Many years ago, Sue Frank invited me over to list her house. Her house wasn’t overly large, architecturally noteworthy, or even uniquely decorated. However, it had a vibe that made it special.
During our “things to fix up to get top dollar” conversation it hit me. The house was impeccable. There was nothing to do – the paint was crisp and clean, the landscaping was tidy, no funny smells in the basement – in short, Sue had already taken care of everything.
“I love living in this home and always took care of it,” Sue explained. “Many years ago I decided I would just keep up with the yearly maintenance of the home. This way I’d get the benefit of enjoying all of the money that I spent on it and when it was time to sell there would be nothing else to do.
Sue makes a great point. Why wait until it’s time to sell to start fixing up your house? If you wait, you don’t get to enjoy it, just your buyer does. Either way you’re going to spend the money, so why not do it sooner and get to enjoy the benefits.
In the years since, I’ve taken note of the TLC vibe that a home gives off. It’s a big deal and it translates into higher selling prices.
There is a 1% rule in home maintenance. A homeowner should expect to spend about 1% of a home’s value on maintenance each year. On a $500,000 house that’s $5,000 a year. In good years nothing major happens and it’s just about cleaning, maintenance and upkeep (gutters, grass and powerwashing). Other years it might be a cosmetic upgrade (painting or new carpet). Eventually something big will need replacement (roofs and HVAC systems being the big ones). When you take all the cost over time, 1% over the life of the homes seems about right.
The annual upkeep pays dividends when it comes time to sell. A well cared for house feels right the minute you walk in the door. It commands a premium price over what the average home would sell for.
The same is true in reverse: a house that clearly needs a number of little things – trim painted, broken windows fixed,weeds pulled put buyers on the defensive.
If they’re interested, they’re going to come in with a lower offer based on the sense that there are other unpleasant surprises and issues lurking ahead. They’re also going to leverage their home inspection report to their maximum advantage.
I don’t remember who bought Sue’s home, but I like to imagine that the happiness that Sue put into it stayed within those walls. For that particular transaction a Good Thing didn’t just happen – the homeowner made it happen
