To Fix or not to Fix

Many sellers have homes that need some TLC. Maybe the carpets are worn or the interior paint is due for a refresh. It is tempting to sell the house as is in a market as hot as this one. But there remains the notion that fixing the carpet and paint might yield more in the final price than the cost of the work. This is probably true. 

With a vacant property the decision is a bit easier as these types of work are more easily completed without ones personal belongings all over. But the contractor market right now is tighter than the housing market. Getting qualified people to fix stuff is hard and as such more expensive than usual. My experience over the years has been that entry level buyers of small single family homes are more likely to buy a light cosmetic fixer than say condo buyers. Although some condo buyers intend to tear out all that dated stuff if the condo is more than 10 years old anyway, the bulk of condo owners are looking for the less demanding home ownership experience. 

I have a light cosmetic fixer condo listed right now in the Village at Columbia Shores. This is a wonderful building right along the Columbia River. The seller is letting it go as is. I'll be monitoring the agent remarks and comments to see if I will advise my client to hire out for a fresh paint and flooring. I have always been of a mindset to let the market tell me what it wants, rather than trying the Nostradamus approach whereby I try to conjure up a vision of the future as if I know what the thousands of local buyers are looking for at this very moment. Even after more than two decades experience, I simply don't carry that much hubris. I have said it over and over again, "the market is cold hearted, and it doesn't care about your feelings." It will buy what it wants, and reject what it does not.

That said, patience can be a seller's best friend. Not all sellers have the luxury of time, those that do can wait for the buyer ideally suited to their home. That buyer is out there, we just are not sure when they will arrive. A buyer looking to tear out all the flooring and repaint the home to their personal taste may prefer a slightly less expensive cosmo-fixer since they are remodeling anyway.

For the seller looking for the quick sale, fresh neutral paint will almost always pay for itself at the closing table.

Autumn is Here, Get Ready Sellers

Sellers would be wise to prep their homes for Autumn weather. I wrote a blog about selling in the non-summer months and it still applies today. Rain, wet leaves, and even some snow are on the way over the next few months. Making your home shine during the wet season will give you a leg up in this hot market.

Buyers: you can do the opposite, look for houses with overflowing rain gutters and slick leaf covers walkways; be careful of course it's slick out there. Those homes will likely have a little less attention from competing buyers and will very likely sell for a little less than house that has everything together for the season.

Check out the blog post here for ideas:

Originally published October 7th, 2016 by Rod Sager

OK sellers, the leaves are starting to turn color and some trees are dropping already. Yes my friends it is in fact October and that is what happens this time of year. Sellers need to keep the gutters clear as overflowing gutters are an easy fix yet manage to suck the curb appeal away.

It seems like a simple thing but buyers need to have a positive experience when they pull up and then walk up to the house. Getting a soaking at the hands of a clogged gutter sets a negative tone before they even set foot in the home. We never want a negative tone now do we?

The further we march into the cooler, wetter autumn and ultimately the colder and icy winter the more serious buyers braving the elements are. Buyers need to look past the little stuff, but sometimes they don't. Sellers need to pay attention to details to maximize value and bring the highest offer.

Autumn is a truly magnificent time of year and real estate can be quite robust during this period. although the volume drops a little, buyers are more serious and inventory is a little tighter so it is about equal in as far as supply and demand is concerned.

I mentioned in previous posts that the market is still climbing but the steep price appreciation has moderated substantially. I believe this is a healthy condition.

Interest rates have been very low over the last several weeks even by recent standards but they seem to be yo-yo-ing up and down in the threes. Loan officers have to pay attention so as to lock buyers in on one of those fabulous lows in the cycle. In general this is still a great opportunity for buyers. Although buyers may wax nostalgic for the low prices of 3-5 years ago these low rates are amazing and that will ultimately save buyers tens of thousands of dollars over the life of the loan.

Local Government Policy Impacts Neighborhood Values

All too often Americans tend to focus on the big National Elections like every fours for President, and six years for US Senators and the bi-annual election of US House Reps. But the Mayor, City Council and State legislators are every bit as important and sometimes MORE important.

Pay attention to those local candidates and what they are saying, because your property values can be significantly moved for better or worse depending on the things local officials try to mandate or eliminate. For example the homeless situation. Many governments are making decisions that seem to encourage homelessness rather than discourage it.

Your neighborhood values will crash faster than car with its brakes failed if the homeless start camping nearby. Cities often tend to push the homeless out of nicer areas and into more modest neighborhoods which is neither fair nor appropriate. yet they do it. It seems the wealthy donors can get rid of the problem by dumping it into someone else's neighborhood.

Government officials that claim to be "compassionate" to the homeless are often the ones passing regulations that enable people to live on the streets rather than incentives for them to get a job and have a more stable housing situation.

I certainly do not have all the answers, but I will say one only need to travel around in Portland to see what NOT TO DO.

Here in Vancouver USA we have our mayoral election in off years including 2021. Unfortunately odd year general elections have much lower turnout. Madam Mayor Anne is up for reelection in November. I suggest everyone living in the city proper pay attention to all the candidates positions on various issues. No matter what happens at the State or National level, your property values are most affected by local officials and your property is likely the largest asset you have. Pay attentional and for heaven's sake VOTE!