Study Finds Pre-Sale Fixups Can Boost Home Value – NMP Skip to main content

Study Finds Pre-Sale Fixups Can Boost Home Value

NationalMortgageProfessional.com
Jan 30, 2015

With housing prices at recent highs, it’s a great time to sell; and still-low interest rates also makes it a good time to buy a home, as findings from a new survey of more than 300 licensed residential real estate agents by the Consumer Reports National Research Center point to certain factors, such as smart pre-sale fix-ups and negotiable agent fees, that can financially benefit both sellers and buyers.

Fifty-three percent of real estate pros surveyed by Consumer Reports said the kitchen is among the most important rooms of the home to have in good shape before selling. Forty-two percent also said the same about bathrooms.

“You don’t have to spend a ton of money to increase the value of your home," said Dan DiClerico, senior editor for Consumer Reports. “Some simple, inexpensive fixes throughout the house can make it more appealing to potential buyers.”

Here are some other highlights from CR’s survey:

►The pros CR surveyed said the best time to sell a home is during the second quarter of the year (April through June) with April being the single best month.
►The main reasons people are selling today are because of job relocation and downsizing.
►Sixty-four percent said all or most of their buyers did their own housing-market research online.

Some noted seller slipups to avoid according to the study:
►Overpaying the commission: All agents (unless a relative or close friend) will charge a commission based on a percentage of the sale price, and may even lead sellers to believe that the fee is inflexible. In Consumer Reports’ survey, 63 percent of the agents admitted to negotiating their fees at least half of the time.  And despite the widely held belief that six percent is the standard broker’s commission, almost half of the agents surveyed typically charge four percent or less.

Overpricing a home: This is the most costly mistake, cited by 43 percent of the agents CR surveyed.  A home priced too high will just sit on the market. Expect buyers to know what the markets like; a good agent will show sellers the sale price for at least five similar homes nearby that sold in the past two months.

The full report, “How to Make Your Home More Valuable,” can be found atConsumerReports.org and in the March 2015 issue of Consumer Reports magazine.  It also features five top ways to increase a home’s value, appliance upgrade recommendations, Ratings of toilets and interior paints, tips for making a home shine online, real estate agent secrets, and more.

Consumer Reports is the world’s largest independent product-testing organization. Using its more than 50 labs, auto test center, and survey research center, the nonprofit rates thousands of products and services annually.

 

Published
Jan 30, 2015
Biden Reappoints Powell As Federal Reserve Chairman

A signal that The Fed will continue its policies as inflation surges and economic uncertainty spikes due to an emerging variant of the coronavirus. 

Industry News
Nov 29, 2021
Servion Taps Sagent For Consumer-First Servicing Tech Stack

A 7-year deal between Servion Mortgage and Sagent will equip Servion with Sagent's tech stack for performing, non-performing, and consumer experience.

Tech
Nov 29, 2021
Guaranteed Rate's Banosian Funds $2B In Total Loan Volume

The mortgage industry shouldn't be surprised by Guaranteed Rate's top loan officer, Shant Banosian, funding $2 billion in total loan volume during a record-breaking year. After all, “The Billion Dollar Man” is one of the top 5 loan originators in the U.S.

Wholesale
Nov 29, 2021
Chairman Xu Sells Off Personal Assets To Avoid Default

The Evergrande saga continues as Chairman Xu Jiayin sells off 7 billion yuan ($1.1 billion) of his personal assets to prop up the deflating property giant.

Industry News
Nov 23, 2021
OptiFunder Secures $25 Million In Capital

OptiFunder, a warehouse management system provider for mortgage originators, raised $25 million in additional capital lead by Arthur Ventures, a growth capital firm focused on high-growth, founder-led and capital efficient B2B software companies.

Tech
Nov 23, 2021
Mortgage Company Donates $100K To High School In Memory Of Fallen U.S. Navy Corpsman

Cleveland-based CrossCountry Mortgage donated $100,000 to Milan Edison High School in memory of U.S. Navy Corpsman, Maxton W. Soviak, who died while assisting in the evacuation of Americans and refugees in Afghanistan in August.

Community
Nov 23, 2021