Should I Remodel or Sell As-Is During a Seller’s Market?
How to choose a top Gig Harbor real estate agent when you buy a House in Gig Harbor by Paige Schulte, top real estate agent in Gig Harbor
Hey, Paige here, top Gig Harbor real estate agent, popping in to give you the lowdown on remodeling or selling “as-is” when the market is HOT HOT HOT!
What does the current market look like for sellers wanting to cash in on this unrelenting demand that’s skyrocketing profits for owners who put their home up for sale?
In the current Gig Harbor, WA market (just outside of Seattle and 10 minutes from Tacoma) there are 44 homes for sale, 2/3 fewer homes than 2019 during a non-pandemic era.
As a stats nerd I am following the numbers. We are seeing listings come on the market but the demand of buyers is at an all-time high. We have a record number of millennials purchasing a home for the first time, a record number of second-home purchases with the extra funds saved in 2020 or cash-out refinances, and a high influx of incoming buyers from neighboring counties and states who can now work remotely and get more for their money. And to top it all off interest rates continue to be so low that buyers consider it “free money.”
NOTE: We are flooded with an incredible buyer pool: they are well qualified, financed buyers AND many of them have stacks of cash to back up their offer price in the event of a low appraisal, making it an incredible time to sell. We call it guaranteed purchase price—the best offers have no contingencies, highest price, and highest low-appraisal protection.
If you have any questions, my “door” is always open: pop into my inbox, onto my calendar (schedule a buyer meeting), find me on Insta, or show up in my text messages at (253) 313-4093. I am always here to answer any questions you might have.
Top Seller Question: Do I Remodel or Sell As-Is?
Remodeled homes are selling for an incredible premium.
First of all there are currently very few new construction homes in progress and those aren’t built yet—so if you have a remodeled re-sale (with a yard), you have the golden egg! Many buyers want to move in within 30-90 days, not 6-9 months to wait for new construction. Add to it that their new home is likely to have a postage-size lot as well.
Due to the low interest rates and extra cash, buyers are pulling out all the stops to get a remodeled home and they can finance the whole thing. A truly TURNKEY home will sell for an incredible price with no inspection contingency and buyers even releasing their good faith deposit at time of mutual to show how committed they are.
I recently sold my almost turnkey home—we still needed to remodel the master bathroom and kitchen—but we listed for $837,000 and sold for $910,000. A similar home to mine in a desirable location sold one month later for even more because the master bath and kitchen were done. They went on the market at $849,000 and closed at an astounding $1,077,000. There is incredible demand for a home that is DONE.
That’s the power of low interest rates. Buyers can afford more and will go the extra mile to pay $10,000 or $20,000 over what they thought they wanted to pay in order to WIN…because the cost of tacking that on to the loan is insignificant.
But what about appraisal, you might ask? Remember I mentioned that many of these buyers have a “piggy bank of cash”—they are backing up their offer price with a cushion of money to bring to the table and fill the gap in the event of a low appraisal. This is a seller’s dream scenario.
So if you are thinking, “Hmmm, should I just change out the floors and paint?”, the answer is YES. The more turnkey your home is the more it will sell for.
Where To Start?
Start with the BIG home systems. If those are given the green light by your inspector (we love a good pre-inspection), then buyers will flock to a beautiful renovation.
Those items include: clean roof, clear attic (no leaks or pests), clean crawl space (clear of pests), hot water heater that is less than 10 years old, and service your furnace. If you want go the extra mile, make sure your electrical panel isn’t over-fused, or an ancient model that inspectors will call out.
Now, where to start on a remodel?
Floors and paint will take you FAR.
Clean up your curb appeal.
Update your lighting package.
Swap out dated plumbing fixtures.
Choose 2-3 areas to do a trending accent—like how shiplap was all the rage.
If you want some ideas on how to get going, we’ve got your back. Not only do we provide a design consultation with Gig Harbor’s hottest designers to help you come up with a plan (it’s included in our fees), but we also give you access to our Schulte Home Prep Squad of contractors and vendors to hook you up with so you can fast-track your remodel and get on the VIP list for project completion.
BUT WAIT, how do you afford this? We’ve got you: we will cover up to $25,000 towards home improvement projects and you can pay us back at the close of escrow, interest free.
How do you survive your remodel? This is a whole other topic, but since I just went through it with my three kids, working hubs, a dog, and a cat—oh, and a lizard—I’ll tell you it’s hard but it’s worth it. It will give you an excuse to visit your parents, take a mini trip to Seabrook or Mason Lake, or a staycation at one of the awesome Airbnbs in Gig Harbor. Make it an adventure.
And a bonus: we offer free storage for your stuff, if you want to move a boatload of furniture out so you can swap out the carpets “really quick.” We have a storage space with your name on it, free of charge when you partner with us to list your home. See, we’ve thought of everything.
Here is what we CAN’T do….we can’t help you when you say, “Why didn’t we do this sooner so we could enjoy all the updating we’ve done?” 😂
Consider this your push to get your home to “hot home” status ASAP. This market won’t last forever, so if it’s been on your mind or you only have that “one last project” to complete, hit up me or Stacey Tull to help you get to market and cash in on the most incredible seller’s market we’ve ever seen.
Call today to book a consultation to chat about getting your home to HOT HOME status. Our designers are ready to werk werk werk on your bank account’s behalf to get you more than you put into your home, and in record time.
Book a call here and in the mean time, grab your 30 day guide to prepping your home for market.
As always, thank you for stopping by—
Paige Schulte & Stacey Tull
Reina Nevius and the whole Schulte Home Prep Squad of contractors and Vendors.
Our People are Your people.
Call us today to start your search for the perfect home: (253) 313-4093
Have more questions about how to win as a buyer or get the smoothest transaction ever during your home sale? Contact me today to chat.
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