You may wonder if it is worth renovating your home before putting it on the market. Renovating has pros and cons, and the right choice for you depends on many factors. If you are considering selling soon, it may make sense to start updating your home before putting it on the market. This way, you will reduce the risk of losing potential buyers and give yourself the best chance of adding value. Take a look at the pros and cons of renovating your home before selling it:
PROS OF RENOVATING
Renovating is not just about getting more money for your home, although that is a significant factor. Upgrades and renovations can make the selling experience more successful and offer many benefits.
HIGHER LIST PRICE
Renovations can potentially add a lot of value to your home and can be a good strategy, especially if you are looking to maximize your chances of hitting the market at a high price. One of the benefits of renovating your home before putting it on the market is that it will increase the list price. Many potential buyers are interested in updated homes, and well-maintained homes will look and feel nicer than those in need of repairs. It is important to understand that not all renovations add value and to focus on upgrades with a measurable return on your investment. Calculated renovations can add value and allow you to list your home for more money than it would without the changes.
BETTER INITIAL OFFERS
Renovations can be a great way to improve the look and feel of your home and increase its value. If you are considering selling soon, investing in some updates can give you an advantage over other homes on the market. Improvements can make your home look more attractive to buyers and can result in better initial offers. A sleek home with buyers’ desired features and designs can draw more attention. When buyers know a home is desirable, they are more likely to submit a strong initial offer to secure the home over competitors. This helps you avoid lowball offers or endure lengthy, complex negotiations common with unrenovated homes.
Renovating your home before selling it can provide many benefits, but choosing the right upgrades is essential. Some changes, like updating the kitchen or bathroom, can add a lot of value to the home. Higher list prices are common when renovations are done well, and buyers are more likely to offer you a good initial offer if they know the home has been updated. Combined, these factors can lead to a faster sale. A renovated home often sells more quickly than unrenovated homes. Renovations may delay the list date, but in the end, you can sell your home faster and for more money.
CONS OF RENOVATING
Not every homeowner needs a complete renovation. There are many spaces where you can make meaningful improvements without exhausting your budget or incurring a lot of disruption. Before taking any steps to renovate your home, think through some potential delays and disadvantages.
NOT ALL RENOVATIONS HAVE A RETURN ON INVESTMENT
Giving your home a complete makeover can be tempting because many improvements and renovations can add value. However, not all upgrades can provide a return on your investment. This means that you have to determine specific renovations that make it worthwhile to invest the money before selling. You can work with a contractor and designer to talk through your home and discuss ways to add value without wasting your budget.
EXTENDS YOUR SELLING TIMELINE
Although many homeowners like to think they will be able to renovate their homes quickly and easily, it often takes months and months of planning and preparation to renovate efficiently, especially with larger projects or multiple areas of renovation. If you need to sell your home immediately, quick improvements can be made, like new landscaping or fresh paint, but larger-scale renovations like a kitchen remodel may not be the best option for you. Working with a contractor can help you determine the scope and timeline of your renovations and stay on track to sell your home.
REQUIRES AN UPFRONT INVESTMENT
One of the biggest potential obstacles involved in renovating a home is the cost of the renovation itself. A complete kitchen or bathroom renovation can cost thousands of dollars. The cost of these projects varies depending on your location, the project’s scope, and the materials used. It is important to understand that even though renovations require an upfront financial investment, sellers see a return when they sell the home for a higher price.
RENOVATIONS THAT INCREASE HOME VALUE
Ready to renovate your home before you sell it? Take a look at these value-adding projects:
- Minor bathroom remodel
- Minor kitchen remodel
- Exterior facelifts like paint, siding, mailbox, and garage door
- Finished basement
- Outdoor living space with a patio or deck
- Energy-efficient appliances and windows
- Fresh neutral paint
WHAT NOT TO FIX WHEN SELLING A HOUSE
Not every renovation is worthwhile. When renovating your home, you don’t have to worry about renovations like:
- Minor electrical issues
- Removable items or features
- Driveway or sidewalk cracks
- Significant room restructuring that requires taking down walls
ASK A PROFESSIONAL
A real estate agent can help you determine if a renovation is the best option for your home. They can also help you understand the potential delays, disadvantages, and benefits associated with the project. Realtors have seen thousands of homes for sale in local neighborhoods and can help you determine what renovations will make your home competitive. Before making decisions and diving into renovations, consult with a local realtor to learn more about your local market and if renovations are necessary.
Whether you want to sell your home or find renovated homes for sale, Sonya Peterson can help. Contact Sonya to get started today.