5 Things to Not Bother Fixing When Selling

Your house needs work before it goes on the market. For starters, you’ll have to fix the boiler. And paint. And replace those outdated cabinets … the list might go on and on.

Given that all these tweaks cost money, you might wonder: Do I have to do everything? 

Many of these fixes are indeed necessary, says Kathleen Kuhn, president of HouseMaster, a national chain of home inspection offices.

“Any defect or condition that affects the intended function or operation of a major house system should be fixed,” she says. This would include taking care of leaks, built-in appliances not functioning properly, insect infestations, plus any imminent safety or environmental hazards.

But beyond that, it’s up to you: Sure, the nicer your home looks, the more money you’ll likely be able to fetch when selling it. But not all improvements you make offer the same return on investment. Here are some fixes that some experts say you can pass on without too many repercussions.

1. Fixing cosmetic damage

Cosmetic damage includes things such as scuffed floors or peeling paint: They don’t interfere with the function of your home, although they do make it look run-down. The good news is, a keen home buyer knows to look beyond that, says Craig Webb, editor of Remodeling Magazine.

“Sophisticated home buyers and home flippers know that cosmetic damage can be easily fixed,” says Webb. What will give them pause is the hard stuff.

“They are going to want to know that the electrical and plumbing systems are up to grade and that the utility bills are decent,” says Webb. If the home’s structural issues are sound and the “bones” are good, then you can let the surface stuff slide.

2. Updating kitchens and bathrooms

So your kitchen is woefully outdated, your bathroom avocado green (yuck). That may be OK. Really.

The reason: Many buyers these days look forward to remodeling these “fun” areas—plus, trying to second-guess what they want and have it there waiting for them is just plain unrealistic, given all the home decor styles there are to choose from today.

“Maybe you favor a French provincial kitchen and he or she likes Scandinavian modern,” says Webb. “People have very different ideas about what a perfect kitchen is or what a perfect bathroom is. It’s a big risk, and unless you know your exact buyer, it’s better not to guess. The next person will impose their own dreams on the house anyway.”

3. Doing partial fixes

If you do decide your kitchen and bathroom are so bad they’re worth redoing, don’t go halfway. Unless you can redo a whole kitchen, don’t bother with partial fixes. Older cabinets with brand-new granite countertops only highlight the old.

4. Repainting in trendy colors

We don’t care if the color du jour is violet—selecting “trendy” paint colors is yet another bad move.

The reason: Color trends come and go so fast, what might look great today will look dated tomorrow or, even if they’re totally hip, might not appeal to large swaths of buyers anyway.

“Bright colors are really trendy right now, but they don’t appeal to a wide audience,” says Samantha Hancock. So if you must paint, “keep things neutral,” advises Hancock. “Odds are the buyer is going to paint the house how they like it anyway.”

5. Renovating beyond your neighborhood’s norm

There is a saying that Webb likes to use: “Too much house for the neighborhood.” In other words, if all the houses on your block are beautifully furnished and landscaped, then it likely is worth it to spend the extra cash on your own. But if your house is the only house on the block with a well-kept rose garden and indoor dog shower, you may not get the return you hope for.

“No matter how much you try to have the jewel house to live in, you aren’t going to get the return on the investment if the rest of the neighborhood doesn’t match,” Webb says. So check out your neighbors’ homes and plan accordingly.

Experts in Residential Real Estate in Orlando

If you are buying or selling real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.

What Happens If I Have a Lien on My House?

This is a question you might face when it comes time to sell your place. Basically, it means that before this transaction can go through, you’ll have to deal with this lien, which is placed on property by entities that claim you owe them money. Here’s everything you need to know about what happens when you have a lien on your house.

What is a lien?

A lien is a legal notice that’s placed on file as a consequence of an unpaid debt. If you haven’t paid your real estate taxes, for example, the government might impose a lien on your property. A mechanic’s lien or a construction lien might be placed by a contractor who’s done work on your home but hasn’t been paid.

How a lien is found

Before a property sale can go through, a title company is brought in to find out whether or not a seller has the legal right to sell the property. To do that, the title company searches public records for liens on the property, meaning anyone who has a claim to a portion of the money should the property be sold.

Many sellers may already be aware of liens filed on their property, but some may come as a surprise, says Barbara Carrollo-Loeffler, director of consumer and residential lending at Provident Bank in Jersey City, NJ.

For instance, there may be a recent lien for which you haven’t been notified yet, or it may be so old you may have even forgotten it was there. The lien may also be the previous homeowner’s responsibility, but went undetected during your own title search when purchasing the house.

What does it mean if I have a lien on my house?

If a lien is found, the title company will contact you and inform you how much you owe—and whom you need to pay.

“The sale cannot go through unless the lien is paid or released,” explains Pete Palermo, president of Legend Title in Denver.

Payment will fall on the seller. Once you’ve paid a lien, you will get what’s called a “release of lien” from the entity that filed it in the first place. This will prove you’ve cleared the title, and it will allow the sale to go through.

To get that release, you have three options, says Todd Huettner, owner of Huettner Capital, a mortgage service in Denver:

• Provide proof (in the form of receipts or otherwise) that there is no debt owed, or that it was paid already.
• Pay the lien or agree to pay the lien at closing with the proceeds from the sale of the home.
• Dispute the lien and get a court decision requiring release of the lien without payment.

What if the lien on my property isn’t correct?

This does happen, says Huettner, usually in the case of an unreleased lien from a prior homeowner that went undetected during your own title search when purchasing the house. In that case, the title company will contact the old owner and ask for a release of lien to record.

“If the owner does not have the release, then they or the title company can contact the entity who placed the lien to get it released,” he says.

You can also hire an attorney and go to court to fight a lien, but the process can be long and costly, which may further cost you the sale. In that case, the experts say paying the lien may be your best bet in order to make the sale.

What Sellers Should Look For in an Offer

Congratulations! You’re well on your way to getting as much as possible out of what is likely your largest asset. But when it comes to picking an offer, sometimes it’s important to take a step back and recognize that your bottom line shouldn’t be your only consideration.

In many instances, the terms a potential buyer includes in the offer also play an important part. They can underscore how many hurdles you’ll have to clear to reach the closing table in a timely matter. So every seller should carefully review an offer—beyond the dollar amount—before settling on a buyer.

To help you navigate all this, we’ve outlined four important factors that home sellers should look for in an offer. Here’s everything you need to know about choosing the best one.

1. Research your preferred financing method

As a seller, you probably have an offer amount in mind that you would like the buyer to meet or exceed. But remember, a buyer needs to prove that he can afford to make the purchase—no matter what numbers are thrown around in an offer.

“If the buyer intends to get a mortgage, there should always be a pre-approval letter included in an offer on their lender’s letterhead,” says Don Norris.

And if a potential buyer makes a cash offer, ask for proof of funds before accepting it. This proof will usually come in the form of a bank or investment account statement. Each should show that the buyer has the funds necessary to complete the transaction.

Need to sell your home in a hurry? Then you may prefer an all-cash offer. This type of offer usually involves less risk and a shorter escrow period as cash eliminates waiting for a buyer’s full mortgage approval.

But seller beware: All-cash buyers have negotiation power. And they will generally want something in return for bringing a bag of money to the sale. For instance, they could offer you less than the asking price. So be sure to weigh the cons against the pros before accepting an all-cash offer over a buyer with a mortgage.

2. Look for a larger earnest money deposit

Next, you may want to pick an offer with a sizable earnest money deposit, also known as a good-faith deposit. This is a sum of money that a buyer entrusts to the seller’s brokerage firm to prove that he is serious about purchasing the home.

“A deposit that’s worth 1% to 2% of the sale price is normal,” says Kseniya Korneva. “But the higher the deposit, the stronger the offer.”

The buyer’s earnest money deposit goes toward the down payment if he eventually closes on the home. On the other hand, if the buyer breaks the contract and walks away from buying the home, you can potentially keep the deposit as a consolation.

3. Consider fewer contingencies

In real estate, contingencies are benchmarks buyers set that need to be met for the transaction to continue moving forward. For example, many buyers will want to include an inspection contingency in the purchase contract. This means the buyer will need time to have your home inspected. And if any issues are found, a buyer might ask you to make repairs before he will close on the home.

With an appraisal contingency, a satisfactory appraisal of your property must be conducted. If the appraisal doesn’t match the agreed-upon price of the home, you and the buyer will have to reach a new number before settlement.

The caveat here is that anytime a contingency can’t be satisfied, the buyer has a chance to walk away from the purchase with his earnest money deposit in hand.

Obviously, from a seller’s point of view, the fewer chances the buyer has to exit the transaction, the better. With that in mind, it’s a good idea for you to select an offer that has the fewest contingencies from the start.

“Choosing an offer with minimal contingencies is just as important as the sale price,” says Link Moser. “That’s why cash offers are often accepted, even at lower sales prices. Sellers see a cash offer as removing a lot of the risk of the transaction falling apart due to a buyer’s inability to get financing or the appraisal value coming in below the sale price.”

4. Opt for an ideal closing timeline

Finally, consider your optimal timeline for heading to the settlement table. Moving out is a lot of work, especially if you’ve lived in the home you’re selling for a while. To that end, you’re going to want to ensure that you choose an offer with a closing date that suits your needs.