Should You Renovate Your House Before Listing?
One of the most frequently asked questions about selling a property is whether or not you should remodel it before you list. Sure, you'd like to recoup your investment. However, the correct answer is tricky because certain upgrades will never be enough to increase the value of your home to break even.
Consult a real estate agent before putting your property on the market to consider the advantages and disadvantages of your home and situation.
Consider the following factors:
Before listing their houses for sale, many sellers spend far too much money on improvements. They fix defects that a buyer might not notice or have repaired. Consider the following before deciding to make upgrades.
- What Is the current real estate market condition?
Homes can sell in days in a hot real estate market, attracting many offers and even bidding wars. You can usually get away with fewer repairs before listing in a seller's market.
However, a home in need of repairs will still sell for less in any market. Buyers may not even care to check a property that needs work in a stagnant market.
- What's the state of the other houses on the market?
A comparative market analysis (CMA) provides you with a snapshot of recently sold properties in your neighborhood.
Your real estate agent can help to supply you with a CMA, which will help determine whether your house offers more (or less) value than homes in similar locations.
- What are your chances of getting a return on your investment?
Some home upgrades and repairs are more likely to pay off than others. A bathroom renovation, for instance, might add more than $15,000 to the worth of your property, while a welcoming front porch can add over $5,000 to its resale value.
Things to Keep in Mind Before You Begin Renovating Your House
Savvy owners will compare the cost of suggested modifications to the home's market value after repairs or upgrades are done. If an update does not produce a decent return on investment, such an upgrade may not be worthwhile (ROI).
Keep in mind that kitchen and bathroom renovations provide the best return on investment. Other high-return upgrades include:
- Siding replacement with fiber-cement or vinyl
- Window replacement
- Adding a deck
- Constructing a swimming pool
Renovating Your House
Make a list of anything that is damaged, malfunctioning, or worn out. If buyers notice issues or faulty systems while touring your house, they may question what else has been overlooked.
Replace any broken window glass and, if necessary, fix the roofing. Moreover, change any out-of-date lighting or ceiling fans.
Unoccupied homes don't display as well as furnished ones, but worn furniture can ruin your home's appearance. If your furniture is in poor condition, consider replacing it.
Final Thoughts
Learn as much as you can about the property market and other properties for sale in your neighborhood before deciding to sell your home as-is. Then think about which house repairs will provide you the most return on your money.