What Fixes Best Attract Buyers?

Cosmetic or Functional: Which home improvements are best when selling a home? It’s an important consideration for homesellers with limited finances.

As long as the noncosmetic improvements required aren’t something like a broken furnace or a leaky roof that need an immediate fix, Developments suspected that aesthetic fixes may be the way to go. When we walk into an open house we’re more likely to stay if the surroundings are attractive. We asked a few folks in the real-estate business for their thoughts:

To get buyers in your door, you need curb appeal, says Larry Ohrberg, an agent with Weichert, Realtors — Chapman & Associates, located in the Memphis area. Often, it’s the cosmetic features of a home that best attract buyers, he says: “Right away, they are ready to spend that extra $20,000 because they want that $500 stainless-steel sink.”

The kitchen and baths can make or break a sale, so it’s essential to bring these rooms up to date before placing a home on the market, notes Gopal Ahluwalia, vice president of research at the National Association of Home Builders. Presenting a clean interior with fresh paint and flooring has a “tremendous impact,” he adds.

Whether you decide to pursue the cosmetic or noncosmetic fixes first, you can do so in a way that will enhance your position with potential home buyers, says Jim Gillespie, president and chief executive officer of Coldwell Banker LLC. He suggests getting a professional home inspection and cost estimates for all needed repairs before placing a home for sale. Put that inspection report on the kitchen table so it’s visible to buyers, and let it be known (in the real-estate listing, etc.) what fixes were made and that the buyer will be compensated for needed repairs that haven’t been completed, he says.

"Offer cash back at the closing to take care of the other problem if the seller meets your full-price offer,” he says. “That way, you are telling your seller that you will correct all of this.” Or, you can give a credit — which will be taken out of the sale’s proceeds — to be applied to the needed fix, he says. Also offer a home warranty, he says. “Then the buyer will know that if the furnace goes out, it will be covered,” he says.

Readers: Would you pursue cosmetic fixes first when listing a home for sale? As a buyer, what would sway you most — good looks or a new furnace? — Lauren Baier Kim

From the Wall Street Journal Online
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