Where Should We Spend Our Money to Spruce Up Our Home to Sell For Top Dollar?

Dave,

We will be putting our home on the market this spring/summer.  Our home is an older home, built in 1993 and is looking somewhat dated, but it is in good condition as we have maintained it very well.  Our kitchen and bathrooms are original, but we put in hardwood floors 3 years ago and our yard is wonderful.  We do not have a lot of money, maybe $3,000 - $4,000, to spend on it before we put it on the market, but want to know where we would get the most return for doing some things to bring it up to today’s standards?  Where are the areas or what items deliver the best return?   

Ben and Chelsea, Grand Junction

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Ben and Chelsea,

Your home, built-in 1993, is at the age where you can see some significant dating of the features, but luckily you are beyond the '70s & 80's where you see dated features that are much more expensive to remedy.  There is more good news in your question, your home is in good condition and you have a beautiful yard.  Great curb appeal is hard to replace and if your yard is really wonderful, you will see an increase in showings because you have passed the “curb appeal” test.  Typically buyers get their first exposure to your home by seeing it on the internet and if the pictures look good then the next thing they do is drive by it to get a first-hand look.  The drive-by is where the “curb appeal” test takes place and if it is attractive or has the features they are looking for from the curb, then they are likely to set up a showing.  Sounds like you have a handle on the outside features, let's concentrate on the inside.

More good news, you can make a major difference inside without breaking the bank.  In my mind, the two things to look at first are paint and flooring.  Nothing beats a fresh coat of paint, not only in appearance but also in smell.  Remember, purchasing a home is a process that involves the senses and new paint sure makes things feel fresh and new.  Flooring is also key and it sounds like you made a great call by installing hardwood floors, most buyers see hardwood floors as a desirable upgrade.  If you have carpet in your home, look it over and if is worn out or worse yet, blue or rose-colored look to replace it!!  If you have a nonneutral carpet color, it will cost you showings and generally cost you money, it is just that simple.  It is the rare buyer who loves the navy blue carpet in the living room.  Also note that if your carpet is not in terrible shape, try having it professionally cleaned.  I have seen a professional carpet cleaner work miracles.  Both carpet and paint can deliver a great return.

Another area with great impact at an affordable price is lighting fixtures.  Nothing, except wallpaper, can date a home like light fixtures and you can get some really nice fixtures at an affordable price that can help transform an entire house.  Light fixtures are big impact items are reasonable prices, get rid of the polished brass, it is old school.  Also, look at doorknobs and hinges, as these are also fairly inexpensive touches that will help bring your home up to date.  If your interior doors are flat-panel dark wood doors, replacing them with paint grade doors can make a big difference, especially if you have long hallways.  It is amazing what new doors can do to lighten up a hallway. 

In the kitchen, consider cabinet hardware, a tile backsplash or a new faucet.  A nice tile backsplash can give new life to even the most dated kitchen and does not have to cost a fortune to look great.  In your bathrooms, look at new hardware, new towels, faucets, sinks. (especially if they are not neutral or white in color)

This should give you a good starting point, work your way through the items and decide what features your home needs the most and just go for it.  You do not have to do everything to make a significant impact, but sometimes not doing anything can make a big impact in the wrong way.  You are setting yourself up for success. Merry Christmas everybody! 

Dave Kimbrough

The Kimbrough Team

Should We Host A Holiday Open House?

Dear Dave,

Our home is currently for sale and we are considering having an open house to showcase our home and offer some holiday treats to the neighbors.

What do you think of this idea?  We are getting frustrated and really need to get our home sold.  We need to do anything we can to make that happen.

Thank you,

Bonnie and Roger – Grand Junction, CO

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Bonnie and Roger,

Oh, I know how you feel.  This is a common seller response when the showings get further and further apart and old man winter is bearing down on us.  Desperate times call for desperate measures, right?   Not so fast…..  Remember, this can be a hard time of year for home sales.  Statistically speaking the two month period from the middle of December to the middle of February are the two slowest months of the year….almost every year.  This is not to say that homes don’t sell during this time - they do, but in far fewer numbers than during the spring, summer and fall seasons.  Showing traffic can be slow and contracts can be hard to generate and frustrations can begin running high. 

In the real estate business we are competing for people’s time and attention year-round, but this time of year it is especially difficult.  Right now everyone’s time and attention is consumed by so many things - seasonal parties, school performances, kids sporting events, family get-togethers and Christmas shopping make it very difficult to find time to shop for a new home.  The silver lining is that buyers who are home shopping are generally serious and are not just kicking the tires.  Also, generally speaking, there are fewer homes for sale so every showing counts!

 I, personally, am not a big believer in open houses as a tool to actually sell homes.  Open houses are a very useful tool for meeting new customers and introducing them to your services and company, however, they rarely result in a buyer for the home being held open!  They do provide the seller some visual evidence that something is being done to sell their home and sometimes that is important enough to warrant an open house.  Especially during this time of year, I would suggest you trust that your agent has a marketing plan in place that is reaching the buyers who are shopping for a new home.  Lean on their marketing plan and expertise, not on an open house as a desperate effort to sell your home.  

I know the sale of your home is important, very important, but sometimes, patience is what is needed and this time of year patience is key.  For your own sanity, this is not the season to get desperate and wrapped around the axle.  I suggest taking a deep breath and enjoying the blessings of the next thirty days.  Focus on friends and family and enjoy the Christmas season.  If your home sells, chalk it up to your agent’s good marketing plan and finding the right buyer. If your home does not sell, I suggest meeting with your agent in the middle of January and adjusting your game plan to get the job done as the market pulls out of the Holiday Hangover.  Hang in there.  You will get it done, however right now may not be the time to pull out all the stops.

Dave Kimbrough

The Kimbrough Team  

Should We Decorate Our Home For Sale For Christmas?

Dear Dave,

We have had our home on the market since the beginning of October.  Now that the holidays are upon us, we would really like to be able to decorate for the holidays – but we don’t want to scare away potential buyers.  We would typically set up a couple of holiday blow-ups in our yard, as well as decorate our house with Christmas lights – our kids just love this.  Do you think that is too much?  What do you recommend when someone is trying to sell their home during the holiday season?

Thanks in advance and Merry Christmas!

Jack and Linda, Fruita, CO

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Jack and Linda,

I say, decorate and enjoy the holidays.  In my opinion a home never feels more like a home than it does during the Thanksgiving and Christmas season.  I don’t believe you will scare anyone away, but remember to decorate tastefully and try to err on the side of too little rather than too much.  Believe me, if you kids love the way you decorate the likelihood is the families that come to look at your home during the holidays will love it also. 

Remember that buying a home is still very much a “feel” thing for most buyers and the more senses you get involved and the more “like a home” you make your home feel the better off you are.  I can tell you that more often than not, when a buyer gets a feel about a home and they can picture themselves or their family living there, your chances of them making an offer go up significantly.  Also, don’t be afraid to bake some cookies, pies, a cake or at the least light a candle that plays up the season.  Also note that a little Christmas music will not hurt your cause either.  We purchased our cinnamon pine cones this weekend for less than 5 bucks and they smell wonderful.  This is the greatest time of year to have fun and get immersed in the season, enjoy it because it will be gone too soon.

The key take away here is tasteful and not overdone, yet have fun and enjoy the season.  The spirit of the holidays is contagious and my bet is someone will catch the spirit at your house this season.  Have a wonderful Christmas and don’t be shocked when your home sells because it looks so good!

Dave Kimbrough

The Kimbrough Team

After Touring The Parade of Homes, We Want To Build!

Dave,

My husband and I are in a predicament—we have been thinking of moving for a few years. We've been poking around on Zillow to see what’s available and if anything sparks our interest. We weren't having any luck, but then we attended the Parade of Homes this fall. We fell in love with one of the homes on tour. The only problem is it was out of our price range. Our Realtor has shown us a few houses since then, but we can’t stop thinking about how perfect that home is for us! We need your help making a game plan. What would be better in our current market?

Option One: Stay in our current home, and strive to save a large enough down payment so we can afford to build that same house?

Option Two: Sell our home, use the equity to purchase a house in the next price range up, live in it a few years to build more equity, and then make the jump to build our dream home?

We need your help! Thank you in advance!

Laura and Adam, Grand Junction

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Laura and Adam,

Oh my, you have what one of my friends calls the “want its” and once you get a case of the “want its” it is very hard to rid of it.  The “want its” show up when you are most unsuspecting and innocently looking at something that you may or may not really need.  While you are looking, something inside taps you on the shoulder and plants the seed of “I want that” and that is when the real trouble begins.  We have all had this disease so there is no shame in acknowledging you have it, its what you do to get rid of it that separates the men from the boys!  All kidding aside, you really do have a problem and it will take self-control and discipline to put it in the rearview mirror.   

I can tell from your question you guys are not the type to make a rash decision as both of your options are very reasonable and show financial discipline and the development of a realistic plan for the future.  There are a lot of things to consider, but option one sure sounds like it might be the best play especially when you consider that there are costs in both buying and selling that you can only incur once if you don’t do option two.  Each time you sell it will cost you on average of 6-7% and each time you buy it will cost you 1-2% and this does not include any soft costs associated with both.  Considering these costs, if you are selling $250,000 and purchasing $400,000 you will spend at least $25,000 to buy and sell.  If you don’t buy and sell in between the “dream house” then you will automatically be that much closer to your goal.  Clearly you will eventually have to sell this home and purchase the “dream home” but it illustrates that doing it twice will likely just add time to achieving the desired dream home! 

 I would also take into consideration that option one is the safer play against any economic upheaval that potentially exists during the next year or two while we grind through what is sure to be a messy presidential election cycle with plenty of potential clouds on the horizon.  I personally believe our area will remain strong over the next several years, however choice two would serve as a bit of a hedge against any potential unforeseen downturns.   

Option two might also be the right choice, especially if you are outgrowing your existing home, have had a shift in needs that your existing home does not fulfill or are just plain sick of where you live!  I am always a proponent of your home being ones “happy place” and if you are just not happy where you currently live, then option two would certainly be a more appealing choice, as I have often said “it’s not always about the money.”  My vote, on face value of your question, would be to strongly consider choice one and work hard to put the “want its” on the back burner and work hard to keep it at bay for as long as possible.  I honestly believe you will make it work regardless of your choice, as both are very reasonable and the outcome of most every decision is determined by what you make of it!  Good luck!

Dave Kimbrough

The Kimbrough Team

How do we build a home today that's easy to sell in 10yrs?

Dave,

We have purchased a lot and are beginning the process of designing our home. We are planning on being there for a minimum of 10 years, but want our design to not only fit our lifestyle and needs, but also be a design that will readily sell when that time comes. We have seen so many homes that probably fit the owner’s needs, but were built so specifically that they are hard to sell to another owner. In order to create the best design possible, what trends are you seeing in the housing markets, i.e., smaller vs larger, price ange, 3 car garages, solar systems, energy efficiency, xeriscape, ranch vs two story, RV parking, etc.. Your input is appreciated. 

Jim and Jerry, Grand Junction

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Jim and Jerry,

What an exciting time, having a new home designed and built can be a wonderful experience and a very exciting time. I will also add that it is a labor of love that can be stressful and overwhelming, but the reward at the end will ultimately be worth the effort! This is a great question, because I too have seen many homes that were designed so specifically for the owner that it makes them very difficult to sell when the time arrives for you to move on. Building your new home with the forethought of implementing features that other home buyers will find attractive is a great idea and should save you some of the heartache of selling in the future. That being said, also understand that what buyers desire now, can certainly change. Many of the things I will recommend will be what I believe to be timeless features that buyers will still want 10 years from now.

There is no doubt that buyers are trending towards smaller homes, the days of the 5000 square foot home are not over, but certainly buyers today are willing to sacrifice some square foot space to keep the purchase price down. It has been said many times before, but it is true, some homes that are 2000 square feet live like they are 2400 square feet and some live like 1700. It all comes down to a livable floor plan that is space conscious and efficient. Open floor plans generally live much larger than more traditional / compartmentalized floor plans. As far as price is concerned, you should really stay towards the lower to middle end of your neighborhood price ranges. Homes near the middle to lower end of the neighborhood price points generally lose less when the market shifts down and gain more when the market moves up, being the highest priced home in the neighborhood or area is not always the best play for long term investment and year over year appreciation. I hope that makes sense. Definitely go with a 3 car garage, as most buyers need, or want, as much garage space as possible. As a society we all have way more “stuff” than we need and instead of recycling we tend to store, thus the huge boom in rental storage units over the past 20 years. A 3 car garage, I believe is a timeless, feature that will benefit you when you decide to sell. RV parking can also be a big selling feature, as we live in Western Colorado and many people have ATV’s, boats, campers, rafts, sport vehicles etc.. and love having a place to park them on their property. Buyers here value their personal time and spending time at play and do not like having to store these items off property..

Energy efficiency is no longer a feature that is “coming” it is a feature that is here and here to stay. Building your home in an energy efficient manor is very important and will become increasingly important as building codes and buyers expectations change as time move forward. Energy Star Ratings will become more and more important and 10 years from now I believe buyers will really see energy efficiency as a big “value add” vs. homes that are not as energy efficient. Going green is here to stay and while it is not a “must” now, it may very well be by the time you go to sell. Low maintenance is good, but complete xerisacpe can narrow your buyer pool extensively. I maintain the recommendation to still have an area of grass that will allow kids, grand children, or pets to have an outside area to play or “do their business”. (pets, hopefully not the kids, but to each their own!) Professional landscaping can make a big difference in a homes value, so do not skimp or go “cheap”.

Lastly, go ranch style if you can. Going with a ranch style home will keep your buyer pool wide and deep and not cut out those buyers who do not want to deal with stairs. Ranchers almost always command more money and sell more readily than two story homes. Stairs can be a killer for some buyers and you want your buyer pool to be as big as possible. I hope this helps a little with your design, but it would appear that you are going about the design process the right way. Also, make sure to discuss these things with your builder or designer as they will have very valuable input on what sells and what sits!

Dave Kimbrough

The Kimbrough Team

Is it a good idea to buy a rental for college students or a nightmare waiting to happen?

Dear Dave,

My wife and I very recently sent our son off to college on the front range. We are considering investing in a house near the university he is attending. We would like to know your opinion on investing in a property near a university or college. Is it a good idea to buy a house that could be used as a rental for college students or is it a nightmare waiting to happen?

Any feedback you have would be appreciated!

Thanks -

Joe and Darbi - Grand Junction, CO

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I think purchasing a property is a great idea!  I would suggest you check with your financial advisor or accountant, but I would bet the investment would pay off over the course of your son’s college career.  I will add one qualifier, it will work out better if your son is also responsible and will responsibly help you maintain the property while living there.   Let's look at a quick scenario to demonstrate how you might benefit from purchasing, rather than pouring out rent over the next 4-5 years.

Let's say you purchase a 3 bedroom condo for $300,000 and put 5% down, which is $15,000. You then own a 3 bedroom condo with a monthly payment estimated at $1700 which should include taxes and insurance.  You only need one bedroom and surely your son has a couple of friends that he would like to have living with him.  Let’s assume they would be willing to pay $700 per month, which in turn makes your monthly out of pocket shelter expenses $200, which is $400-$500 per month less than having him rent.  Five years from now, assuming that your second son takes a bit longer to graduate than 4 years, and let's also assume the market has improved 5% per year for your condo, it would then be valued at $383,000.  Let's also assume that you have paid the principal down to $260,000, which leaves you with over $100,000 in equity when you go to sell.  I know there are expenses and this is not direct profit, but at the very least you should receive some return, rather than footing the bill with nothing but a diploma to show for it.  The numbers in this scenario may not be exact, but it does illustrate the fiscal advantages of owning vs. renting for your college student.

There also is a loan specifically designed for this situation and it is referred to as the “Kiddie Condo Loan”.  The requirements are designed specifically for your scenario and require that the child must live in the home and be on the loan.  The financial qualifications for the loan are done off your information, but it allows your son to begin building a credit portfolio for after he graduates.  There are several great things about this loan.  You can qualify with only 3.5% down, the loan is assumable and with today’s low-interest rates, assumable loans may be very advantageous in the future.  If your son decides to stay in his college town after school, he can assume the loan from you and take over the payments or you could sell it and have them assume your interest rate.  As you can see, there is a good case to be made for a college purchase, in town or out of town, for kids who are attending college. 

Lastly, one of the great things about University towns, their real estate generally will not fluctuate up or down as drastically as other areas, because they have built-in buyers and sellers that cycle through which generally helps ensure good demand and smooth out any other market influences.  The worst-case scenario would be that you have a rental in a college town that will be pretty easy to rent year after year.  I say, “do it and you are likely to be glad in the long run”.  Hope this helps.

Dave Kimbrough

The Kimbrough Team

Can We Take Our Fridge When We Sell Our Home?

Dave,

We've had an unexpected job change come up and have to sell our house - sadly we just did a big remodel to our kitchen and it is wonderful.  We were given some money, from my parents, to buy a top of the line refrigerator - one that I had painstakingly researched and I absolutely love! 

I want to take the refrigerator with us because we used my parents gift money to buy it, but my husband doesn't think we should.  If the refrigerator is taken out when we move, not part of the house sale, is that going to delay being able to sell our house? We're really in a dilemma as we ready for this move.

Thanks in advance-
Jennifer - Grand Junction - Redlands area

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Jennifer,

Sorry about the unexpected job change, there is some of that going around right now.  Don’t sweat this one, there are several options.   In some real estate markets it is customary to leave all the appliances, however it is not customary in our market to leave your refrigerator or your washer and dryer. It most certainly should not cost you a sale or make it harder to sell your home if you plan on taking it with you.  Make sure to have your agent note that the kitchen fridge does not stay and WHY.  Everyone, or at least almost everyone, is human and the majority of the time appreciate sentimental reasons behind why some things are done the way they are.  If you have your agent disclose that you are taking the fridge with you and it was a gift from your parents, then you are unlikely to face much of a head wind from any reasonable buyer.

Another option, one that would eliminate any confusion, would be to purchase a replacement fridge and leave it with the home after sale.  This is an option, but not one that I would recommend.   Make no mistake about it, if it is new and as nice as you say, buyers are going to want it.  The question is how understanding will they be about it and like I said, most will totally get it and there will be no issue.  By removing it prior to sale and replacing with a less expensive model, you remove the issue all together.  This is overkill, IMHO, but an option to consider. 

My final verdict, leave it there, explain why you are keeping it and if the buyer balks about it, let them move on to something else.  If your fridge is the deal breaker, then they probably need to find another house to buy that they love enough to purchase their own fridge!!  Don’t worry…..everything will be cool! : )

Dave Kimbrough

The Kimbrough Team

Can We Still Decorate For Halloween When Our Home is For Sale?

Dear Dave,

My family just loves Halloween. We usually like to go all out with decorating, but this year we have our house on the market to sell. It has been for sale for about 6 weeks and we haven’t had any offers. What do you think about decorating a house for a ‘holiday’ when it is for sale? I know that every Realtor probably has a different opinion on this, but I would really like to know yours.

Thank you,

Carrie and Tom - Fruita, CO

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Carrie & Tom,

I am a firm believer in enjoying this time of year!  I personally think it would be a crime not to decorate and enjoy the holidays.  In my opinion a home never feels more like a home than it does during the Thanksgiving and Christmas season and I see no reason not to extend that to include Halloween.  No pun intended, however I don’t believe you will scare anyone away by decorating!  I do encourage you to decorate tastefully and try to err on the side of too little rather than too much.  With Halloween, I would make a concerted effort to not decorate with things that are too gruesome or scary and make an effort to decorate with all ages in mind.  Believe me, if your kids love the way you decorate the likelihood is the families that come to look at your home during the holidays will love it also. 

Remember that buying a home is still very much a “feel” thing for most buyers and the more senses you get involved and the more “like a home” you make your home feel the more likely you will be to sell.  I can tell you that more often than not, when a buyer gets a feel about a home and they can picture themselves or their family living there, your chances of them making an offer go up significantly.  Also, don’t be afraid to bake some cookies, pies, cake or at the least light a candle that plays up the holiday season.  We have purchased cinnamon pine cones in the past and for less than 10 bucks it will fill your home with a wonderful aroma.  This is the greatest time of year to have fun and get immersed in the season, enjoy it because it will be gone too soon.  Remember time is the one thing we can’t get back, so enjoy it, have fun and make this a season to remember.

The key take away here is tasteful and not overdone, yet have fun and enjoy the season.  The spirit of the holidays is contagious and my bet is someone will catch the spirit at your house this season.  Don’t be the least bit shocked if you sell between now and the end of the year!

Dave Kimbrough

The Kimbrough Team