What Will My Expenses Be?


Should I fix my house up before it goes on the market?

Unless your house is nearly new, chances are you'll want to do some work to get it ready to market. The type and amount of work depends largely on the price you're asking, the time you have to sell, and of course, the present condition of the house.

If you're in a hurry to sell, do the "little things" that make your house look better from the outside and show better inside. Read on for several specific ideas for making low-cost improvements.

What is "curb appeal," and how do I create it?

"Curb-Appeal" is the common real estate term for everything prospective buyers can see from the street that might make them want to turn in and take a look. Improving curb appeal is critical to generating traffic. While it does take time, it needn't be difficult or expensive, provided you keep two key words in mind: neat and neutral.

Neatness sells. New paint, an immaculate lawn, picture-perfect shrubbery, a newly sealed driveway, potted plants at the front door -- put them all together, and drive-by shoppers will probably want to see the rest of the house.

Hand in hand with neatness is neutrality. If you're going to repaint, stick to light, neutral colors. Keep the yard free of gardening tools and the kids' toys. Remember, when a family looks at a house, they're trying to paint a picture of what it would be like as their home. You want to give them as clean a canvas as possible.

What should I do to make the house show better?

First, make your house look as clean and spacious as possible. Remember, people may look behind your doors -- closet and crawlspace doors as well as those to the bedrooms and bathrooms. So get rid of all the clutter; have that garage sale and haul away the leftovers.

After you've cleaned, try to correct any cosmetic flaws you've noticed. Paint rooms that need it, regrout tile walls and floors, remove or replace any worn-out carpets. Replace dated faucets, light fixtures, and the handles and knobs on your kitchen drawers and cabinets.

Finally, as with the outside of your house, try to make it easy for prospective buyers to imagine your house as their home. Clear as much from your walls, shelves, and countertops as you can. Give your prospects plenty of room to dream.

Use the ERA "Show & Sell" Checklist on the following page to get specific ideas on how to make your house look its best. Additionally, Ask your agent for any company brochures or videos on the subject. Such materials are usually free and extremely helpful to most homeowners.

Should I make any major home improvements?

Certain home improvements that are useful to almost everyone have been proven to add value and/or speed the sale of houses. These include adding central air conditioning to the heating system, building a deck or patio, basement finishing, some kitchen remodeling (updating colors on cabinets, countertops, appliances, panels, etc.), and new floor and/or wall coverings, especially in bathrooms. Improvements that return less than what they cost are generally items that appeal to personal tastes, like adding fireplaces, wet bars, and swimming pools, or converting the garage into an extra room.

The challenge that comes with any home improvement designed to help sell your house is recouping your investment. There's always the risk of over-improving your house -- that is, putting more money into it than neighborhood prices will support.

So how much is too much? Professional renovators have found that, no matter how much you improve any given house, you're unlikely to sell it for more than 15% above the median price of other houses in the neighborhood, whether you do $1,000 worth of work or $50,000. That's why you might want to ask your agent's opinion about the viability of recouping the cost of any major renovation you have in mind before you start the work.

Should I do the work myself?

If you have the time and talent, do-it-yourself improvements are the most cost-effective way to go. Painting, wallpapering, replacing cracked trim and old plumbing fixtures -- the difference between work done by a competent amateur and a professional is usually time and money. Just make sure you don't tackle something you can't handle -- this is no time for "on-the-job training!" If you're not experienced, it may be worth calling in a professional.

Larger jobs involving mechanical systems (heating, electrical, plumbing, etc.) or work that must meet local building codes are another story. Even if you or the family handyman know exactly what you're doing, it's not a good idea to engage in this type of work unless you're licensed to do so. Your efforts could make you responsible for more than you realize if something you worked on goes wrong after you sell.

Am I liable for repairs after I sell?

In certain situations. If the buyer's inspection reveals major problems with your house's structure or mechanical systems (heating, electrical, plumbing, etc.), the buyer may wish to negotiate the price downward on the basis of anticipated repair costs. So even though the repairs won't be made until after the sale, practically speaking, you'll be paying for them.

Sometimes, repairs may be required before the transfer of title takes place. This is especially true in sales that involve financing that's insured or guaranteed by the government (FHA/VA loans, for example).

You may have also heard about lawsuits involving sellers who failed to disclose major problems before the sale -- like an addition to the house that wasn't built to code. Most states now maintain very specific disclosure laws that require sellers to disclose any pertinent information relative to the condition of the property. For example, most states require sellers to notify buyers about the presence of any lead-based paint. It is important for you to be knowledgeable about your state's disclosure laws.

These are just a few good reasons to retain a lawyer or agent who knows as much about the condition of your property as you do. It's also a good idea to get the buyer's written acknowledgment of any major problems when you accept their offer.

What about home warranties? Are they available to sellers as well as buyers?

Yes they are, and they're worth investigating. It's our belief that an Home Protection Plan for ERA is one of the best selling points you can add to your house. In fact, a 1996 survey conducted by an independent market research company for ERA shows that houses covered by the Home Protection Plan for ERA sell an average of 15 days faster than comparable houses without the protection.

It's easy to see why. After a buyer has invested substantial cash savings in a down payment and moving expenses, the last thing they want to worry about is a costly home repair. With the Home Protection Plan for ERA, they don't have to.

The warranty offers protection for you and your buyer, covering repair or replacement costs for breakdowns to most major systems and built-in appliances up to a year or more after the date of closing. In many states, there is no additional cost for coverage to sellers who provide coverage for their buyers except for a small deductible if you make a claim. And when you consider the returns -- a quicker sale, a better chance of selling, and the peace of mind that comes with knowing 24-hour emergency service is always just a phone call away -- it's hard to imagine a better investment.