Home Upgrades vs. Maintenance: What Adds Value When Selling

By Rebecca Durfey

Rebecca Durfey brings over 20 years of experience in real estate transactions within Maricopa County. Despite managing multiple clients simultaneously, her primary focus is to provide a personalized experience that makes you feel like her sole priority. Rebecca and her team are dedicated to efficiently achieving the desired outcomes for each client they serve.

You replaced your roof and your HVAC (heat and air conditioning unit), so will your home worth a lot more now? That most definitely helps with the peace of mind for a buyer, and a could choose your home over another that has not been well-maintained, but home maintenance does not bring a dollar-for-dollar match when it comes to the valuation of an appraisal. It is not uncommon for a seller to want to add the cost of replacing a roof or the HVAC system back into the asking price because they are thinking it’s an “upgrade”. I would market the home as being well-maintained and that a buyer can feel confident they do not have the cost of “big ticket” repairs in the near future with the replacements, which can bring a buyer in a timely manner, but in today’s market especially, maintenance is not seen as an upgrade to the home.

In the current Phoenix-metro buyer’s market, if an inspection shows that there are potential issues that could arise in the near future with those bigger-ticket items, the buyers have no qualms with asking that they be done prior to closing. We have a higher escrow cancellation rate than in decades, and one of the main reasons is the buyers are asking for more repairs than sellers anticipated. If seller disagrees, the buyers walk away and find another home.

Maintenance is not only a way to ensure value of the home, but it’s one of the responsibilities that comes with homeownership.

What do most homeowners get wrong? Replacing a roof or updating your HVAC system feels like an upgrade because they can be so costly, but those are considered regular maintenance and updates. One way you can distinguish between maintenance and an upgrade is that when you are servicing those things that need to be functional when living in the home and, of course, when selling the home, that is maintenance. I would include a HVAC, roof, pool, appliances, water heater, disposal, landscaping, garage doors, plumbing leaks and electrical issues as areas that need regular maintenance and servicing.

Maintenance is so important. It protects your home from losing value, even if it’s not directly adding dollars to your value.

What actually counts as an upgrade? Upgrades are improvements that were chosen in order to add value, but were not necessary. For example, you might decide to change out your kitchen cabinets for a more updated look or replace old style flooring. These are not required for the home to function, but they can make the home more desirable to buyers.

If you make the desirable design choices that buyers love, those upgrades can have a strong impact. Certain styles and finishes can make a home feel more current and appealing.

Maintenance preserves your value, and upgrades enhance your value. Both are important, but they serve different purposes. If you focus only on maintenance, even without the updating or changes, you are providing peace of mind for a buyer. If you choose the upgrades that the market responds to, you can go beyond the peace of mind and make your home stand out even more.

Understanding that difference helps you avoid spending money in the wrong places and ensures your home will be presented in the best light when it’s time to sell.

If you’re thinking about selling and want to talk through what maintenance needs to be done for your home or what upgrade might add the most value, please feel free to call or text me at 623-297-4536 or email me at rebeccadurfey@kw.com. I can help you determine the best strategy to prepare your home for a successful sale.