One of the top questions on homeowners’ minds when planning to sell their home is should you renovate before selling your home. The unfortunate answer is it depends.
To determine if it’s best to spend some money to get top dollar for your home, you need to ask yourself a few questions:
- What is the condition of your home right now?
- What repairs are necessary?
- What’s the market like?
- How much will renovations cost?
What is the condition of your home right now?
If your home is move in ready, then it is very unlikely you will need to complete any renovations. Instead, your goal should be to ensure the house is clean and neutral. You want to make it as inviting as possible to potential buyers. Even without renovations, you still have a long to do list to prepare your home to be listed on the market.
On the other hand, your home may need some repairs to pass a home inspection. That brings us to the next question to ask when determining if you should renovate before selling.
What repairs are necessary?
If your home only needs a few minor repairs or updates, don’t go crazy with remodeling projects. Most buyers want to put their own mark on their new home. However, you will want to fix anything broken or worn out. Minor projects you might consider include:
- Patching holes and finishing with a fresh coat of paint
- Fixing broken appliances and HVAC systems
- Repairing leaky faucets and other plumbing issues
- Replacing broken windows and exterior finishes
- Cleaning or replacing worn or stained carpet and hardwood floors
- Changing outdated light fixtures and window coverings
- Sprucing up the front door to improve curb appeal
However, what if your home requires major or urgent repairs? Fewer buyers will purchase a home in need of significant repairs. But that can also depend on the state of the real estate market.
What’s the market like?
In a sellers’ market, there are fewer available homes for sale than those looking to purchase. With less choice, buyers may not be as picky about the condition of the home they purchase. You don’t need to waste time and money renovating before selling your home to increase home prices or attract buyers with that new house feel.
In contrast, in a buyers’ market, more sellers list their homes with real estate agents, so buyers have more choices. To ensure your home is more attractive than others on the market, renovating your home may be required even to get an offer. But what renovations are good investments, and which are not?
It’s extremely important to understand the current market. What do other homes on the market offer and how does your home compare? What is the current market value of your home now compared to its potential value after renovations?
How much will renovations cost?
Renovating your home costs money and takes time. To determine which projects are worth it, you need to compare the average cost with the additional money you can get for your home when you sell it because of the improvements. Will you get a return on investment (ROI)? This is not always guaranteed.
Completely remodeling a home rarely nets a return on investment. Are you highly skilled in doing the work yourself? Do you have access to wholesale prices on materials?
What should you renovate before selling your home?
You should avoid expensive repairs and renovations. Investopedia used estimates from the 2019 Remodeling Impact Survey to present the return on investment of major renovations. Projects like a minor kitchen remodel or a bathroom remodel recovered less than 60% of the value.
Even popular DIY projects like finishing a basement or a mid range bathroom renovation are difficult to recoup the entire investment. And each project takes time. Do you have the time available to complete these projects? Use your time and money wisely, cleaning and freshening your home and fixing the basics.
We’re Here to Help
Of course, if you don’t have the time or money or patience to even do the basics, we can take that entire to-do list off your hands and buy your home privately!
The bottom line is if you can earn more than you spend and have the time to make it happen, then renovate before selling your home. We would be happy to share market information, and provide suggestions for repairs, upgrades, and renovations. And our experience can help accurately estimate the return on investment of recommended projects.
