Call it the seller’s dilemma.

It’s a competitive market, so any home showing poorly isn’t going to command a good price. But, because it’s competitive, there’s no guarantee you’ll recoup money spent on improvements.

Sellers should look to their real estate agents for help, since they are the local expert on what buyers value, notes Stephen Roulac, author of “375 Housing Mistakes And How To Avoid Them” (Property Press, 2004). But also become an expert yourself, he advises, because only then will you be able to make confident decisions.

Here are some pointers for sellers facing this dilemma:

Consider Standards Dictated by Competition
Buyers will often pass on homes that don’t conform to the “community standard,” notes Tim Thornton, a ZipRealty agent in Austin, Texas.

For example, if you’re in a high-end neighborhood where kitchens are equipped with granite island counters and the latest appliances, and you haven’t updated since you moved in 25 years ago, you may not book many showings, let alone entertain offers.

Your agent should take you out to tour competing properties so you get a feel of how your home compares, says Kathy Brothers, with RE/MAX Excels, Geneva, Ill.

Have your agent pull interior photos of recent sales, she adds, so that you can glean what prices are actually paid for competing properties in various conditions.

If your home comes up seriously short against the competition, and the basic, inexpensive fixes don’t put it on par, you may only attract interest from bargain hunters, says Roulac.

Still, many sellers elect not to spend significant sums remodeling a kitchen, for instance, say agents.

“It depends on what you want,” shares Brothers. Even when you do spend to bring the property on par with competition, “there is no guarantee that you’ll get top dollar, especially in short order. Some people may decide they have the time and money (to invest), but many don’t,” Brothers shares.

David McIlvaine, president of the Greater Baltimore Board of Realtors, states: “We try to give as many specifics as possible to help them make the decision.”

Factor in the Hassle Cost
Accurate information is key to spending decisions, since both owners and buyers often overestimate improvement costs, observes Loren Keim, author of “How To Sell Your Home In Any Market” (Sphinx Publishing, 2008).

Keim, who is also a real estate broker, draws the example of a home that should sell for $299,000 but needed laminate countertops replaced in addition to a new furnace, costing a total of $6,000. Buyers, however, were asking for some $50,000 off the price.

Not surprising, agrees Brothers, because buyers place a big premium on the “hassle” of making improvements themselves.

Start with Basic Improvements
Roulac divides improvements into three categories. The first, de-cluttering and editing the home of excess personal pieces, even photos, takes time, not money.
The second involves relatively low-cost improvements, like replacing worn carpet and painting with fresh neutrals.

The experts agree that these two steps are almost always necessary because neutrals and the absence of lots of personal mementoes lets buyers feel they could easily make the property their own.

More major and costly improvements fall into the third category, which sellers have to decide whether or not they are willing to make.