Home Updates That Actually Pay You Back When You Sell

 

---

Planning to sell this spring? While you may be tempted to hold off until the first blooms or the spring showers hit, that's actually waiting too long to get started by today’s standards.

Buyers have more options than they did a few years ago. So, it's worth it to tackle repairs now and make sure your house is set up to stand out. Because you don’t want to be caught scrambling right before the spring rush. Or, running out of time to do the work your house really needs. 

The key is focusing on updates that actually matter. And that’s exactly where return-on-investment (ROI) data comes in handy.

Which Projects Tend to Pay Off?

Every year, Zonda looks at which home improvements deliver the most bang for the buck when you go to sell the home. And the results can be a little surprising.

The green in the chart below shows the updates where sellers have the biggest potential to add value based on that research:

While there's a wide range of projects represented in this data, the cool part is, some of the top winners aren’t big to-do's. They’re just swapping out doors.

Small Updates, Big Visual Impact

This goes to show little projects can have a big impact. So, you don’t have to spend a fortune. And you don’t need to tackle everything on this list. But in today’s market, doing nothing can work against you.

Now that buyers have more homes to choose from, a lot of them are going to opt for what’s move-in ready.

The best advice? Focus on what your house needs, whether it’s listed here or not – like the repairs you’ve been putting off. A front door or shutters in need of a little TLC. Piles of leaves in the yard. Scuffed up paint where your kids play inside. Those details matter too.

Mallory Slesser, Interior designer and Home Stager, explains it to the National Association of Realtors (NAR) this way:

“If you’re looking for affordable updates that pack a punch, dollar for dollar, I would say painting; changing out light fixtures; changing out hardware; maybe new draperies or window treatments. Those are all cost-effective ways to make a big statement. It really changes the space.”

These seemingly small things help buyers focus on the home itself – not the work they think they’ll have to do after moving in. And that’s paying off for other sellers. Buyers are often willing to spend more on homes that feel well cared for, updated, and move-in ready.

This Chart Is a Starting Point, Not a Strategy

Here’s the important thing to remember. National data like this is a guideline. Buyer preferences are going to vary by location, price point, and even neighborhood. That means a project that boosts value in one area might be unnecessary (or even overkill) in yours.

That’s why the first step should always be to talk with a local real estate professional before you start.

An experienced agent can help you answer questions like:

• Which updates do buyers in your market expect?
• What can you skip without hurting your sale?
• Where will a small investment make the biggest difference?
• Is it better to update, or sell as-is?

That guidance helps you avoid over-improving and under-preparing.

Bottom Line

If you’re looking to sell this spring, you still have time to make updates that help your home stand out – without taking on a full renovation.

If you’re not sure where to start, let’s talk through what makes sense for your house. A quick conversation can help you prioritize the updates that’ll pack the biggest punch.

What’s one upgrade you’ve been thinking about – and wondering if it’s worth it?

The Credit Score Myth That’s Holding Would-Be Buyers Back

 

---

Would-be homebuyers aren’t sitting on the sidelines because they don’t want to buy. They’re sitting out because they think they can’t. And sometimes, it’s their credit score that’s holding them back.

According to a Bankrate survey, 2 out of every 5 (42%) Americans believe you need excellent credit to qualify for a mortgage. That may be why, when renters are asked why they don’t own yet, “my credit isn’t good enough” comes up often.

Maybe you’re in the same boat. You look at your score, see it’s not where you want it to be, and assume buying your first place just isn’t realistic right now.

But here’s what you need to know.

Even though a lot of people assume you need flawless credit to buy a house, that’s not necessarily the case.

You Don’t Need Perfect Credit To Buy a Home

So, where’s this myth come from? Part of the confusion stems from the fact that the typical homebuyer today does have a fairly strong credit score. In fact, according to data from the NY Fed, the median credit score for all buyers is 775.

But that doesn’t mean you need a score that high to qualify.

Looking at recent homebuyers, a number were able to get a mortgage with scores below that threshold. Data shows 10% of scores were around 660. Which means some were higher than that and some were lower, but the median in that lowest 10th percentile was around that range (see graph below):

So, even if your score isn’t as high as you want, that doesn’t automatically close the door. FICO explains there is no universal credit score you absolutely have to have when buying a home:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single ‘cutoff score’ used by all lenders, and there are many additional factors that lenders may use . . .”

The best thing to do is to talk to a trusted lender to see what’s possible for you. Because a portion of buyers are buying with scores in the 600s – and maybe that means you can too.

Bottom Line

Your credit score is important. But that doesn’t mean it has to be perfect.

If credit has been the reason you’ve been waiting to buy a home, it might be time to take another look at your options. If you want help understanding where you stand and what your next step could be, connect with a local lender.

You don’t need to have everything figured out to start the conversation.