Portland Home Sellers’ Dilemma: Should You Fix It or Leave It?

Thinking of listing your Portland home before the summer selling season winds down? One of the biggest questions you’ll likely face is: “What needs to be repaired, replaced, or upgraded before I go to market?”

Most home repairs fall into three key categories for sellers: those necessary to pass appraisal, upgrades that could boost market value, and repairs that may be negotiated with the buyer post-offer.

Prepping for a Portland Home Appraisal

If your buyer is using a mortgage — which, according to a 2017 report by the National Association of Realtors, applies to 88% of buyers — then an appraisal will be part of the process. Even some cash buyers opt to bring in an appraiser to confirm property value.

An appraiser is hired by the lender to verify that the home is worth what the buyer has agreed to pay. If major problems are found that affect the home’s safety or livability, the lender may decline the loan.

To avoid surprises, many sellers in Portland bring in a real estate agent for a pre-listing walk-through. They’ll help spot potential issues that could flag the appraiser’s attention, such as:

• Peeling lead-based paint (especially in homes built before 1978)

• Wobbly or missing railings on stairs and decks

• Non-functioning heating, cooling, electrical, or plumbing systems

• Roof leaks or water damage

• Structural cracks or signs of foundation issues

• Water intrusion in the basement or crawl space

• A roof in poor condition or near the end of its lifespan

If your home has any of these problems, a buyer relying on traditional financing may have difficulty closing the deal. While renovation loans exist, most buyers prefer move-in-ready homes.

Do Home Improvements Add Value?

Some sellers go overboard, pouring money into last-minute remodels. But the truth is, not all improvements pay off. Many updates bring a limited return on investment.

Still, some upgrades can be worthwhile — especially if they help your home compete at the top of the price range for your neighborhood. A knowledgeable real estate agent can help you identify changes that are likely to make an impact with buyers.

Insights for Portland Home Sellers

Given Portland’s emphasis on sustainability and curb appeal, the following projects are particularly beneficial.

• Energy Efficiency Upgrades: Enhancing insulation, sealing ducts, and updating HVAC systems can improve your home’s energy score, appealing to eco-conscious buyers.

• Minor Kitchen Remodels: Updating cabinet fronts, countertops, and appliances can yield a high ROI, especially when keeping the layout intact.

• Deck Additions: Portland buyers value outdoor living spaces. Adding or updating a deck can enhance appeal and functionality.

Post-Offer Repair Considerations

When deciding on repairs to do pre-listing, it is important to remember that after having an offer accepted, buyers may request repairs based on inspections. Every inspector will find some things that need to repaired (even on new construction). Here’s how to approach these requests:

• Assess Affordability and Timeline: Determine if the repairs are cost-effective and can be completed before closing.

• Negotiate Strategically: Consider offering a credit or price reduction instead of undertaking repairs, allowing buyers to handle them post-purchase.

• Consult Your Agent: A seasoned real estate agent can provide guidance on which repairs are reasonable and how to negotiate effectively.

By focusing on high-ROI projects and approaching repairs strategically, you can enhance your Portland home’s marketability and achieve a successful sale.

If you need assistance or advice, feel free to ask!