If you’re currently looking to purchase a home, you’re likely considering how much wear and tear that property endured over the years. Unless you buy a brand new home, chances are likely that the home has suffered considerable stress, even if the previous homeowner was prudent and maintained the property’s condition.
Wear and tear on a home is inevitable, and most homeowners find it easy to accept this concept. The degree to which your home has been used or has simply aged varies tremendously. You might find a home built in 1883 is substantially better than a home built in 1983. This is why you can’t look at the age of the house to determine its potential value.
Homebuyers and sellers must consider the state of the property they’re working with. If a home suffers substantial wear and tear, sellers may decide to invest some money into revamping the house to make it more attractive to buyers. At the same time, a buyer may purchase a home that does not have additional repairs to take advantage of a lower price, deciding to upgrade the property in the future and on their terms. Either way, each party must decide which option makes the most sense for them, determining how much TLC they want to put into or see reflected in their respective home.
What Does “TLC” Stand For?
TLC is an abbreviation that stands for “tender loving care.” In the real estate market context, this means ensuring that any properties you own or invest in are well-maintained.
What is TLC?
TLC is an all-encompassing term that can include various types of care, such as lawn care, cleaning exterior features, appliance maintenance, and more. Whether or not a property has been well-cared for is one of the first things people notice. The average American homeowner spends about $4,000 yearly on various property maintenance and repairs.
Naturally, buyers will want to buy a home that has been well taken care of and will be easy to move into. Many potential homebuyers look for move-in-ready homes that do not require renovations, large projects, or that place a sizeable financial burden on them in their early years of homeownership. Keeping this in mind, sellers will want to make sure their home is appealing to buyers as it can be.
Both buyers and sellers consider TLC when deciding what to do with their property before putting it on the market or purchasing a home at a certain price. If a prospective seller invests $10,000 into upgrades and improvements, will the value of their home increase by more than $10,000 or less? Alternatively, should a prospective buyer ask the seller to add some TLC to the home, or should they buy it as-is for a lower price and eventually make the upgrades on their own? While the answer varies by property, it is important to take a closer look at TLC and how it might affect the sale of a given home.
How Does TLC Affect a Property’s Value?
TLC can have a tremendous impact on a property’s value. In some cases, investing just a few hundred dollars in the maintenance of a property can add $1,000 or more in value. This is something that all current property sellers, as well as future property sellers, should seriously consider when determining whether or not they want to invest in TLC improvements.
Of course, the extent to which your property’s value will be affected by additional TLC will depend on several factors, such as the types of improvements and care you are investing in. For example, while painting the outside of the home is an affordable fix that can offer a lot of value, expensive improvements such as adding a pool might not always provide such a direct return.
Other factors, such as the general state of the housing market and the competitiveness of your neighborhood, might also play a role (for example, if there are a lot of available buyers, TLC might not be as necessary). Regardless, it is clear that caring for and improving your home will directly impact its underlying value. And if you are about to make a major decision, such as selling your home, then committing to TLC will be even more critical.
How Can Sellers Add TLC to Their Property?
You may have previously heard someone say, “this house could use some TLC.” In the world of real estate, what this generally means is that for the house to be considered acceptable to the majority of potential homebuyers, you will need to make a few basic changes.
The question that remains is, which changes should you invest in making? After all, making critical pairs to the foundation will be much more urgent than replacing your bathroom tiles. Additionally, you’ll want to think about the return on investment you get for all of the changes that you make. In some cases, costly and inconvenient upgrades like removing a popcorn ceiling may provide value for a potential homeowner who does not have the time or energy to complete such a task.
If you are looking to give your home a bit of the TLC it needs to thrive, be sure to keep these things in mind
Don’t be afraid to do it yourself
If you can make any improvements to your home on your own, you will certainly get a lot more bang for your buck. Of course, there will be some improvements that will require you to hire an outside expert. Improvements like deep cleaning, basic landscaping, painting, and scrubbing are all tasks a lot of people can do themselves. Homeowners can use internet resources and guides to complete a substantial amount of repairs and upgrades on their own.
That being said, homeowners should know their limits and understand that they may need to hire a professional for projects from time to time.
Hire an Inspector
An inspector can provide a comprehensive overview of every home component, including its structure, systems, and everything in between. The vast majority of home sales use an inspector before closing. The inspector can catch hard-to-notice problems with a home, giving the owner a chance to see room for improvements before placing their property on the market.
Focus on First Impressions
Visually appealing homes can sell for a higher price. Put yourself in the shoes of a prospective buyer and ask yourself, “what do I notice first?” Overgrown plants, foundational cracks, mold, and other visually unappealing features can make a home look unattractive, but are fairly easy and cost-effective to fix.
Be proactive
Many people will wait until something goes wrong before making any major investments in their property. Even with great homeowners insurance, investing in regular upkeeping will usually be much less costly than replacing an entire system.
For example, the average air conditioner costs about $3,000. But the average HVAC maintenance only costs about $75. Investing in these occasional upkeeps will almost always be worth the cost.
There are psychological benefits of TLC as well. If a prospective buyer is visiting your home and they can tell you care about your property, they will be much less likely to suspect that the house has any hidden problems. Additionally, looking at a home that has been well cared for will also likely improve their overall view of the neighborhood, which will make them willing to pay more.
Is it Worth Investing in TLC?
Whether it is worth it to invest in TLC will depend on several factors like the property’s age, the current housing market, and the condition of wear and tear on the home. For example, if somebody has already made an offer for your property before even seeing it, there likely won’t be as much of a need to invest in it further.
In a competitive seller’s market where homebuyers look to purchase whatever property they can get their hands on, sellers will not need to invest as much TLC into the property. However, they may need to add additional features and front the cost of repairs and maintenance to convince buyers to go with their home in the slow season.
Homeowners who decide to invest in TLC can also make costly mistakes when deciding on what to improve in their homes. Generally speaking, homeowners should not use TLC upgrades to integrate a new feature or amenity into their home and instead approve upon current eyesores and flawed or broken areas in need of repairs.
Conclusion
Investing in TLC can go a long way toward making your home more appealing. With several types of repairs and routes to explore, homeowners can spend a wide range on their improvement costs. The key then becomes finding out which improvements bring the most return on their investment. Whether you’re looking to take on a project like fixing the roof or applying a more cosmetic treatment to a bathroom, improvements can greatly increase your home’s value. Just be sure to compare costs carefully and be willing to hire outside help when needed.
