Putting a home on the market can be a stressful time for sellers, especially when they are worried about whether an offer will fall through, timing the sale of their home with the purchase of their next house or if the home will sell for the desired price. One of the most anxiety-inducing aspects of the home-selling process is making costly repairs and upgrades to make a home stand out.
A new survey by LendingTree, an online loan marketplace, found that sellers are planning to spend an average of more than $10,000 on repairs and upgrades to sell their homes. Millennial sellers anticipate spending $13,727 on average, which is the highest amount of all age groups.
After removing decorations and decluttering, the top three repairs and upgrades home sellers have made are fresh interior paint (48%), bathroom upgrades (45%) and new kitchen appliances (45%).
More than one in five (22%) Baby Boomers are most stressed about making costly home repairs and upgrades to sell their home. Twenty-two percent of Baby Boomers fear that their home won’t sell, compared with 15% of Gen Xers and 10% of Millennials.
Another 22% surveyed felt their real estate agent pressured them to spend a significant amount of money on repairs and upgrades before selling their home. Still, 31% of sellers reported not feeling any pressure at all.
Forty-three percent of home sellers somewhat agree that they are spending more than expected on their home sale. Meanwhile, more than half (51%) of Millennials strongly agree with that sentiment, compared with just 28% of Baby Boomers.
The 2020 Cost vs. Value report by Remodeling magazine found that exterior improvement projects yield the greatest return on investments. The three exterior projects with the highest recoup on investment are manufactured stone veneer installation (95.6%), garage door replacement (94.5%) and siding replacement with fiber-cement material (77.6%). Wood or composite deck projects and window replacement also provided high returns.
Before listing a home for sale, consider paying for a home inspection to identify issues that may need to be addressed right away. If the buyers discover the issue during their inspection, negotiating repairs could postpone or derail the sale.