A real life situation: You bought a house and paid top dollar. You were attracted to it and liked the finishes. Now you want to sell and get top dollar, but the kitchen and bathrooms aren't updated and they aren't original. FYI, original kitchens and bathrooms can appeal to people who relish vintage and preservation, particularly if they're in pristine condition, but in this scenario, the materials used in the kitchen and bathrooms were very stylized and common in the late 1990s and early 2000s and now read as "dated."
My recommendation is not to remodel the entire house but, in my experience, replacing the kitchen floor and backsplash, painting the kitchen cabinets, and replacing a few appliances and cabinet knobs that showed real wear and tear would be beneficial and checks the following boxes:
With my suggested improvements, I can advertise the kitchen as "updated," because partially updated is updated.
These strategic changes will broaden the property's audience.
The house will show differently than it did when it was last sold. I've seen buyers compare a house to how it looked when it was last on the market to see what cosmetic updates have been made, so we are giving them a different product.
While a homeowner does not have to update their home before putting it on the market, if your goal is the highest possible price, you may want to consider a few changes. Today's buyers have a very different mentality than buyers did when interest rates were 3% or less. They are much pickier! While they want to get into a house and plant roots, they also want to be attracted to a home, and they are not settling.
Consider this: Let's say you paid $1.3 million for your home when interest rates were 3%, you put 20% down, and you had a loan amount of $1,040,000; your monthly mortgage payment is $4,385. If you buy a home for the same amount with the same down payment today; interest rates are currently 6.875%, so your monthly payment would be $6,832, a 55.8% increase before property taxes and insurance. Because of current interest rates, the cost of living, and consumer confidence, some sellers are taking a loss if they purchased during the peak market in the pandemic, especially if repairs or updates are needed. The house/scenario mentioned above will sell regardless of what the homeowner decides to do, but an updated home will attract more buyers and sell for more than leaving the kitchen as-is.
This is just one example of a situation I see. You cannot paint the market with a broad brush; there are many micro-markets, especially in large cities like Oakland and Berkeley. When I work with a seller, my fiduciary duty is to get the highest and best offer for the homeowner. When you hire me as your listing agent, I represent only you, not the buyer.
Did you know I have never represented the buyer on one of my listings, ever?
Making strategic changes can support your home's success! Sometimes I make recommendations that may not be to your taste, but they are always grounded in experience. When working with me, I will always lead with experience, heart, creativity, data, and in-depth local knowledge, and I will always share the truth. Additionally, Red Oak has a short-term loan available for qualified homeowners to access up to $50,000 to help refresh and prepare your home, using service providers of your choice!
So what is happening for buyers? The high-end market is quite robust; I am seeing properties in the $2M+ range in Piedmont, Berkeley, and some areas of Oakland sell very quickly and for over asking price, especially when thoughtfully and meticulously prepared. I have seen other homes struggle, creating buyer opportunities. I anticipate that buyers who don't let rising interest rates deter them from a home that truly suits their needs will find real opportunities in the next few months.
If you want the real deal on the market, reach out, and I am happy to be your real estate resource. Year to date, I have listed 11 properties, and all sold on average 29% over the asking price in 16 days. Yes, listing a home is a bit more complex in today's market, but I am proud of the work I do and the results I help my clients achieve. I am now taking on projects for 2027; it is never too early to start the process.
3044 Dakota Street, Oakland is just listed for $699,000 and open this Sunday 2-4pm!
P.S. Are you following me on Instagram? I share homes I tour, fun reels, and more; my handle is @DeidreJ
