What is the value of preparing a home for sale? How much do you spend for the best return on your home preparation investment? The advice I give is that usually spending between 1% to 2% of the proposed value of the home is about the right amount to spend.
This depends on a couple of factors. If it is just cosmetics such as paint and carpet, hardwood floor refinishing, replacing some outdated lighting and plumbing fixtures and refreshing the landscaping, it should be closer to 1%. If it involves deferred maintenance such as an older roof, pest control work or major systems issues like heating and plumbing, it would be closer to the 2% number.

My advice, in most cases is that if you spend more than that, you are speculating that the market is going to reward your efforts. Its not advisable to gut and remodel a home for a buyer who might not appreciate what you just spent and tear out your improvements.

More in Part 2…