Sell an old home to young buyers
Selling any home can be challenging, depending on the market. But if you have an old home and want to appeal to young buyers in their 20s and early 30s, you may need to take some extra steps.
First, you’ll need to assuage the fears of those young buyers about maintaining a home that was around during the real “Mad Men” days. Second, you’ll need to showcase the features that have the most appeal to young couples and families. The following eight tips won’t cost a lot of money, and they could reap you an early offer.
Pre-inspect your home
One of the most difficult decisions for home sellers is to figure out how much to spend on home improvements before putting the house on the market.
“I always recommend paying for a home inspection, especially if the owners are elderly and have not had the money or energy to keep the house in good repair,” says Lane Tharp, a Realtor with Coldwell Banker Residential Brokerage in Dunwoody, Ga. “An inspection will help determine if there’s anything that absolutely must be done before putting the house on the market.”
In addition to a general home inspection, Debby Strott, manager of Weichert Realtors’ Morristown West office in Morristown, N .J., recommends that homeowners get the heating and air-conditioning system cleaned and inspected. She suggests having septic systems pumped.
“This provides peace of mind for buyers,” Strott says. “You can put the service contract or reports with your marketing materials.”
Buy a home warranty
Strott recommends that sellers buy home warranties that cover repairs for the systems (electrical, plumbing, heating and cooling) and appliances in the home. Most home warranties are available as one-year policies and provide coverage while the property is on the market and after the closing.
A home warranty costs around $300 to $400 and reassures buyers that they won’t be faced with a major repair expense in their first year of homeownership, Strott says.
Offer a possible expansion or renovation plan
“Most Realtors know a contractor, so it would be fairly simple for a Realtor to get a ballpark estimate of sample fit-and-finish renovation projects such as replacing the flooring or renovating a bathroom,” says Scott Lacey, a renovation specialist with Weichert Financial Services in North Providence, R.I. “Younger buyers don’t always realize that everything they see can be changed with a renovation. If they like the home based on the location, the schools and the general style, they can be persuaded to buy if they can see the possibilities that come with a renovation.”
Sellers can pay for simple drawings that show some renovation options that would work well with the home’s configuration and its lot.
Strott recommends that sellers find out about any permit issues with an expansion such as height or setback restrictions or wetland and to include that information with marketing materials.
Provide renovation loan information
Mortgages are available that allow homebuyers to borrow money to buy the home plus money to pay for renovations. The most popular renovation mortgage program is called the FHA 203(k). The loans are insured by the Federal Housing Administration .
“Younger buyers who are looking at homes that are 20 or 30 years old are likely to look at the kitchen and baths and want to renovate,” Lacey says. “A seller can provide information about an FHA 203(k) loan with their marketing materials to show buyers that they can wrap renovation costs into their mortgage.”
Lacey says listing agents should prepare a cost analysis of a standard mortgage and an FHA 203(k) loan to demonstrate the availability of the loan program and to show buyers what the mortgage payments would be based on prospective renovation plans at various price points such as $5,000, $25,000 or $50,000.
Offer a credit for repairs
“Sellers don’t always have the money or the energy to make repairs themselves, and besides, some buyers will want to do renovations their own way,” Strott says. “You can offer a credit back for repairs, and suggest to buyers that your home could be an opportunity for them to make it reflect their own personality.”
While repair credits are often part of the negotiating process, if you know some things will need fixing, you can provide information about the credit upfront to prospective buyers, so they know they won’t have to pay for a new furnace as soon as they move in.
Lighten and brighten your home
“Homes that were built decades ago are darker with smaller windows, so to compensate for that, you need to remove the heavy window treatments and clean the windows to make sure as much light as possible is coming in,” Tharp says. “Use the brightest light bulbs you can and update your light fixtures.”
Trim shrubs covering windows, remove old carpet from hardwood floors and remove dark, heavy furniture.
Strott says, “Keep it simple: Get rid of your collections and sentimental things, so buyers can visualize themselves in the home.”
Highlight neighborhood amenities
Younger buyers often are interested in schools, even if they don’t have children yet, Tharp says.
“Your marketing materials should mention everything that appeals to young couples and families such as the location near commuter routes or public transportation, swimming pools, tennis courts, a gym, or nearby shops and restaurants,” Tharp says. “You need to think about what young buyers are most interested in, and then market your house accordingly.”
If your home has a great yard or a prime location within a subdivision close to the elementary school or a park, you should make sure that’s highlighted in your marketing, Strott says.
Paint your home in neutral colors
The old rule of thumb used to be that sellers were supposed to paint their rooms white in order to appeal to all buyers. These days, white rooms tend to look boring, especially to younger buyers. Tharp says buyers like neutral colors other than white.
“Young buyers like what I call Pottery Barn colors,” says Strott. “Check out their stores or a catalog, and you’ll see the palette has soft earth tones, off-whites, beige and pale gray. You don’t want superpersonal color choices, but you can go with a neutral and a contrasting trim color.”
How to sell an old home to young buyers?
It has been "home sweet home" for you over many years, but for younger, prospective buyers, it may need some proverbial tender, loving care.
One of the toughest questions for sellers involves deciding how much to spend on home improvements before putting up the "for sale" sign.
One way to help determine the answer is to pay for a home inspection. That way, if there's any pressing repair needed, you'll know before you get deep into the transaction, when emotions and risk might be running high.
Consider having the heating and air conditioning systems also inspected and cleaned.
Another option for an older home would be for the seller to buy a home warranty that covers repairs for major systems in the home. Many are available for one year only and provide coverage while the property is on the market and after closing the sale.
The home warranty can cost in the low hundreds of dollars and helps reassure your buyers they won't be faced with the major expense of a big repair during their first year of home ownership.