This Week's Q & A

Q: I’m trying to sell my house but it has not attracted nearly as much interest as I had anticipated. Only a few buyers have seen it and none of those prospects have made an offer. Given the slow pace, do you think investing some money in renovations would make it more saleable?

A: That depends on what renovations you are planning and even more on the reasons the house isn't selling in what, by all accounts, remains a very strong market. But before you sink a lot of money and time into a major rehab effort, I think you should carefully analyze the problem, starting with why so few buyers, apparently, have visited your property. Interest rates remain low and the market, by all current accounts, is still strong, which raises the obvious question: How is the house being marketed? Have you listed it with a broker? If not, perhaps you should consider doing so.

Many owners assume that in a hot market, homes will sell themselves, but that is rarely the case. Owners can certainly sell homes on their own, but usually neither as quickly nor as effectively as a skilled agent. If the house is already in the hands of an agent, are you satisfied with the marketing initiatives? How is the agent advertising your home? Is it listed on the Multiple Listing Service? Is the agent using the Internet as a marketing tool? Have you allowed enough time for a response? You may have some cause for concern if the house has been listed for three months but considerably less if it was just listed a week ago.

If you are satisfied that the marketing efforts seem reasonable, consider the pricing. Even in a hot market, a house priced unrealistically may encounter buyer resistance and a house priced outlandishly may be ignored. So take a look at your house in relation to the recent sale prices of comparable properties in your neighborhood – comparable not just in location and size, but in condition.

After you've looked critically at the pricing and the marketing, it may, well, be a good idea to focus on the house itself. But industry experts generally agree that if the goal is to speed the sale, smaller scale improvements, in most cases, make more sense than major renovations. The problem with a major rehab (apart from the cost and limited prospect of recovering the investment) is that you can't anticipate the tastes of the people who are likely to be interested in your property; the more customized the upgrading you do, the greater the risk that you will reduce your pool of interested buyers.

So don't try to remake your property, just make sure everything works properly. A leaky faucet or a torn screen can make a big difference in how your house is perceived, even if it is otherwise in mint condition. If the house needs extensive work, you will probably be better off lowering the price and letting the new owner tackle the renovations.