Langley BC Real Estate - Does it Really Pay to Spend Money on Your Home Before Selling?

Spending money on your home before selling may seem like a false economy to many homeowners. After all, why would you want to spend money on the home you are about to sell, when surely you want to keep that money to invest in your new home?

It’s natural to feel this way, but when you’re trying to sell your home in a tough economy you want it to stand out from the rest for all the right reasons, not for all the wrong reasons.

Buyers will see Red Flags
Many homeowners keep putting off small maintenance and repair issues, especially when we know we could be moving home soon. It’s common to feel like these are not your problems any more, and we can let someone else deal with them. The problem with this is that all these small issues can add up, producing ‘red flags’. When a potential buyer sees red flags they start wondering what else is wrong – is  there an underlying problem, how much is it going to cost to fix? Unless they really love your home and want to make an offer, these red flags are going to have them walking out the door and never looking back.

Even if a buyer does not initially notice these red flags it’s possible that a home inspector will notice them. It’s commonplace for buyers to accompany the home inspector and it will soon become apparent that a home may not be all it was cracked up to be. If a buyer has included ‘subjects’ on the contract, and these include ‘subject to home inspection’ there is nothing to stop the buyer from walking away if they’re not happy with the condition of the home.

The list of potential problems could be endless, and of course even a seller is unlikely to be aware of all the problems in their home. But it’s the really obvious ones that you want to concentrate on, be they large or small.

Home Renovation Tax Credit (HRTC)
The good thing is that right now homeowners can take advantage of the new tax incentives. This means that by paying for repairs, upgrades and maintenance now, you can get back a chunk of the money later as a credit on your tax return.

The Home Renovation Tax Credit (HRTC) is the major one to consider because many different upgrades, renovations and repairs would be covered under this. You can apply for 15% of expenditures over $1000 and up to $10,000, giving you a maximum claim of $1,350.

What repairs should you carry out?
If you have a long list of problems it’s possible you can’t afford to do all of them. Prioritise the list according to importance and cost, considering whether it would be more beneficial to tackle one larger job, or many smaller ones.

For example, if your roof is leaking and needs repair this is potentially a big job and an important one to get fixed. You should also remember to repair any damage that the leak may have caused on the inside of your home such as water stains, otherwise buyers may think the problem still exists.

Smaller examples may include replacing a leaking faucet, replacing a damaged kitchen cupboard, repairing damaged flooring, or laying new sod in your yard, but these are just a few examples.

If you’re thinking of selling now or any time in the future and you know that your home has some problems but aren’t sure which ones to tackle, please feel free to give me a call or email me with your questions as I am more than happy to offer my advice.

Warmest Regards,

Andrew Szalontai - It's all about service
Langley BC Real Estate   -   778.862.5542
andrew@YourPerfectHome.ca
Remax Treeland Realty