Why do people wait until they sell a house to fix it up, instead of fixing it up sooner and enjoying it first?

Question

Are they concerned that they will be so rough on their improvements that they would need repaired anyway before selling?
Just trying to figure out the logic...never made sense to me why some live in a dump, only to fix it up before moving.
Sure they get more money at the sale...but they would get the same money anyway and enjoyed living in it, had they improved sooner...not to mention appreciative neighbors.

Answer 1

Greed
Apathy
Laziness...
pick one

Answer 2

For some people, the answer may be laziness, but if you are a responsible homeowner who does necessary repairs in a professional manner as needed, then the major remodels are a matter of money. Or lack of it.

Once you own a house, you'll understand. You're constantly putting money into it, on top of the mortgage payments, insurance, property taxes, etc., and unless you bought a brand new house, you have repairs and upkeep CONSTANTLY. Most people don't have the THOUSANDS OF DOLLARS to remodel each room in the house. Yes, each bathroom or kitchen would cost thousands of dollars.

But when you're getting ready to sell, you have some equity in the house, you're counting on the fact that it will sell in a few months, so you feel more comfortable about taking out a home improvement loan. Then you'll have the money to do your renovations. The house will look great, it will sell for more, so you can afford to pay off your loans and hopefully make a little money in the process. Maybe the next house you buy can also have some of the nice upgrades you put in your old house.

Of course, if you have the thousands of dollars cash just laying around already, and you don't need it for things like retirement, kids' college funds, etc., then maybe you can afford to remodel your house. More power to you. But we're not all so lucky.

Answer 3

Its all about Selling the House & no other reason. The more of an investment that you put into the house brings up the appraisal price of the home. Lets say you put in a new water heater of course you reap the profits on the sale because the heater will last 15 or more years at most, if you leave the house with the heater that is 12 years old that has never been maintained for extended life the cost of the house goes down. Lets say you put new siding on the house if it is energy efficient that brings the house total up also. Whether people have lived as pigs prior to the sale well as long as the house itself is not in disrepair the improvements work to help you sell the house.

Answer 4

It isn't that they don't work on it while they are living there, most do. Most of the fixing up people do to sell is minor, fresh paint and such. Some people will redo an outdated kitchen that they were happy with because a newly remodeled kitchen raises the selling price enough to make it worth doing. The more aesthetically pleasing a house is the easier it will be to sell. There are certain things that will just make a house easier to sell. A real estate agent will point out that if you have your rooms painted blues, greens and such that white walls will often open a room up and make it look bigger. Also as people start looking at the house the listing agent and those showing the house will communicate about what people liked and what they didn't. So if they are all saying they liked it except for one thing and that thing is easily changed then why not do it.

Answer 5

Generally, they aren't selling the house because they don't like the color of the walls, carpet, etc. or because of the repairs it needs.

If the homeowner was not selling, repairs would still be made, but would likely occur as necessity and budget dictate (Ex: the burst pipe flooding the basement gets fixed today, the shingles that look a little bare aren't leaking so a new roof can wait another year.)

Some updates and cosmetic improvements would be made, very gradually, as time, budget and convenience of making them while living in the space allow and would be made according to the personal tastes of the homeowner. Their color/pattern/etc. choices, however attrocious they might be to anyone else, will be be very enjoyable to them.

When they want to sell, though, it's often necessary to invest in repairs, updates and cosmetic improvements, all at once and to tailor updates and cosmetic improvements to a general market (neutral tones, clean lines, the latest trend in modern appliances and woodwork) rather than to their own personal tastes. This increases the dollar amount the homeowners are likely to get out of the home and decreases the amount of time it will take to find a buyer.

Answer 6

New buyers have a slightly unrealistic idea of how valuable a house is. Since prices are always as high as they can be, but people living there are somewhat dis-illusioned with the value of the house, the house automatically has less value to those living there than it does to the most eager buyer.

People who are dis-illusioned can tolerate a certain amount of disfunction or disorder because they will be aware of faults no matter how well-repaired it is. New buyers on the other hand are more willing to be idealistic about the value of the house.

As a result of all this, there has to be an outside or external motivation for the owners to do major repairs. They don't feel much need for improvement, because to them the house is PRIMARILY FUNCTIONAL--their motto might be "if it works, don't fix it".The potential buyers are full of ideas that the house is more functional or beautiful than it really is. Any small improvement may increase the buyer's interest exponentially, whereas the same improvement might increase the residents' interest more linearly.

Mind you, this isn't based on any studies, but seems realistic to me.

Answer 7

I believe it is more basic than that, really. People have to prioritize things in life and sometimes home improvement projects take a back burner for other more pressing tasks. So, we learn to live with project "pending" while life goes on hoping to get around to it at some point. However, when the need to sell arises, one is forced to prioritize those uncompleted projects and/or upgrade to compete within the housing market. It is not a matter of preference anymore, but a need to have the property comparable to others selling within the same neighborhood.

Neighbors are not necessarily aware unless the improvements are external. They wouldn't know something was amiss inside the house unless they (1) were close enough with the owners to go inside or (2) saw the sale of the home was considerably less than the surrounding homes. One home in that condition would usually not bring down property values for the whole neighborhood though.

Answer 8

Interesting question- I have seen so many homes that looked like, well you know what, all they need is a coat of paint and a bit of DIY landscaping and it would not only make the neighborhood look better but add value to the home for when you are ready to sell.
I would much rather be proud of my home(enjoy it while living in it )and community, do what I could to improve it. Not only on the outside, but the inside as well. This is your home- a place you raise a family, in sill morals & values, it is your retreat, comfort zone and a place for family / friends to come together. No matter the length of time you are in your home safty should come first. Fix any thing that may cause a hazard or major financial burden later. (Make sure you have a professional home inspection prior to purchase- this way you will not have any surprizes waiting for you later)
If a home has to many "cosmetic" repairs make a list according to priority . If it is not a DIY job - Ask friends and neighbors for refurals. Make phone calls to get several estimates before settling on vendor ( you can ask to see samples of their work and references) Once major projects are done, plant some flowers. You will be amazed at what a few plants , paint and some immagination can do .
So, in answer to your question- I haven't a clue.
Maybe they do it for assessment reasons , maybe they choose to live that way ( I find hard to believe) or maybe they can not afford to do any kind of home repairs (I also find this hard to believe- paint not that expensive)

Answer 9

I don’t see the logic either, I’d fix it and enjoy it while I can. That’s if I had a house in the first place. Why all the lazy people able to afford houses, that’s my Q? Anyways, I think what happens is, they either don’t have enough money to fix it or don’t want to spend the money to fix it, they only fix it when they’re about to sale it because they know they’re about to make their money right back. Which makes some sense if they had to get a “loan” to fix it, it’s easier to pay off a loan when you sale the house then make payments while you’re working normally. I think the majority of people who do this though are those who “flip houses”. I wish I could have A HOUSE, sh*****t- ya know!

A thing I’ve learned from older people and living in Apartment places is, if you don’t fix it now it will cost you more later. Fix it while it’s still a small problem, and you’ll waist less time and money. Not only that you might save on other things. Though, people who normally have houses normally have some kind of money (they can always use their equity from their house, so that counts as money to me! Unlike someone Renting), & people with money (not trying to over generalize but…) usually don’t think clearly.

Answer 10

I havent seen ALL of the answers, but I did see the first 30 or so.... and the ONE thing that none of these addresses is that if you "fix up" too much... your property gets re-assessed and your TAXES go up....

If you can live with funky colors or outdated light fixtures or older kitchen cabinets... thats all fine... when its time to sell... you update those things, increase the saleability and up your re-sale value and at the same time... you are leaving the property tax increases to the next buyer.

I have a property now... a duplex and am being very careful not to "improve" too much. I just had some roof shingles replaces/repaired, some new gutters installed and will replace carpeting/flooring in one of the units as well as starting to install a 3/4 bath in the basement... but just the toilet and rough in the plumbing to start... I dont want the basement finished just yet.... I would like to install some new windows and a fence... but I also dont want my property looking like there were "improvements" done. I already pay $5900/yr in taxes alone.

If you update everything as soon as you buy the property, you end up paying for everything over and over again in terms of higher taxes as well as the cost of the improvments.

Answer 11

As a real estate investor and someone who made a lot of money in it, I have asked myself and my hubby this question often. A home is the biggest investment most Americans will ever make and it often is one of the largest sources of retirement income. I do come from a German background wherein homes are a lifelong investment and passed on to future generations. That is also why I always addressed my renter's maintenance needs, not only to protect my investment, but to keep my livelihood, their rent!

That being said, I often think Americans over buy when purchasing their homes. They don't consider the regular maintenance as part of their budget and don't realize that just getting by paying the mortgage they really cannot afford the home they purchased. They are too busy entertaining themselves to perform the upkeep that will increase the value of their investment. Further, since they don't save much, there is nothing put away for maintenance or repairs. Finally, they don't look at their homes as a reflection of who they are, how they live, where they have travelled or what is important to them.

I actually think they would get more money at the sale, if they would keep up their properties. Everyone always asks me how I get more for my properties than they comp. One word, upkeep.