Let's say you want to sell your home. It was once someone's pride and joy, and still has some of its original charming features. It's in a convenient location, close to amenities and public transportation, and the floorplan and lot size are desirable. 

But your house is seriously outdated or needs major repairs. 

Of course, you want to maximize its value. You don't want to walk away from a potentially money-making opportunity. Maybe you'd be happy to just recoup your initial investment. 

You have three choices: Sell as is. Do minor repairs. Or tackle a major renovation.  

Just list it

The simplest solution is to contact a local Realtor to get your house on the real estate market without spending time or money on repairs. I've blogged about how to hire a Real Estate Agent  so you'll get the best service possible. You want someone who has experience in the local market, but is willing and able to cast a wide net. 

Often these "distressed properties" are grabbed up by flippers or even corporations who have the money, contacts and know-how to turn a property around. If you want a quick and easy sale, you might decide to step aside and trust your listing agent to handle the details. Of course, you'll want to stay informed of decisions and progress as the selling process moves along. 

I don't recommend selling to someone who will offer you fast cash for your property "as is." If you read reviews of these transactions, you'll see that there are lots of glitches. You will never get a good deal. Yes, you'll get out from under ownership, but you'll pay for that convenience. Only you know your bottom line. If you need cash fast and have no tolerance for details, sometimes it's better to cut your losses and move on with your life. 

Make some changes

Your second choice is to tackle the kinds of projects that matter to buyers but that don't require much time or money. This is when DIY projects pay off. Can you do some minor repairs like patching holes and painting walls? Are you willing to do a deep cleaning or hire a cleaning service? Do you know contractors who can help with electrical and plumbing problems? 

Work with your listing agent to learn what's expected in your market, in your locale at your price point. I always suggest homestaging a property, even ones that need additional improvements. 

Even minimal staging helps a property sell faster 
for a better price. Photo: TwinValleyWoodcrafts 

Maybe your house can be marketed as an investment property -- a rental house -- instead of someone's dream home. In that case, things like fancy major appliances, a garbage disposal, trendy lighting fixtures, and extensive landscaping aren't crucial. There is something called "The 1% Rule" that investors use to make decisions. A landlord should be able to charge 1% of the purchase price for a month's rent. If you list your home for $200,000, an investor wants to be able to rent it for $2,000 a month. 

If an investor is looking for a property to use as a short-term rental, he will use a different formula and will need to make the major upgrades this market expects.           

By painting these pink walls a neutral color, 
cleaning or replacing the dingy carpet, hanging
the doors and adding knobs, you could 
solve some big problems in buyers' eyes.

Renovate the house

But perhaps you have the time, money and desire to improve your home's likability. According to Today's Homeowner, 57% of homeowners experience an increase in their home's appraisal value after completing renovations. Appraisals of course are what buyers have to show to their lender to be approved for a mortgage.

A simple place to start is with the exterior. Experienced rehabbers know that sprucing up the exterior lets neighbors and anyone driving or walking by that the home is getting "turned around." It's a good way to build curiosity.

No matter what the season, there's no reason for
a property to look neglected. Keep it pleasingly
landscaped, clean and even occupied.  

Start by eliminating or pruning overgrown shrubbery. If you have mulched areas, refresh the mulch. Pressure wash the house and paved areas if needed. There are several products on the market like Spray and Walk Away or Wet and Forget that let you get rid of stains and mildew without a pressure washer. According to Bob Vila, a thoughtful landscape design can enhance your property's value by as much as 20%.

You can work backward from your listing price to determine how much money you want to put into renovations. You know what you paid for the property (assuming you did not inherit your home), and how home prices have changed since then. You can't get too greedy. Remember that unless you've been living in grandma's basement or couch surfing with friends, you've had a place to live since owning the home. 

When a home has quality features like
hardwood floors and interesting 
architectural elements, staging
the rooms needn't be complicated. 

Once you have a budget, you can decide if you want to spring for new LVP flooring, replacement windows, a new roof, new kitchen and bath cabinets, new major appliances, improved insulation, a professional paint job, updated landscaping for better curb appeal, and equipment rentals to make the job go smoothly. You'll need to get estimates and then work backward from your predicted selling price to make decisions about how much to spend. 

How much you spend can also depend on what problems you can't fix no matter how much cash you throw at them. A bad view, noisy neighbors, small rooms, high taxes or HOA costs -- these are things beyond your control. Let your Realtor help you determine how to offset these problems by emphasizing your home's selling points. 

This is how the house pictured at the 
top of this post looks after it was 
thoroughly rehabbed. Read the story at
Apartment Therapy here. 

Try not to go into debt for major renovations. If the market is slow, you might end up paying too much for that loan. Keep a business frame of mind so you don't make emotional decisions about what you would do if you lived there. You are fixing it to appeal to the widest market.                                   

Get the look, get the book

Be sure to download my eBook, DIY Home Staging Tips to Sell Your Home Fast and For Top Dollar. You can download it now and start planning the kind of staging that sells homes. It's loaded with easy ideas and instructions to maximize your home's value.