Thinking About Selling Your Home in the Scenic Heights Pensacola 32504 Area?
Prepping Your Older Home to Sell? Maybe you’ve owned your home for decades. If so, there are many things to consider before taking the leap into the market. One, is the market a buyer’s market or seller’s market. Second, will someone buying your home be impacted by homeowner insurance requirements. Third, what category of the market do you want to be in? Finally, if you decide you want to be the gem of the neighborhood to fetch the highest price how much will that cost you?
The first point is the market condition. Across the country and here in Pensacola Florida we are in a robust market that is advantageous for home sellers. The Pensacola real estate market has been a seller’s for over five years. The recent 18 months has seen a heightened seller’s market.
A seller’s market is when there is an inventory level of available homes to purchase standing at less than 6 months. In other words, without adding any new listings of homes the market would reach zero in less than 6 months. When the monthly inventory level is above 6 months it means it is a buyer’s market. A buyer’s market meaning the buyer has all the negotiating leverage. Having a professional on your side that understands the market will help you price the home accurately to maximize exposure to the market and obtain the highest price possible.
The second point is what concern should you have about homeowner’s insurance? Well, plenty! In America’s oldest city, Pensacola, sorry about that St Augustine, there are plenty of older homes. But the homes don’t have too be that old for insurance to be an issue.
In the mid 1960’s to the mid 1970’s aluminum wire was used in many homes in Pensacola. Heck, I have seen homes built prior to the 1960’s that had electrical work done during the mid-60’s and aluminum wiring was used. Insurance companies will not write a new policy for a new owner for a home with aluminum wiring. In fact, just recently one of my investors had to rewire his rental house so it could be sold. The bill for the rewire was approximately $7,900 and that was a great bargain. But if you are looking to sell maybe you do not have that money to spend or perhaps your house is twice as big as my investor’s which happen to be 1,200 square feet.
Besides wiring it could be the type plumbing you have, the age of the roof, and even the age of the water heater. I have seen plenty homes that had to have a perfectly fine water heater that was 20 years old have to get replaced. Insurance companies want to put the odds in their favor so as not to have to pay a claim. If you have a roof that is 15 years old…you better plan on having to replace the roof. You see if a buyer is getting a loan to purchase your home and if the buyer can not get insurance coverage because of an age/life of an item makes the house uninsurable then the buyer can’t get a loan. Polybutylene or galvanized plumbing will be a roadblock for insurance too! Just had a bid on an 1,800 square foot home that needs to be replumb and the bids came in from $4,900 to $6,500 (sometime there is luck).
I highly recommend having a Home Inspector inspect your home to find out from the roof down to the crawl space what might have to be fixed or replaced. If it is a home 30+ years old, then ask the inspector to do a four-point inspection. The four-point inspection is what an insurance agent will want on any older home, and you may want to get an insurance agent’s input.
A third point to concern yourself with is where you want to compete with. Do you want to compete for the top retail price you can fetch for your home? Would you rather do some minor things to the home and enter the market as a discounter? Either one of these choices involves risk!
You may decide to go all in and update the home. Maybe it is a new roof, rewire, update the plumbing, HVAC, counters, etc. The list can be endless, where do you stop. All of this without any guarantee as to a sale because maybe the market changes or work you have done does not meet the tastes of the public. Putting a Roman statue on display in the living might not be a good idea. So, you are risking money to make money and like any investment flying south is a possibility.
Perhaps you go the low-cost route. Even this route involves risk. The risk being that your asking price is too high based on the non-improvement.
The fourth point can be summed up this way. Like the story says getting all ready for the Gala Ball to find a suitor is no guarantee that the suitor will pick you. The same goes for putting in little effort, $$ for the effort to get noticed may bring you the bum that is not a knight in shining armor.
Selling an Older Home Sounding Good to You?
Here in the Pensacola real estate market what Buy My House Guru does is to take that Sleepy Beauty and sprinkle some love to create a masterpiece. Perhaps our approach is the right solution for you. For more information about if selling your house in the Scenic Heights Pensacola, FL area, click here or call us now at (850) 616-6377.
Sincerely Your Buy My House Guru,
Also, don’t let the unknown stop you from investing in property someday either. Contact us today to see how selling your one house today can lead to multiple properties for you down the road. Here’s a link to a brief article to start you in that direction. Call us anytime for more information at 1.850.616.6377!
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