Selling a home, need spending advice

[riverwed070707]

Short version:

There are a few updates we had on the roster for our home before we decided to sell. Its on the market now and I'm wondering if it makes sense to still go through with any of them. The updates we had planned (some short term but mostly long term) were:
-a new furnace (ours is 20 years old but still runs ok and I don't think our heating costs are outrageous = $200/mo gas and electric for a 2,600 sq ft house)
-new windows (Idk if ours are original to our 1965 home but they are wooden and leaky. We've put it off because a number of them are custom sized or bay windows and its going to be pricy)
-new tile flooring in the kitchen (floor is currently tile but old and cracked in some places. The rest of the kitchen has already been udpated and has a very neutral, modern style)


Long version:

DH and I have been casually looking at acreages for some time now. A couple months ago we found THE one. We contacted a realtor, ran the numbers on our current house and they worked so we promptly put it up on the market and waited. After 6 weeks we've only had one person look at it and that was last week. So far nothing from them and no feedback from their realtor.

We know we have a few factors working against us such as the time of year, we're on the less popular side of town (although growing exponentially) and our school district is lacking compared to others in the area.

Updates we've already completed in the 7 years we've owned the house include removing wallpaper from every room (seriously all of them), replacing carpet throughout, total kitchen overhaul except the floors (included counters, appliances, sink, cabinets, whole new functional layout, etc), resurfacing the wood floors in the bedrooms, adding a mother-in-law apartment to the basement (900 sq ft with 2 bedrooms, bathroom, living room, dining room, private laundry and dry kitchen. We actually rent this out for income currently but it doesn't have a separate entrance), new insulation, new garage door, fixed and updated the fireplace, privacy fence around the .5 acre lot, painted the exterior... I think thats about it but needless to say we've put in a LOT of work. I know the market has wobbled a lot since 08 when we purchased but we bought it for $165k and we currently have it listed for $179k, which I feel is a steal for everything thats been done. We've easily dumped twice that in.

So anyway to wrap up my long winded version, I'm feeling like if the issue with finding a buyer was cosmetic or update related, we'd still be getting traffic but no one is even coming through. I think we should hold out on additional spending. DH feels like every thing we can do to increase the appeal to prospective buyers is worth it, especially the floors which we can do for $1k. I tend to feel like I want to save as much as possible to put down on the new place and I'm going to be less likely to want to negotiate an offer below asking if we've dumped more into the house specifically to sell it; however, if I was going to do anything it would probably be the windows because it feels more like a need than the others and I can see why it would be a huge deterrant for a buyer because its going to be a large cost to them. I've thought about offering an allowance for windows with an offer but I think that just draws attention to the fact that they're old.

WWSAD?

[Bright]

I personally would not update besides possibly the tile. If the tile looks terrible I would spend a day laying down inexpensive neutral vinyl or tile. I would do an allowance if you had had a few showings and these were common complaints about the home. You haven't had any action or feedback from buyers so one cant say if they are seen as shortcomings. It is a hard time a year to sell. How is your agent doing on aggressively advertising your property and chasing down prospective buyers?

[riverwed070707]

I personally would not update besides possibly the tile. If the tile looks terrible I would spend a day laying down inexpensive neutral vinyl or tile. I would do an allowance if you had had a few showings and these were common complaints about the home. You haven't had any action or feedback from buyers so one cant say if they are seen as shortcomings. It is a hard time a year to sell. How is your agent doing on aggressively advertising your property and chasing down prospective buyers?

Pretty sucky in my opinion. We went with him because he came highly recommended by multiple friends who sold lightning fast but honestly it doesn't feel like he's done much at all to put the odds in oru favor. The photos he took are unflattering IMO (ie why would you make pics of the basement the first thing you see? Its the least appealing part of our house) and when I asked him to revise them nothing got done. He did schdeule an open house (which I'm not even really a fan of - I tend to feel that serious buyers prefer to scheduel a time rather than stop at a designated time) but didn't do anything to market it so no one came. Maybe thats the issue I should be looking at rather than what's wrong with the house.

We've always sold FSBO until now. We listed with a realtor because we wanted it to move quick so we didn't miss out on the acreage we found. I actually found out today that the acreage now has a sale pending and I feel gutted about it. Haven't found anything else that meets our criteria so honestly I'm not even sure what we would do if we got an offer today since we wouldn't have a place to go and I don't think renting a temp apartment is an option with 3 dogs and 6 chickens

[doingitallwrong]

If the furnace is working well I wouldn't bother replacing it, but I might have a thorough inspection done (and be sure they put an "inspected on" date sticker on it ).

I'd probably do the kitchen tile, since you say it's cracked. It's not a huge expense and to a lot of buyers, if the kitchen floor is cracked, what else is damaged that we maybe can't see?

The windows are debatable. One realtor forums, the overwhelming consensus is yes, replace the windows. You'll get 80-90% return on your investment and new windows will most likely shorten your time on the market. Most buyers want to move in and not have to make major repairs right away. (It would be different if your home in general was a 'fixer-upper', with no improvements made in the last decade or longer.) New windows also add to the curb appeal. On non-real-estate-related forums, however, most will say don't bother; as long as the house has windows that work and aren't cracked, cloudy, or falling apart, buyers won't care that much. (I suspect that presumption works better in warmer weather! Depending on your location, it can be chilly this time of year and you mention the windows are leaky -- that might be noticeable when buyers are walking through the house.)

I'd say look at other houses for sale in your area, and especially recently sold homes. That will give you an idea of what's available out there, what's selling, and whether replacing the windows would be worth it. (A comparable home that had new windows and sold for $20K more than your asking price might argue to replace the windows; a comp with new windows that sold for $3K more, or even less than, your asking price would indicate it's probably not worth it.)

[ua_guy]

It's hard to say without being able to see the property or know the location. I'm guessing you don't want to toss the MLS up here for all to see. But it would be very helpful.

In general, the fact that you've only gotten 1 person through in 6 weeks says there's something very wrong about the price or the home itself. It can also be tough to attract potential buyers with a tenant already in place in a split living/ mother-in-law situation. The market is cool this time of year anyhow, but, one of the pitfalls of listing this time of year is if the home does not move, then you're facing a very stale and weak position when the spring market comes. Any interested buyers will see the 'time on market' and any previous listings and will more aggressively negotiate and ask for concessions.

A couple of suggestions:

Is the price/sqft and other comp data accurate? It doesn't matter what you bought the home for. It matters that you are a value in the current market. Are you shooting the moon with the price?

If your realtor hasn't done any open houses, or brokers' open type events, it's time to get on it. How aggressively is your realtor marketing your house?

Were professional photos taken? And does the house show well in the photos?

Things that are obviously broken should be fixed. I wouldn't do many updates, but what's one thing you'd point out about your own house that really takes away from it's value? Is it able to be fixed, and how much would it cost to fix?

[Bright]

Pretty sucky in my opinion. We went with him because he came highly recommended by multiple friends who sold lightning fast but honestly it doesn't feel like he's done much at all to put the odds in oru favor. The photos he took are unflattering IMO (ie why would you make pics of the basement the first thing you see? Its the least appealing part of our house) and when I asked him to revise them nothing got done. He did schdeule an open house (which I'm not even really a fan of - I tend to feel that serious buyers prefer to scheduel a time rather than stop at a designated time) but didn't do anything to market it so no one came. Maybe thats the issue I should be looking at rather than what's wrong with the house.

We've always sold FSBO until now. We listed with a realtor because we wanted it to move quick so we didn't miss out on the acreage we found. I actually found out today that the acreage now has a sale pending and I feel gutted about it. Haven't found anything else that meets our criteria so honestly I'm not even sure what we would do if we got an offer today since we wouldn't have a place to go and I don't think renting a temp apartment is an option with 3 dogs and 6 chickens

Is he independent or with a company? I'd ask him again and if the photos are not changed I'd go over his head. We have sold a few and I am a stickler about not doing over a 60 day contract because of being stuck with a dud agent. He does not sound aggressive. He should be updating you every few days. I'm sorry to hear there is a sale pending on your dream property but don't be afraid to have the agent inquire if the sale in dependent on financing. On our first sale we got 4 offers in a few days and boy were we lucky. The first one had financing fail as did the second. The 3rd one was a charm. After that we will not even let the agent take an offer without proof of financing or ability to pay in full from their bank. So you never know there is always hope. If it doesn't work out there will be another dream property for you.

[riverwed070707]

It's hard to say without being able to see the property or know the location. I'm guessing you don't want to toss the MLS up here for all to see. But it would be very helpful.

In general, the fact that you've only gotten 1 person through in 6 weeks says there's something very wrong about the price or the home itself. It can also be tough to attract potential buyers with a tenant already in place in a split living/ mother-in-law situation. The market is cool this time of year anyhow, but, one of the pitfalls of listing this time of year is if the home does not move, then you're facing a very stale and weak position when the spring market comes. Any interested buyers will see the 'time on market' and any previous listings and will more aggressively negotiate and ask for concessions.

A couple of suggestions:

Is the price/sqft and other comp data accurate? It doesn't matter what you bought the home for. It matters that you are a value in the current market. Are you shooting the moon with the price?

If your realtor hasn't done any open houses, or brokers' open type events, it's time to get on it. How aggressively is your realtor marketing your house?

Were professional photos taken? And does the house show well in the photos?

Things that are obviously broken should be fixed. I wouldn't do many updates, but what's one thing you'd point out about your own house that really takes away from it's value? Is it able to be fixed, and how much would it cost to fix?

I thought about posting it, but second guessed it just because of all the unknown readers here. It would be really easy to tie my house to my name and I have a lot of personal financial information posted on this site that I don't necessarily want made public with my name

Comps is hard becuase we're in an area with a lot of new development over the last 10 years and they are in the more desirable school district. Finding something that is not new construction that is comparable to us is hard enough (on the market or sold in the last year) and its even harder finding one that isn't new and is in our school district but overall we've looked at what we can find and I do think we're competitively priced, maybe a touch high but there is very little on the market so its really hard to say.

Photos could definitely be better. I just don't think he captured it well. It was the realtor who took them and not a photographer. Do I have to dump the realtor to get new ones or do you suppose I could bring someone in and give the realtor new photos for the MLS?

[riverwed070707]

Is he independent or with a company? I'd ask him again and if the photos are not changed I'd go over his head. We have sold a few and I am a stickler about not doing over a 60 day contract because of being stuck with a dud agent. He does not sound aggressive. He should be updating you every few days. I'm sorry to hear there is a sale pending on your dream property but don't be afraid to have the agent inquire if the sale in dependent on financing. On our first sale we got 4 offers in a few days and boy were we lucky. The first one had financing fail as did the second. The 3rd one was a charm. After that we will not even let the agent take an offer without proof of financing or ability to pay in full from their bank. So you never know there is always hope. If it doesn't work out there will be another dream property for you.

He's with a company but its a small one. We chose him because of his low fee -- red flag #1? lol. Its primarily a building company here locally that developed a realty division because of demand. They charge 4% instead of the typical 6% but still give the buyers agent the full 3%. It was saving us about $3,500 to list with them which in hindsight hardly seems worth it.

[ua_guy]

I thought about posting it, but second guessed it just because of all the unknown readers here. It would be really easy to tie my house to my name and I have a lot of personal financial information posted on this site that I don't necessarily want made public with my name

Comps is hard becuase we're in an area with a lot of new development over the last 10 years and they are in the more desirable school district. Finding something that is not new construction that is comparable to us is hard enough (on the market or sold in the last year) and its even harder finding one that isn't new and is in our school district but overall we've looked at what we can find and I do think we're competitively priced, maybe a touch high but there is very little on the market so its really hard to say.

Photos could definitely be better. I just don't think he captured it well. It was the realtor who took them and not a photographer. Do I have to dump the realtor to get new ones or do you suppose I could bring someone in and give the realtor new photos for the MLS?

You can definitely update the photos. If you think they suck, then they do. That's most people's first impression and you want your house looking it's best, front and center. If the house itself isn't the first visible photo and it's not looking good, fix that immediately!

And, you are correct about open houses. Numbers show that they don't sell houses. But they generate interest and through traffic, which can lead to repeat viewings and offers. You can also have the realtor listen to and ask for feedback on the walkthrough. Brokers' opens are great. Other realtors may have clients in mind or be able to provide valuable feedback.

[creditcardfree]

Post a pic of the floor for us if you can. I thought both our homes we sold would need new carpet or vinyl. One sold in five days and the other five weeks. If it's clean and somewhat minor cracks it may not need to be done.

If the windows are clean, not foggy or cracked, or have rotten wood sashes. I also would not replace. Keep the heat a little higher ahead of showings if some rooms are cooler because of the windows. We had one foggy window and only replaced the glass, which was about $150 if I remember correctly.

[riverwed070707]

Reiterating that I think the pics we got were crummy, but here's the ONLY listing pic of the kitchen which I actually think is a good asset to the house but in this pic appears almost like a galley kitchen because it looks narrow (its not) and its open to the dining room on the end where this pic was taken from, BUT you can see the floors. They went really great with the laminate wood grain counters, golden oak cabinets with gold handles and hunter green wallpaper it had when we bought it

[creditcardfree]

Yes, there is room for improvement with the picture. I can see the upgrades, which look great! I would leave the flooring. Yes, it is something someone will likely want to change at some point, but I personally would want to pick my own flooring. You can always negotiate, offer cash towards a new floor if it is an issue for the buyer.

[riverwed070707]

Thanks CCF. Here are some pics post wall paper but before the major overhaul we did last year.

[ua_guy]

Yeah, the kitchen photo is very dark and it appears to have been taken from an unflattering angle. That's easy to turn around with a photographer.

Those floors are going to be a big job if you do them. It looks like you were trying to eliminate brown from the equation and the floor is the last man standing. That's tough to work with in a kitchen that's otherwise trying to modernize. Conversely, the whole kitchen might pop if you replace the countertops with a tan granite that compliments the floor, and go with stainless (or stainless look) appliances. That would really brighten the place up. But, that probably is more money/effort than you want to spend right now. If you did the countertops again, I'd also do an undermount kitchen sink in stainless or black composite to really set it off. But, the floors might be just as expensive. The other option--if you can fix the cracked floor, would there be a way to recolor it to something more fitting of the cabinets/countertops?

I'd also find a cabinet above the fridge that's proper width (to cover the span of the fridge), and put in a filler panel on the side that runs between the cabinet and the floor so the gap between the fridge and wall can't be seen when you walk by it. It would give it a much more "built-in" look. That's a minor detail though.

[riverwed070707]

Definitely not redoing the counters or sink again lol. And I know I'm in the minority on this but I really hate stainless appliances. Don't think there is a way to recolor the floor -- if anyone knows of options for that I'm all ears. We did paint some tile in the bathroom upstairs to match new counters but it was just a single row of backsplash tile, definitely don't think it would work for floors and all the wear they endure.

Good point on the cabinet above the fridge. We didn't replace it when we got the new one and I think it would be easy to find something to fill in the gap. Thanks for the thoughts!