Question for real estate agents

My parents will be selling their house soon. It needs updating in the kitchen, baths and flooring. Do you think it is better for them to invest in the updates and then sell or to price the house lower than the comps for a quicker sale? Which tends to work out better for the seller? I am just afraid many buyers will be turned off by the amount of work that needs to be done.

Re: Question for real estate agents

Without having seen the house and without knowing the details:

I would advise againt undertaking major renovations when planning to sell a house, for the following reasons:

1. You usually don't recoup your investment in the purchase price. In other words, spending $30K to update a kitchen doesn't translate to $30K more in your pocket when you sell the home.

2. Home upgrades and decor are taste-specific. If you spend a lot of money adding nice cabinets that are cherry wood when someone wants maple, or installing dark granite counters when someone wants light, then you have wasted your $ because there is no value to that particular buyer and they may rip it out anyway.

So I would stay away from doing big kitchen and bath renovations. I think those are best done when a homeowner is doing them to their own taste for their own enjoyment.

Flooring - I would say it depends on the condition of the current floors and how easy (and costly) it is to replace. If there's hardwood under the carpeting, I'd rip it up and refinish it, because that is not a major investment and hardwood appeals to most buyers. But I would be wary of putting it new flooring otherwise. Again, a lot of people may plan on changing it.

Clean and tidy and uncluttered goes a long way toward selling a home. Also, if you can do some cheap cosmetic stuff -- e.g., painting -- to freshen up, and maybe stage the house a bit, too (even rearranging or removing furniture can help), that may be a good idea.

You mention pricing below comps as an alternative to doing the renovations. But comparable homes will have varying prices depending on condition, so you need to look at all of the features of the comp houses and determine where your parents house fits in overall (based on how big it is, how updated, etc.). A good real estate agent can help you with this and recommend a suggested price range based on the comps. If a home is dated or needs cosmetic work, it will still sell, if it's priced right.

When your parents are ready, I'd be happy to do a comparative market analysis for them to help you figure this out!

Re: Question for real estate agents

as a prospective (and picky!) buyer, I would rather they price the house right to acknowledge the major renovations needed, and let me do them myself.