Before placing your home on the market, you may be wondering if you should renovate. It’s a common question with no easy answer. It is no secret that home renovations can be timely and expensive. On the one hand, you want to get the most money possible for your home. On the other hand, you do not want to over-invest and lose money in the home. There are pros and cons to renovating before selling that you should consider. Ultimately, you will need to make a decision based on your unique circumstances.
How to make the decision
When considering whether or not to renovate before selling your home, it is important to do your research and speak with a real estate agent to get a realistic idea of what upgrades will add value to your home and which ones will not.
Get a home appraisal
Before jumping into decisions, you need a starting point. A home appraisal will give you an unbiased, professional opinion of your home’s value as-is. This number is your baseline. You can then use this number to help you make an informed decision on whether or not to renovate. If you are happy with the assessment and feel you can move with the approximate list price, you may choose to forego renovations. If you want to increase the value of your home, renovations are an excellent option.
Look at the market and comparable homes
Photo courtesy of ShutterstockWhen weighing factors, you should consider the current market conditions and similar homes for sale in your area. As you look at other homes for sale, make sure they are similar in terms of square footage, layout, and features. If the homes for sale near you are all renovated with high-end features, you may need to remodel your home to stay competitive in the market. Even in a seller’s market, it may take time to sell your home if it is not updated, or you may have very unfavorable offers. It is important to understand the current market and what you can expect if you do or do not renovate your home.
Ask a real estate agent
Photo courtesy of ShutterstockA real estate agent can help you learn about the market, recent trends, and what buyers are looking for in a home. They can also help you understand how much value specific improvements would add to your home. Speaking with a real estate agent should be one of your first steps when considering whether or not to renovate before selling your home. Experienced agents often have a wealth of knowledge regarding home renovations and can provide helpful tips on what projects are worth undertaking. Remember, the goal is to add value to your home and take on renovations with a positive return on investment.
What to expect if you decide to renovate
After research and professional guidance, you have chosen to renovate your home before selling. Here’s what you can expect:
Longer timeline
A potential downside to renovating your home before selling is the timeline. Home improvements can take weeks or months to complete, depending on the size and scope of the project. This can be a roadblock for your selling plans, especially if you need to do so quickly. Renovations can add significant value to your home, but you need to work with a contractor to review your scope, set a timeline, and plan accordingly.
More upfront costs
Home renovations also require significant upfront costs. You will need to factor in the expense of materials, labor, and any permits that may be required. In some cases, you may be able to finance the cost of renovations with a home equity loan or line of credit, which should be considered carefully. Although renovations require an upfront cost, if they are strategic and add value to your home, you will recoup the costs in the sale.
Better list price
If you choose to renovate your home before selling, you can expect a higher list price in many cases. This is because renovations often increase the value of a home. A more attractive home also means more potential buyers interested in your property, increasing the sale price.
Effective renovations
Photo courtesy of ShutterstockAlthough every renovation is unique, there are some common measures home sellers can take to ensure their renovations are effective. A well-executed renovation can bring your home up to date with the latest trends and fads, adding value and appeal to your property. However, not all home renovations are worth undertaking. Before choosing to renovate, be sure to do your research and consult with a professional.
Renovations that increase home value
There are renovations that are more likely to increase the value of your home, including renovations that:
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Add new features or expand the square footage of your home
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Improve the energy efficiency of your home
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Improve the functionality of your home
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Add to your home’s curb appeal
Examples include:
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New paint
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Updated kitchen
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Modern appliances, lighting, and fixtures
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Removing walls for an open living space
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Fresh landscaping
What not to fix when selling a house
When selling your home, it is important to remember not to fix anything that isn’t broken. This means avoiding renovations that don’t add value and may cost you more in the long run. You can skip renovations and upgrade on:
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Master bed and bath addition
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Outdoor deck
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Minor imperfections
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Minor electrical issues
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Bathroom overhaul
When selling your home, stay focused on showcasing the potential for buyers, not making it perfect. In many cases, complete renovations are unnecessary, and key spaces like kitchens and bathrooms can transform with minor upgrades like:
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New countertops
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Painted cabinets
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Modern handles
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Tile backsplash
As you begin renovating, always revert to your goals to stay on track and make effective decisions. When you are ready to sell your home, Ivan Ramirez and Monica Sarmiento are expert real estate brokers in South Florida with experience in popular areas like Miami Beach and Sunny Isles Beach. Ivan and Monica are dedicated agents that help sellers prepare their homes for a smooth and successful sale. Start the process today and learn how to improve your home for sale.
*Header photo courtesy of Shutterstock
