A pre-listing inspection gives sellers a heads-up on what needs to be repaired in their home. At the same time, sellers may want to upgrade their homes to get top dollar.
The decision of whether to repair or upgrade depends on the overall condition of the home — whether serious issues will need to be prioritized — and how much money the seller is willing to spend to reap a particular return.
It also depends on the costs and benefits they get from repairs. Before starting a repair or upgrade, determine if you will recoup the cost. An agent can help you make this analysis. You also can ask a contractor for an estimate of the work — many will offer free assessments after a walk-through.
Sort the repairs into priorities
Priority 1: Major repairs
- Cracked foundation
- Worn roof
- Structural weaknesses such as broken rafters
- Mechanical issues, including heating and cooling system failures
- Plumbing issues, such as old septic tanks that need replacing or leaky pipes
- Wet basements after rain
- Stains on a ceiling from a leaky roof
- Signs of aluminum wiring (melts easily, fire hazard)
- Drainage issues (such as a lot that directs rainwater toward a house, instead of away from its foundation)
- Signs of mold (black spots on walls in dark, cool places or a scent of mold in the home)
- Outlets in bathrooms without circuit breakers
- Signs of termite damage
Priority 2: Minor repairs
- Chipped paint
- Interior doors that get stuck
- Minor scrapes in walls
- Outlets that don't work
- Light switches that don't work
- Leaky faucets
- Burned-out light bulbs
- Windows that are hard to close and lock
- Broken doorbell
Priority 3: Wish list
- New cabinets in kitchen
- Installing a kitchen island
- Replacing old countertops with quartz
- New appliances
- Downstairs powder room
- Smart home thermostat
- A doorbell with a camera and intercom
- Refreshed bathroom decor, such as new tile or a new shower
Determine cost of repairs
- Search for general contractors through word of mouth or by internet
- Ask for at least three quotes on repair costs
- Check references, reviews, licensing agencies and the Better Business Bureau
- Make sure the contractor has insurance and is licensed
- Investigate the permits needed to complete the work
Evaluate benefits vs. drawbacks
- Understand that complicated repairs may slow down the sale of a home
- Make sure the home isn't refurbished to be substantially better than your neighbors' homes
- Priority 1 should be mandatory because it involves health and safety issues
- You may only have to focus on Priority 2 — avoiding the other two priorities — if you're in a seller's market when demand is high with multiple offers and there are no major structural problems
- Some wish list items may have to be considered if you're in a buyer's market when there are more homes for sale than buyers