You are finally ready. You’ve found your dream home in your dream neighborhood. The only thing left in the way of you and your new home is selling your current house. As you and your real estate agent begin thumbing through the market trends and deciding how to price your property, there is one piece of advice we want to give you that might surprise you. Renovate your home before you sell it! Although you are probably not excited about investing money in a home you will be leaving, there are plenty of reasons to renovate before you sell.
The physical aspects of your home are a major selling point. The first impression is what hooks buyers. Small renovations have a large impact on a potential buyer’s initial reaction to your property. Here are some guidelines to decide if renovating your home will provide you with a high return on investment (ROI).
What is the current condition of your home?
If a house is in dire need of renovations (bad electrical work, gaping holes in the exterior, etc.), you need to prepare yourself for the condition of the home to reflect the buyers’ offers. The majority of people who are interested in properties in disrepair are looking to flip the home to make a profit of their own. Their offers will take into account the pricing of all of the repairs plus making money on their resale. You will need to do some calculations to see if it is more cost-effective to do these repairs yourself to up the sale value or to take a lower price and not invest in the renovations.
What is the current real estate market like?
If the market in your area is considered a buyer’s market, that means there are more properties available than interested buyers. You’ll need to put your best foot forward in order to set your property apart from the others. This is an instance where investing in updates and renovations can have a high return.
If your market is in a seller’s market, your property is already in high demand. This is a situation where buyers will overlook minor repairs in order to purchase a home. Updates and renovations, in this case, won’t result in as high of an ROI.
Get the Most Bang For Your Buck
Upgrades to your home can have a fairly high return on investment. However, knowing how and what to improve on your current home is key to making sure you are spending money wisely. In general, good quality materials, surfaces that are easy to maintain, and timeless designs add the highest value to your home! Below, we’ve outlined some of the best ways to see a high ROI on your property renovations.
Major home defects
Issues such as HVAC problems, foundation complications, or any other major red flags that show up on home inspections should be taken care of if you want a competitive market price. Skipping these important repairs can significantly lower the value of your property, not to mention start the future owners out on a complicated note.
Basic cosmetic updates
A new coat of paint, updated cabinet hardware, and refinished wood floors add a lot to the aesthetic appeal of a property. Most of these updates come with a minimal price tag but are made back at 100% or more on the return!
The kitchen is the heart of the home. Buyers look for an open, functional, easy-to-maintain kitchen to serve their needs. This can often be a big selling point for buyers, so if you decide to upgrade the kitchen you’ll want to invest in quality countertops and functional appliances.
Bathrooms are another place where functionality is of the utmost importance to buyers. Although high-end, luxury finishes definitely attract buyers, you can do simple upgrades to improve visual appeal. Upgraded faucets, light fixtures, and a new coat of paint can be inexpensive ways to revamp a bathroom space.
In today’s home buying market, most buyers prefer hard-surfaced floors. Wood flooring is always a selling point, but if you don’t already have them it can be pricey to install. Instead, tile or laminate are more cost-friendly options. Carpet should definitely be removed from surfaces near water sources (kitchens, bathrooms, etc.).
Neutral is the best way to present a home. Although your children enjoyed having fun designs painted in their bedrooms, you will want to cover those with a fresh coat of paint (tans, off-whites, and greys are the most popular). Repair any cracks or nail holes in the walls and ceilings and paint over them to provide your potential buyers with smooth surfaces.
Work with your REALTOR® Associate as you prepare to show your home. As an expert on properties, market trends, and home values, your agent can direct you in the most cost-effective ways to update your home while also seeing the highest ROI possible.
At Sweetly, we work with our sellers to help you receive the best offer for your home so you can move on to your new beginning. We offer property owners two options to sell: The traditional method where your home is listed for sale, or the Sweetly way. When you opt for our unique model of real estate, the first step is to have your home appraised. We offer home evaluations in-house. After the evaluation, we would be happy to provide you with suggestions on ways we believe you can increase the value of your home. For more information about our process, visit our website and fill out a general inquiry form! You can also get in contact with one of our agents via email at email@example.com or by phone at 780.477.9338.