Home buyers don’t want an allowance to repair the roof, replace the carpet, redo the kitchen or repaint. Allowances are for teenagers. They want a well priced home, in a decent location, that they can move right in to without spending another dime.
Its a big fallacy that home buyers want to choose their own carpet or paint colors. If you choose a nice, neutral color carpet and nice neutral color wall paint (both things the best home stagers can help you with) most home buyers will see your home as more desirable because it is move-in-ready. They’ll be thrilled they don’t have to worry about picking out carpet and having it installed or find a painter who has time in their schedule. If your home stager can’t help you with this, then you are working with the wrong home stager.
Most home buyers are maxing out their home purchasing budget by making an offer on the nicest home they can possibly afford. They don’t have extra money to paint, install new carpet or retile the bathroom. They want to move in as soon as escrow closes, not after they have to make a lot of repairs to make their new home livable.
This Los Angeles condo was on the market for 6 months with no offers. After it was remodeled, it went into escrow the first week it was put back on the market for considerably higher than it’s original list price.
Here’s what happens when you offer a $5,000 allowance for repairing the roof that should have been replaced 5 years ago:
Here’s what happens next:
The buyer accepts your offer of $5,000 to repair the roof, and then also knocks off another 10% because they think the house is not in good condition or you are desperate…
The buyer rejects your house and moves on to the house down the street that is move in ready.
Here’s what happens when you offer a $3,000 allowance for new carpet:
Here’s what happens next:
The buyer accepts your offer of $3,000 to buy new carpet, and then also knocks off another 10% because they think your allowance won’t cover all the costs …
The buyer rejects your house and moves on to the house down the street that is move in ready and already has new carpet installed.
By not repairing and updating your home before you put it on the market, you are asking home buyers to assume risk and additional expenses. You add more stress and uncertainty to the situation. Many home buyers are already investing every penny they can get their hands on in order to purchase a home. They are unable or unwilling to purchase a home that will require repairs before they can move in. Additionally, the condition of your home may effect the appraisal causing the buyer’s lender to refuse the loan.
Want to get a Los Angeles home sold? Price it right, hire the best full service Realtor you can find, hire a professional home stager and make sure it is in move-in ready condition.
This post was originally written December 2010. It has been updated to reflect current market conditions.
Sell your real estate investment properties faster and for a higher price!
How? Have your investment real estate staged by professional home stagers at Moving Mountains Design.
As a wise real estate investor, you know you have to spend a little money to make even more money. Home staging has been proven to help homes sell faster than unstaged home, usually for a higher price. In one study, published by the Real Estate Staging Association, staged homes sold 74% faster after they were staged than when they were unstaged. That resulted in lower holding costs and less time wasted, which equals higher profits.
Following are some Los Angeles properties staged for local real estate investors. Just click on any photo to see more photos and information about that particular property.
If you are a real estate investor with assets to sell in the Los Angeles or North Orange County areas, call the home staging company that real estate investors, large and small, trust to help sell their investment properties, Moving Mountains Design. We are set up to handle multiple properties at one time and stage properties valued as low as $250,000 and as high as $7M. We will travel to stage properties outside the Los Angeles area (special terms apply).
This San Gabriel home had been on the market since December, and in June 2011. It had been on the market for 6 months and had not sold. The home was beautifully remodeled and updated, had a pool and was in a great San Gabriel neighborhood. Still, it hadn’t sold until it was staged. The buyers had seen the home multiple times before it was staged, but didn’t see fit to make an offer until they saw how much more beautiful the home was with staging furniture and accessories. They were compelled to make an offer because the perceived value of the home had increased after staging.
From the listing agent:
Stunning single family home on a larger corner lot in one of the most desirable locations in San Gabriel. This property has been completely remodeled and is ready for you to move in. It has a new roof, windows and re-finished original hardwood flooring. Beautiful updated kitchen with granite countertops and new Kitchenaid appliances.Crown molding, plantation shutters, and new paint inside and out.Short walk to coolidge elementary school. Enjoy your private yard with a pool and outdoor fireplace. Don”t miss this chance to buy a beautiful home in San Gabriel.
If you need help selling your San Gabriel, Pasadena, or Arcadia home, please call us at 626-385-8852. We know what makes homes sell™!