What is Pre-Sale Home Improvement?
What is Pre-Sale Home Improvement?
and how it helps home sellers. . .
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| Curb appeal is obtained by the work prior to putting your home on the market. |
We recommend speaking with a pre-sale home improvement company which is focused on this topic. Many can offer free estimates and also offer deferred payments which can position your home for a quick start, and sell when you decide to list it.
These repairs include (1) market prep (or pre-market), (2) contract contingency, or (3) post home inspection.
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| Painting fences, decks, front doors are little jobs that can go a long way for home sellers. |
Market Prep (Pre-Sale Renovations):
Market prep repairs include upgrades and other items that a home seller believes might increase the value of their home or reduce the time on market. Tasks like painting, landscaping, and repairing worn or dated items are often performed during this period of the pre-sale home improvement process. They are jobs that will increase the marketability of a home once it is placed under contract.
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| Upgraded features can also help your home stand out during the sales process. |
Contract Contingency (Home Inspection Repairs)
Performed after the home is under contract. Often, a buyer will place an offer on a property and might include contingencies to address items that were recognized during the home sale/ marketing time. These items can include items like repairing a deck, roof, or items that may have been overlooked or simply no included in the market prep.
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| Home Inspectors will find things you overlooked. Don't worry, just repair. |
Post Home Inspection Repairs:
The largest part of pre-sale home improvement, home inspection repairs are items that must be addressed prior to settlement per the home inspection report. Every home inspector typically finds issues *so don't be alarmed if your home received 20 to 30 items. Most are easily repaired (e.g. new smoke detector, loose door knob, touch up paint). Home Inspection Repairs can often be costly because time is of the essence and the seller typically has few options for remedy because the inspector often specifically requests a certain measure to take ("Seller must replace, no repair _____"). Often, buyers ask for repairs or might request a credit to make repairs themselves. Providing concessions or credits to the buyer can be very costly and is never recommended. It is typical to not only compensate the buyer of the home a credit for the work, but you must also price in the time they will invest into having the work performed and risk associated with the issues. (see example below). It is always advised the home seller speaks with a "post home inspection repair" company who specializes in this type of work. Some home improvement/ inspection groups also offer deferred financing, which allows home sellers to have work performed and make no payments until settlement.
*example: A home inspector notices a leak under a toilet and request the toilet be removed and re-installed with a new wax ring. When the buyer reads the report they ask for a credit to perform the work after settlement (once they own the house). This service might typically cost $150 to $200 however, the buyer also highlights a risk that the leaking might have caused damage to the sub-floor and they are going to assume it needs to be replaced (another $150). The buyer is requesting a $400 credit to consider the cost of the service, risk of sub-floor damage, and small amount for their time to meet with a plumber, etc. Instead of the credit, the seller can have this service performed for the original quote of $150 and save $250 on this single item! If the sub floor needs replacing, that cost was already considered in the buyers request so no money is lost but the seller has the chance to save a significant amount of money by having work performed themselves.
Pre-Sale Home Improvement tasks can be stressful. Often work is performed within strict standards and depending on the time that repairs are performed, much of it will have to be professionally inspected. Be sure to consult with your Realtor and a Pre-Sale Home Improvement specialist to insure you get the highest return on your investment into the repairs and make sure to check out financing options in order to not hurt/ effect your credit on your next home purchase after the sale of your old home.
This article was written by Teris Pantazes, a recognized home improvement specialist and contributor for Realtor.com, USA Today, Fox News, CNBC, and others. Teris is a lifelong contractor and home improvement specialist and may also own several companies that may provide some of the services listed above in geographic regions mentioned. This article is in no way an endorsement of any specific company and is meant to be for conversation purposes only. Please consult with your local municipality for rules and laws pertaining to all work that is described above and do not make any financial decisions without seeking professional advice that is specific to your situation and property.
We recommend Pre Sale Home Improvement Experts, based in Baltimore, maryland with offices also in washington d.c. They help with a lot of the home inspection work we describe above.
