Inside the Industry:
Good bones and no sex appeal
When listing a home, how do we market a property that is in good shape, but cosmetically dated.
A common problem
One situation that our clients face regularly is how to sell a home that, let’s say, “isn’t the prettiest.” It may be in good, even very good, condition but it lacks the trendy colours, finishes and materials that some homebuyers drool over.
As a Realtor, how do I advise my client and market a dated home?
1. Consider the whole home.
When I list a home I look it over a few times. Each look is with an eye to a different aspect of the property.
First, I look at the physical condition of the home. Are there any major repairs that are due, or renovations needed that will be a hurdle for a buyer if they’re not attended to? One of the reasons that my team and I included pre-list home inspections with our listings is so that we and our clients can have a clear idea of its potential problems, and decide what to do with them before they become an obstacle to a sale.
The second thing that I look at when listing a home is to see what it is now. Is it a perfectly preserved time capsule of the 1950’s? Is it a franken-house of various expansions and upgrades over the course of 50 years? Does it have a 2024 kitchen and a wood-paneled basement? Overall, how updated is this house and how close is it to being considered “on trend?”
2. Where does it fit in the market?
Next, it’s crucial to see where the home fits in the market as it currently is. If the home is a 1950’s bungalow, what are bungalows in the neighbourhood selling for in recent months? What’s the price difference between an updated bungalow and an “as-is?” How much difference does being on different streets matter in this neighbourhood? What would be the price at which a Buyer could buy “up” into the next category of home, for example a new infill in the same neighourhood, or a larger home?
Pricing is crucial when selling any home, but especially one that needs some cosmetic attention. We want to find a sweet spot where buyers feel like they’re getting a good deal for a home that’s move-in ready but also see the potential for future upgrades. Pricing too high may lead to longer days on the market, but pricing it fairly will encourage serious buyers who are ready to take on a few updates themselves.
We’ll carefully analyze recent sales in your area to make sure we’re competitive while reflecting the true value of your home.
All of these things need to be taken into account when listing any home, but when listing a dated home it’s particularly important to know what the home will sell for versus an updated home.
That’s because. . .
3. Not all updates are equally valuable
We want to know how much it would cost to have this home compete with other homes at the top of the price bracket for its “type,” and then see whether it’s worth the time, effort and headache for the clients.
Let’s take the earlier example of a dated 1950’s bungalow. Let’s say it has great hardwood floors, but a 1970’s wood-paneled basement, tired bathrooms and a kitchen that was updated in the late 1980’s. If the Sellers decided to repaint the whole home, drywall the basement, redo the kitchen and do some smaller trim and cosmetic updates to the bathrooms, it might cost them $100,000. If the home is in Alta Vista, where there might be a $200,000 difference in sale price, that might make sense on the balance sheet. In the older part of Orleans, where sale prices are lower overall and the price difference between updated and dated bungalows is only $50,000 (in this fictitious example), the math doesn’t work.
Finally, I stress that updates have to be worth the time, money and headache for the clients. Not all considerations for the sale of a home are monetary; some homeowners prioritize a low-stress or a quick sale because of their personality or life circumstances, or may simply not have the money or risk-tolerance for tackling a pre-sale renovation. I have a frank conversation with all of my clients about renovations and updates so that they can make the right decision for themselves.
If my clients want to take on updates so that they are competing directly with other updated homes, then I help them to source contractors and we set aside the listing until the work is done.
While you don’t need to undergo a full renovation, small updates can make a big difference. A fresh coat of neutral paint, updated light fixtures, or modernizing hardware on cabinets can go a long way toward making your home feel more contemporary without breaking the bank. We can also discuss whether professional cleaning, staging, or minor landscaping tweaks could help maximize your home’s appeal.
Even small investments can yield a high return by helping your home stand out against others in the same price range.
4. Emphasize the Positive
In many cases, it doesn’t make sense for the homeowners to invest in updates beyond painting and small repairs. The return on investment for most upgrades is uncertain unless the home simply needs one or two things to bring it up to a certain level of modernity.
In this typical case, then, what we’re aiming for is to sell the home at the top of the price range for a dated home. That means emphasizing the positive. In the bungalow example, we might focus on the layout (bungalows are appealing to a broad range of homebuyers), location factors and the lot. We emphasize what the potential of the home is, and what the Buyer’s life could be like if they bought this home.
We also create a great impression with a deep clean and staging, two other things that we include with our listings. Just because finishes are from the 1970’s doesn’t have to mean that the dust and furniture are from that era, too. A deep clean and modern furnishings can really bring a home forward (just look at our listings page for some examples in the photos) and encourage a Buyer to make a great offer.
Staging can be a powerful tool for helping buyers see beyond cosmetic flaws. A well-staged home allows potential buyers to envision how they can make the space their own. If there are areas that look particularly outdated, we can stage them to emphasize functionality and space rather than drawing attention to imperfections.
For example, a living room with outdated flooring might still shine with modern furniture and tasteful décor. Staging helps buyers connect emotionally to the space, which is key in the decision-making process.
It’s also important to disclose and acknowledge the negative. If the home has a dated basement or an older bathroom, we don’t hide that from the photos. Instead, we might proactively get a contractor’s estimate for the work to update these and provide it with the listing. Some Buyers feel that a home should be perfect, and want to negotiate backwards from the listing price over any imperfections. For these Buyers, we need to make it clear that the condition of the home was taken into account when pricing the property and that it is priced appropriately to market.
5. In short, work with what you've got.
In summary, it’s generally best to work with the house you have rather than to try to disguise it as something else. Through proper pricing, thoughtful preparation and great marketing, we can help you meet your goals for selling your house and netting you the most on your move.
If you’re starting to think about your next move, it’s never too early to give me a call.
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