How Much Should You Budget For Repairs Before Selling?

When preparing to sell your home, it’s natural to want to ensure it’s in the best condition possible to attract potential buyers and secure a good price. However, deciding how much to spend on repairs can be tricky. You don’t want to over-invest in repairs that won’t yield a return, but you also don’t want to leave issues unaddressed that could turn buyers away or lower your sale price.

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This guide will help you determine which repairs are worth the investment, how to balance the cost of improvements with your expected sale price, and how to make your home as appealing as possible without breaking the bank.

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Understand the Potential Return on Investment (ROI)

Before diving into repairs, it’s essential to understand that not all home improvements are created equal. Some repairs and upgrades can increase your home’s value significantly, while others may not justify the expense. The key is to focus on repairs and improvements that provide a solid return on investment (ROI).

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High ROI Repairs

• Kitchen updates: Minor remodels, such as updating cabinet hardware, replacing old appliances, or refinishing countertops, often provide a solid return.
• Bathroom updates: Replacing outdated fixtures, repairing water damage, or updating the vanity can significantly boost your home’s value.
• Curb appeal improvements: Enhancing the exterior with landscaping, fresh paint, or a new front door increases the property’s first impression.
• Roof and foundation repairs: Addressing major issues like a leaky roof or foundation problems prevents potential buyers from being scared off.

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Repairs to Avoid

• Overly personal upgrades: Customised features like unique wallpaper or specialised colours may not appeal to a wide range of buyers.
• Large-scale renovations: Adding a room or fully renovating a kitchen may not yield a high enough return to justify the cost.
• Lavish landscaping: Keep improvements simple, such as trimming shrubs and adding colourful plants, without overspending on elaborate designs.

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Evaluate What Needs Repair

Assess your property’s condition to decide which repairs are necessary and which can be left alone. A balanced approach ensures your home is attractive and functional without overspending.

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Worth Doing

• Cosmetic repairs: Patching holes, touching up paint, and replacing worn carpets improve the home’s appearance without significant cost.
• Plumbing fixes: Leaky faucets, clogged drains, or low water pressure should be addressed.
• Electrical repairs: Ensure outlets and switches work properly to prevent concerns about the home’s electrical integrity.
• HVAC servicing: Make sure heating and cooling systems are functional, especially in older homes.

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Skippable Repairs

• Over-personalised features: Avoid spending on upgrades that may not resonate with buyers.
• Major structural changes: Unless critical, avoid costly renovations that don’t align with local buyer expectations.

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Factor in Your Local Market Conditions

Your local real estate market impacts how much you should spend on repairs. For example:

• Seller’s market: With high demand, buyers may overlook minor issues, reducing the need for extensive repairs.
• Buyer’s market: When supply exceeds demand, repairs and improvements can help your property stand out.

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Key Considerations

• Neighbourhood pricing trends: Look at nearby homes to gauge repair expectations.
• Home age: Older homes may require more maintenance, like addressing outdated systems or repairs.
• Competition: Evaluate how your home compares to similar listings in the area.

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Set a Repair Budget

Determine how much to spend based on your expected sale price. A good rule of thumb is to allocate 1-2% of your home’s value for repairs. For example:

• Home value: $500,000
• Repair budget: $5,000 to $10,000

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Get quotes from contractors for larger projects and consider DIY options for minor repairs to save money.

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Decide What to DIY and What to Contract

DIY Repairs

• Painting interior walls.
• Fixing small drywall holes.
• Replacing light fixtures or cabinet hardware.

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Hire Professionals For

• Roof repairs or replacement.
• Electrical or plumbing work.
• Structural issues or major renovations.

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Consider the Timing of Repairs

Repairs can be time-consuming. Focus on quick, high-impact fixes if you’re on a tight timeline. Cosmetic updates like painting or fixture replacements can often be completed in days, while larger projects like re-roofing may take weeks.

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What Happens If You Don’t Make Repairs?

Leaving repairs undone can impact your home’s sale price and buyer interest. Minor issues might lead buyers to assume the home has been poorly maintained, while major issues like a leaking roof could scare buyers away entirely. Be transparent about any unresolved issues and adjust your asking price accordingly.

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Conclusion

Deciding how much to spend on repairs before selling your home can be challenging, but by focusing on areas with high ROI and aligning your budget with market conditions, you can maximise your property’s appeal without overspending. Start with essential repairs, improve aesthetics, and prioritise projects that will leave a strong impression on buyers. With the right balance, your home will be market-ready, and you’ll be positioned to achieve a successful sale at the best possible price.