How to significantly Increase the market appeal of your property

by Jeff Hammerberg

Recently a friend of mine called, excited that her house – which had been on the market much longer than anticipated – had finally sold. With an offer in hand, she was ready to move on with her life.

But then the buyer moved on instead, and suddenly the house was back on the market. Having experienced this twice before with other buyers, my friend felt jinxed. Realtors said that the house showed well, plenty of people looked at the property, and the asking price was reasonable. But while everything around it sold, her house languished on the market.

Upon closer investigation I was able to suggest a cure to the impasse, and decided to use her situation as an example of how to plan ahead before putting the “For Sale”sign in the yard.

The biggest impediment was that her house needed a new roof. The most recent buyer balked when his building inspector checked the property and expressed concern. My friend offered to provide a discount or repair allowance at closing to pay for a new roof, thinking that would satisfy the buyer and solve the problem.

But her strategy didn’t convince anyone, because until the roof came off, it was virtually impossible to determine how much – if any – other damage existed beneath it. There might have been extensive water damage, mold, or wood-boring insects lurking under those curled shingles. Without taking off the roof to get a closer look, it was tantamount to buying a car without first looking under the hood. So buyers were afraid they might inherit a Pandora’s box, and chose to walk away from the transaction,

Cosmetic landscaping was also needed, and some of the electrical outlets in the house required an upgrade. But for the most part, the roof was the only major issue. Buyers would look at the property and find it attractive and competitively priced. Some would even sign purchase offers. But upon closer examination, they would always back out of the deal and go elsewhere.

We talked it over and I suggested she get a fresh start by first dealing with any obvious problems and drawbacks that could be potential red flags or deal-busters.

“But I can’t afford to put a new roof on the house!” she moaned. “And nobody will want to look at the house if it’s under construction. I don’t know what to do, and it’s frustrating.” I helped her outline a plan of action – which homeowners should ideally do before listing their property for sale – and this is what happened next:

1) She hired a local building contractor to examine the house and create a “punch list” of needed repairs. These included a new roof – and any unforeseen repairs underneath the roof – upgraded electrical outlets, a few new windowpanes, and a new handrail for the back porch.

2) A landscaper was paid to rake the leaves, trim the hedges, spiff-up the lawn, mulch the flower beds, and plant some new flowers.

3) A termite inspector checked out the house and assured her that there was no evidence of wood-boring insects, which was an issue that had worried her because of the moisture seeping in under the dilapidated roof.

4) With plenty of equity in the house, her bank was enthusiastic to lend her money to do everything on her punch list, including the roof repair. She visited her loan officer and secured a loan quickly (with no out-of-pocket expenses because the loan fees were paid at closing from the profit made on selling the house).

5) Since she had cash in hand, the contractors she hired gave her projects top priority and within 20 days her totally refreshed house was ready to put back on the market.

6) She eliminated the repair allowance that she had previously offered buyers for fixing the roof, added the cost of repairs she had just completed to the price, and the house sold the following month. My friend paid off the home improvement loan at closing and walked away with a handsome profit.

Sometimes the circumstances are more complicated, but in most cases it is feasible to do repairs and sprucing-up before putting a house on the market. Those sellers who take the time and trouble to do so have an immediate advantage, because the house looks better and passes inspections easier. The potential for nerve-wracking surprises later on is minimized, and this makes buyers (and sellers) more comfortable and confident. A house that looks well cared for conveys a sense of pride of ownership, and that encourages potential buyers and has a positive influence on building inspectors.

Getting essential items done before you stick the sign in the yard can significantly increase the market appeal of your property and make a powerful first (and second) impression. It is sort of like dressing your best for a job interview.