Different questions, all asking the wrong person

Cash instead of update?

Q. We would like to sell our house. The bathrooms are old and dated. Instead of updating them, is it a good idea to offer the $20,000 we would spend on the update as a cash bonus to the buyer?

One parcel or two?

Q. I'm in need of your professional opinion regarding a property I own. It is an L-shaped ranch built in 1967, 1,000 square feet, and in excellent condition. It includes some acreage. My question is, will it bring a better price as is, or should it be sold in two different parcels, one the house and the other the land?

Add on to sell?

Q. I am considering selling my house within two years. Would it be practical to put a room addition (Florida-room type) on the back if I can do most of the work myself and enlarge our kitchen? Would we get our investment back out of the house?

A. Readers who send in queries like these all receive the same answer:

You're asking the wrong person.

Local real estate brokers know your neighborhood and the state of your real estate market. They can compare your home with competing properties. They'll be able to look your property over and judge conditions firsthand. They can discuss if you need a quick sale or have the leisure to explore the market.

So the advice is always the same: Call three different brokerages that are active in your neighborhood - search online, or look for lawn signs in the area. Just tell them you're considering selling and would like someone to come over.

It won't cost anything or obligate you, because real estate agents are used to making free house calls. They can judge much better than I can from this distance. You'll get the benefit of their experience - free.

As a bonus, you may meet a broker who inspires confidence, someone you'll feel comfortable with when you are ready to put the house on the market.

This next letter contains some useful advice about preparing property for the market, but I disagree with one point the writer makes:

Updating advice

Q. Frequently readers ask if it's advisable to invest money into sprucing up their homes before putting them on the market. You invariably ask them to consult local Realtors for advice.

My experience is that real estate agents have a vested interest in obtaining higher sales prices, regardless of the investment required to obtain those higher prices. If the homeowner spends $40,000 to replace a kitchen, and that results in a $20,000 increase in selling price, the agent is perfectly happy with that math!

I wouldn't shy away from spending money on repairs to critical systems (roof, windows, furnace, plumbing, electrical) - as opposed to cosmetic renovations. After a report from a licensed inspector, prospective buyers tend to come back and attempt to negotiate a reduction in price anyway, so you might as well fix what you can beforehand.

But if you look at data regarding return-on-investment for remodeling jobs, they rarely increase home values by more than 50 cents for every dollar invested. My advice is to put effort into those jobs the homeowner can do him/herself - cleaning/tidying up the house and grounds, landscaping, painting, etc.).

A. I've always made exactly the suggestions you do. A house going on the market needs the equivalent of a car tuneup. It doesn't cost anything to clean windows, tighten banisters, take most of the stuff off kitchen counters, make sure the porch light works, tidy the coat closet, trim bushes, clean out the medicine cabinet.

Local brokers will know when repairs or updates are necessary. In general, though, few renovations raise eventual sale price by the amount spent. If the homeowner is ready to invest money, I agree that fresh paint often brings the best return for the outlay.

Where you and I part company is with your statement that brokers will recommend expensive renovations to up the sale price. Have you really experienced that, or are you just naturally suspicious? Brokers welcome reasonably priced property because it's more likely to sell. A listing agent is legally obligated, as a fiduciary duty, to obtain the highest possible selling price. But if a house is overpriced or overimproved, trouble lies ahead. The broker might end up receiving nothing.

Agents have enough trouble persuading some homeowners to set reasonable asking prices. I believe any broker would prefer to market the least expensive house in the neighborhood, rather than the highest priced one.

• Edith Lank will respond personally to any question sent to www.askedith.com or edithlank@aol.com or to 240 Hemingway Drive, Rochester NY, 14620.

© 2016, Creators Syndicate