Suppose that your house needs a new roof, kitchen remodeling, or
bathroom upgrades. What's the best way to handle major expenses like
Don't spend big bucks on major improvements. For example, don't
install a new roof just before putting your house on the market. A
wiser plan is to give buyers a credit to cover the repair cost.
Prepare for negotiations regarding the credit by getting several
competitive bids for the corrective work from reputable local
contractors, and then base your credit on the lowest realistic bid.
Why offer to give the buyer a credit? For one thing, you can avoid a
huge out-of-pocket expense by handling the repairs this way.
Furthermore, this arrangement allows the new owners to have the work
done by their own contractor whenever they want after the sale is
completed. Last, but not least by a long shot, if the buyers have
problems with their new roof after the sale, the repair is their
problem - not yours. You aren't liable for their contractor's work.
Nor should you redo a kitchen or bathroom. You generally can't
increase your sale price enough to fully compensate you for all the
work and money you put into the project. Furthermore, you can't
second-guess the next owner's preferences in toilets, tile, and
tubs. Don't even try. You can go wrong on appliances, cabinets,
colors, finishes, and other design choices.
A much better plan is to reduce your asking price so it reflects
that your house has an old kitchen or bathroom instead of
squandering your time and money on a major remodeling job people