Seller Mistake #3: Over-Improving Your Home Before Selling

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Have you ever thought about selling your home and wondered what upgrades should you invest in or if it’s even worth it to invest in some modern upgrades?  

Depending on the age, style, finishes, and decor of your home, sometimes there are some updates or upgrades you can make that will provide a tremendous return on your investment. 

But you should also keep in mind there is a limit to what Buyers are willing to pay. 

You might have spent thousands of dollars when adding a hot-tub, solarium, and home theatre because you thought it would add value. 

But luxuries only add value if it’s desired by Buyers. 

While you might enjoy these added features it doesn’t always mean others are willing to pay more for it. 

There are some renovations that are proven to add value while many other renovations might contribute to your own quality of life and enjoyment, but not add value to the sale of your home. 

You should always talk to your  Realtor before investing in any major renovations to ensure your don’t spend more money then you’ll get back in return when you sell.

Too often Sellers get hung up on wanting more than their house is actually worth to Buyers and/or getting back the money they invested in luxuries for their own enjoyment and so they insist on listing at a price that is too high for the market. 

In the 1970’s & 1980’s Sellers might have listed for more than their home was worth and hoped for the best. After all – you never know until you try, right?  WRONG!

It was a different market then. Properties typically took 90 to 120 days on the market before they would sell. It was a balanced market. 

And Buyers weren’t as informed as they are today because there was no online MLS or Internet to see comparable sales.

In today’s market the reason they call it “fair-market-value” is because Buyers know what is fair. 

Of course, if you hire a great Realtor who is trained and skilled in negotiating they can often get you more than fair market value if your home is staged well, marketed well, and demand is in your favour. 

But while the best of negotiators can work MAGIC compared to a less skilled Realtor … they can’t work MIRACLES!

When Sellers insist on over-pricing their home it will typically sit on the market for a very long time. 

Which not only hurts your sale and causes you stress, but it actually helps Buyers see the value in other properties and therefore other properties sell faster. 

Sellers who make this mistake of over-pricing their home often say they’re patient and in no rush to sell. 

The problem is it isn’t just a question of time and patience. 

When a property sits on the market too long your listing can become “stale”. 

Buyers start wondering what’s wrong with it? 

Why doesn’t anyone else want this property? Why hasn’t it sold yet? 

Maybe the Sellers are desperate by now so we should just submit a low-ball offer? 

Statistics show that even if you’re willing to lower your price after a lengthy period of time on the market, if you overprice in the beginning then you’ll ultimately sell for LESS than if you had it priced right in the beginning.

In closing, while I’ve done other video posts about pricing strategies, for the purpose of today’s topic which is over-improving your home the important message here is you should be cautious not to over-improve your home because sometimes you might not get it back depending on market values & Buyer preferences. 

If you want to know more about getting your home prepared for sale in the near future I’m always happy to chat.

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