops, stainless steel appliances, and frameless glass doors around showers, expensive blinds (such as those from the Hunter Douglas collection), hardwood floors, energy efficient windows, high efficiency furnace and air-conditioning units, sprinkler system, sauna or steam rooms etc.
Do you get more when you upgrade?
You sure do, but the seller has to be caveat emptor – over upgrading will definitely not help. If an average price of a home on your street is $400,000 and you throw in $150,000 in upgrades, it is most likely that you will not be able to sell for $550,000 or more.
Before you spend on upgrades, ask yourself if you would enjoy those upgrades, if your upgrades increase the value of your home or if you are considering selling to either break even or make some profit as a result of upgrading.
Remember, everyone has different likes and dislikes. For example the colour of your upgraded kitchen cabinets, counters or bathroom tiles, etc. might not suit the other person’s taste.
Pricing your home based on upgrades and updates
Before you compare your property with sold homes or condos, you should separate the upgraded properties from updated properties before calculating the average sold price. Often, the sold price of one or two upgraded properties will skew the data of all other surrounding properties on your list
Thinking of selling your home or condo in Mississauga?
If you are seriously considering selling your home or condo in Mississauga contact me today for a free home evaluation! I will price your home as per the market conditions after a close look at the competition based on your home’s upgrades and or updates.
