One of the most common questions I am asked from folks who are thinking about selling is, “Should I upgrade before I sell?” Most people have wandered through new home developments or scrolled through pictures of listings and wished their own home looked as modern and chic. Model homes showcase the latest upgrades and decorating trends; for home sellers these homes are their competition, and it can feel daunting to offer an older floorplan and design. Even so, putting the time and effort into upgrades just before you sell creates doubt around whether to not it’s worth it.

One strategy in the past has been to offer a buyer credit instead of completing upgrades. At first glance, a buyer credit seems to solve both the problems of a home needing upgrades and a seller not feeling sure about the value of upgrades. After all, the new buyer might not like your choice of carpet color so, why not give them a credit to choose their own?

While it might seem like a smart idea to simply offer a buyer credit and list, there are downsides to this plan, and taking the time to update a bit on your own first could mean thousands of dollars in your pocket.

Here are a few reasons why offering a credit might not be the best strategy:

Buyer Impression – A dated home looks old and not all buyers can see the potential.
Lower Offers – Offering a credit could be viewed as high seller motivation, resulting in
lower offers.
Value Differences – You and your buyer might disagree on the value of needed
upgrades. For example, you might feel $7,500 is a fair cost for a new countertop whereas your buyers might expect considerably more; this can lead to more negotiations and lower sales price.
Home Condition – A property that shows its age can prompt the buyer to worry about the overall condition.
Loan Approval – Lenders are wary of buyer credits; in fact, upgrade credits are no longer possible. You might have a buyer unable to take advantage of the credit at all and you could lose the buyer.

Home design trends change quickly. If you’re ready to sell, it could be tempting just to list your home in its current condition. Before you just add a credit to the listing, consider some simple updating so your buyers can see the value of your home.

Need help figuring out what to do next? Get in touch today! Every house is different. We can review your home’s current value in order to help you decide what upgrades (if any) you should complete to get the most value out of your home to put the most dollars in your pocket.

Should I Upgrade Before I Sell?