Simple Questions, Lots Of Options...

by Darrin DeRoches June 16 - 23, 2011

Sometimes you forget that not everyone understand the process of buying and selling property.  This week on Facebook I had a friend ask for some advice on real estate. Her question was simple: “Darrin, how do you know how much is too much when it comes to renovations on a property you plan on selling in the near future? And at what point do you contact a listing agent when you are preparing to sell? And should you use two different agents when you are selling and buying?”     I have personally renovated several properties, from commercial to residential and I have also consulted on countless others. I suggested I should go to a “Market Evaluation” of their property before they started the renovations. I can show them what their home is worth today and also give them an idea of what the home will be worth when they are done the renovations.  Unlike many other brokers I am honest with your expectations. If a simple paint job will do the trick — than that is it.  Kitchen and bathrooms are “as is” and reach the same goal without the time and costs of a renovations.     The fear of doing “too much” is very real.  People put in so much effort in renovating their home and once they are done they sell.  You finally have a dream kitchen, but now let’s sell.  Seems odd to do all this work and then move on.  Why not sell your home today and buy another home that needs work.  Put all the money and time in a new home that you will be living in. You get to enjoy the fruits of your labour for years to come.  For every dollar you improve your new home you will enjoy it, the same dollars you put into the old home – someone else will enjoy.  The goal is always to get top dollar, but you can market your house as a “fixer upper” and still reach full potential.  If you put in a new $20,000 dollar kitchen you will not necessarily get $20,000 more for your house, plus all the time, effort and stress.  Put that kitchen into your new property and it will be a better investment. Every home and situation is unique, so take the time to really look at the numbers and see what is best for you and your situation.     The second part of her question is do you use two different agents when you are buying and selling? No! The same agent will be able to assist you in both buying and selling.They should be accountable to get your home sold and then find your next property.  If they cannot sell your home you probably do not want them to find you a new home anyways. A good agent will price your home properly, market it and get it sold with 60 to 90 days.  If this is not achieved someone is not being realistic. One good agent can help from the start of the renovations, throughout the sale and right up to securing your dream home.  V