In theory, selling a home should be easy right now. On paper, this has all the makings of a classic seller’how To Make Money Selling Put Options market. And that should be good news for Americans who have been stuck in their homes since the mortgage crisis—or who are simply looking to move to more vibrant communities and economies, such as the towns on MONEY’s 2017 Best Places to Live list. 499,000 condo in Culver City, Calif. At the time, she was head writer for the children’s show Go, Diego!
She assumed she’d live in the three-bedroom, two-bath condo for a few years and then use the profits to trade up to a larger, single-family home closer to the ocean. But those plans were dashed less than a year after moving in, thanks to the real estate crash. Housing in the Los Angeles metro market has come roaring back. Her mortgage is back above water. And if she sold today, she’d make a profit on her condo.
That’s because while her home is gaining value, so are all the ones around her. If she sold, where could she afford to live? This is becoming a common refrain throughout the nation. There are plenty of moves you can make to sell while improving the chances you’ll be able to afford to move to your next Best Place. Be willing to put in some elbow grease. In this market, you need to make the most of the asset you currently own. You’re still likely to find a buyer—eventually—even if you don’t put in any effort. The key is not to go overboard.
A large-scale remodel may be costly and may not recoup as much as a smaller, targeted project, studies show. In addition to general decluttering, where should you start? Among the small projects that retain the most value at resale, according to a survey by Remodeling magazine, are replacing your front entry door and garage door. Those are likely to be the first things a potential buyer will notice when pulling up to your house. Also, you’ll recoup a far greater percentage of your costs on a minor kitchen remodel—think replacing old appliances, and refacing cabinets and surfaces—than on a gut renovation. 20,000 on a minor touch-up, which is about a third of what a typical major kitchen remodel costs on average nationally.
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Don’t automatically jump on outlier bids. It’s natural to want to accept whichever bidder waves the highest price under your nose. But assuming that all of your home’s bidders will be using a mortgage on the purchase, the offer price isn’t the end of the story. Their mortgage lenders will require an appraisal. If the appraisal comes in below the offer price, the lender will nix the deal unless the buyer coughs up more money to make up the difference—or you drop the price.