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Seller's Market - Should You Fix It?
Leave most improvements for the buyer: In a seller's market, the rule of thumb is to leave most home improvements to the buyer. You probably won’t increase your sales price enough to cover the cost of the work and time, and second-guessing what the buyer will want in appliances, decor and finishes could cost you the sale.
 
Reduce your asking price so it reflects your older kitchen or bathroom instead of squandering time and money on a major remodeling job that people might hate.
 

Disclose any work done without a required permit: One exception to the above rule of thumb, however, is righting a wrong. That is, if you or a previous owner completed work on your home without a required permit, make it right before you attempt to sell: either

  • disclose that you did not obtain a permit,
  • or obtain a permit and either complete the work yourself,
  • or leave it up to the buyer to complete the work in the way they desire.
 
First, in many states, you and your agent are required to disclose known conditions that could affect the value or salability of your home. If you don't and a home inspector or appraiser uncovers unpermitted work, you could be liable for nondisclosure and the lender could stall the deal.
 
Ultimately, you could be required to have the local building officials inspect the work in order to obtain a permit. Before you get a permit you also may have to complete any unfinished work. In any case, if the work isn't to code, you could be forced to tear it out, especially if it's a safety hazard.
 
But that's not the worst of it. If, after close of escrow, the buyer discovers work completed without a permit and the local building department decides not to approve the work, a chunk of the home's value could become a legal issue. Any difference in value based on what was not permitted at the time of sale, becomes a point of litigation.
 
What to improve: All sellers should perform deferred maintenance repairs to fix or replace broken items and systems. Put the home and its components in good working order by replacing missing roof shingles and broken or cracked windows. Repair driveway cracks and straighten listing fences. Make sure doors, gates, lights, plumbing fixtures and other items are all working properly.
 

 		          
 

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Black Hills Real Estate (BHhomes.INFO)
2401 West Main, Rapid City, SD 57702
605.863.0806 | 605.863.0806@message.alltel.com | Lee@BHhomes.INFO
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