As a real estate agent, I look at a lot of houses during the course of my business. And in doing so, I come across a lot of good intentions that have been set aside for one reason or another.
It is an easy decision to take on a new project around the house. It’s fun to plan and design a new embellishment or amenity that will enhance both the livability and the market value of the property.
But the problem is always in the execution. An unfinished project does not add anything to the value of a property that is being offered for sale. A buyer NEVER sees incomplete work as an asset.
A buyer ALWAYS sees an unfinished improvement as work to be done.
So it’s important to get those do-it-yourself jobs done prior to placing a property on the market.
Buyers want to purchase a home, not a headache!
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Good tip. I agree unfinished projects make it look like there is a lot of work to be done.
Good morning Richard,
Amen!! There are those who come on market in the middle of projects going on and I always ask myself why? Get it all done so the first impression is the right one!
Buyers always look at the unfinished as needing work. It's always best to finish the projects then place it on the market. That will bring better and higher offers.
Oh my goodness.
I get so many calls from buyers who troll the Internet for low-low priced homes for sale. The reason these properties are priced as low as they are is because they are:
and more.
Half finished new builds, half finished rehabs, half finished "fixer-uppers" are all the same. Hard to buy, need a lot of work and not for the novice "investor buyer".
Love that picture! You are right on target. Unfinished work is definitely a negative. The only thing worse, unfinished unfinished with poor craftsmanship!
Richard, May I add...get it done RIGHT? I have so many lovely homes botched by DIY projects where the homeowner did not have a clue what they were doing. In that case, for me, I would rather have the project undone.
Richard, how true it is. So does an inspector...
Also, if ultimately you know that you are going to be selling your home, don't plan a project that is SO PERSONALIZED and sometimes SO STRANGE that very few people would be willing to pay to own it.
Richard, this is so true about unfinished projects. It is best to get them finished before putting the home on the market. A very appropriate photo.
I just love this picture!
Richard right on the money, an unfininshed project spells W-O-R-K to buyers....which in turn spells Lower offer...sellers need to understand that
Most of the buyers these days have good credit and if they are a couple they have two good jobs. No time to exercise the sweat equity principle. There is the 203K loan for fixer and sellers hve to know that they are going to have to price the home low to make the number work.
Excellent advice! Harry Homeowner often bites off more than he can chew...and not only does he not finish the job sometimes, he doesn't do a very good job, either, which leads to all sorts of headaches.
Great Post and good advise for home owners! Thanks
I love the line that buyers want to buy a home, not a headache. I will use that one. This goes for items that need to be repaired and the Seller wants to go AS IS also.
Great picture. HGTV has created a lot of wanna be rennovators with disastrous results.
Richard, The picture made me giggle. Have you noticed that even interior painting seems to be above the capabilities of many homeowners.
Really? You decided to paint the room blue, but you did nothing to avoid getting the paint on the trim & ceiling? And then once it was there, you did nothing to fix it? Honestly!
Buyers will walk in to a home and immediately start attributing work to be done with a dollar value...and a headache!
Richard;
A local home was for sale and the seller did complete the project which was a room addition, unfortunately, he cut so many corners, and did such a luke warm job, it would have been better to have not completed it. Now the new buyer is having to re-do 50% of the work that was done.
So, it can be a coin toss.
Richard, this is so true. Sellers need to understand that buyers will sometimes take off thousands of dollars from their offer because they assume it's a costly item to fix or it would have already been done. This is worthy of a re-blog.
Richard, I just "pre-listed" a home that needs some TLC. As I always do, I suggested they spend the money (around here, about $500) for a home inspection and then take care of those needed repairs before we put it on the market. This couple agreed! YEAH! Usually they tell me they'll just let the "buyer" fix things they way they want. First we have to get that "buyer".
we have several of these homes in our market. I am gratfull for that I have a client that wants to buy them all up and flip them. Here I go writing another up!
My favorite stager Craig Schiller has a great line similar to yours: "people want to buy a house, not a project". He also walks from room to room pointing out the unfinished projects saying "ka-ching, ka-ching", and says that that is what a buyer is saying in his head as he sees each one. Even if you do get an offer on one of these listings, the buyer is subtracting the price of the work from the price -- even if the house is already priced well. Thanks for your post which I'm going to reblog.
There's a local listing for sale (short) that has no fully functional bathroom and it's sitting on the shelf.
Truer words have not been spoken! Buyers don't even want to see missing molding not to mention missing cabinets or half finished floors.
Richard..I agree about the planning of a project. Even the execution is fairly easy...it is the final finishing that I sometimes need to push myself on.
BUT... There are so many times that sellers want to add $ to the value for the almost finished product! HA!
Hi Richard-
This is so true! I have 3 Sellers waiting to complete projects before they can go on the MLS (their homes are "non-MLS" , so that we have permission to get them into some print marketing with a long lead time). It just isn't worth it to put the home on the market before it's ready.
Sara in San Antonio
Richard, I agree 100%. People see the negatives and that is what stays in their mind.
So true - & unfortunately we see quite a few homes where projects got started and the apparently the owners ran out of money - and now they are on the market as bank owned homes. Sad. Although potentially even worse is the new construction started in summer or fall, then the builder went bankrupt and the homes sit there unfinished and not water tight into the rainy winter season we have here in Olympia. Not a pretty picture!
If a buyer thinks they need to paint it, repair it, destroy it, or haul it off before they can live in a house, they'll move on to another property. There are too many homes on the market now, and if a house is going on the market, it has to be just about perfect to attract a buyer!
I once met a seller who had yet to finish the upper level of their modular home. I had to do a double take when they thought it wouldn't be a problem for the buyer.
I have buyers who LOVE unfinished projects, it means they get a good deal on a house that nobody else wants! Bring 'em on!
Most buyers will run from a home that has work to be finished. If any offers are made at all they will be low to cover the cost and effort to do the work.
I'm guilty of this in my own home, especially with two small children! You are so right! It looks awful to a buyer and it ends up being a big headache, especially since 95% of homeowners don't know what they are doing when they take on a project!
Is that photo an unfinished project?
I think we are all guity of having a few unfinished projects around, the problem is that they need to get done when it is time to sell.
Love the picture! Great post.
Aside from the potential buyer's seeing the unfinished project as an approaching headache, I'm also surprised at the number of listing agents who try to pretend the unfinished project isn't there when they're pricing the home for sale.
Unfortunately it seems many listing agents don't take it into account as a "liability" on the property. Then they get offended when a buyer wants to use the issue as a negotiating point over the final offer price. I actually had an agent say to me once, "well the seller feels they've already done the hard work...." Too funny.
Most unfinished projects cost far less to complete in reality than the huge deduction a buyer takes off the price of the house mentally when deciding its worth. Better to just get the job done -- buyers don't want to take on projects unless the price is a steal!
It is amazing how much a buyer will mark down a house when they see something left undone. What may cost the seller $200.00 to fix the buyer see a $1,000.00 project.
Let me add. Don't even attempt a project you know nothing about. It takes value from the property rather than add value when a project is finished and looks terrible. The other part of the do it yourself is how much of the project is up to code.
I have to say I love that picture, ain't that a sell? People just dont know what they get themselves into, they see things that at times we can not.
So true Richard. Not only the unfinished projects but the sloppy home improvements that will need to be redone also.
Great tip and great picture!
Richard,
I had missed this earlier so sorry for the delayed comment...but this rings so very true. Especially todays buyer really wants turn key....unfinished projects either say way tooooo much work, or big mistake because I would of done it differently....
My parents self contracted their home in 1995. They just finished everything this year, thanks to my help.
Very true, Richard. When my buyer's see unfinished projects, they typically start estimating in their mind what it will cost to complete the project, and then discount their offer price by that much... and more. If sellers want top-dollar, they need to get their home move-in ready.
I have 4 listings coming up where the sellers understand that they need to finish their projects, and need to repair any obvious damage. I have 2 listings that are based in the 1970's, and the sellers are working with architects to update their homes. I was an architect, so I know what needs to be done. I always advise clients to get it fixed (If they can set aside the $$ to do it, first). Due to my architecture background, this is a specialty of mine. It's only in short sales where we have to draw the line and accept the inevidable lower pirce!