Renovate before you sell?
When thinking about selling, homeowners often feel they need to get their house ready with some remodeling to make it more appealing to buyers.
The question of “Should I renovate my house before selling?” requires more calculated thinking purely based on ROI and the marketability of your home in its current condition.
When does selling your home “as is” make sense?
1. When you land your dream job and there’s no time to waste
When time is of the essence, you cannot wait for the renovations to be done to get top dollar. So you either mark down the price accordingly or just go for it. A trusted realtor will help you price right.
2. When you can’t foot the bill for those renovations
If you can’t afford it, you can’t afford it. There are options and programs, but sometimes you just want to get out of the house (for whatever reason) and just give an allowance for renovations to potential buyers.
ALSO, with so many buyers competing for available homes right now, renovations may not be as vital as they would be in a more normal market. Here are two things to keep in mind if you’re thinking of selling this season.
There aren’t enough homes for sale right now.
A normal market has a 6-month supply of houses for sale, but today’s housing inventory sits far below that benchmark. According to the National Association of Realtors (NAR), there’s only a 1.9-month supply of homes available today. As a result, buyer competition is high and homes are only on the market for a short amount of time, during which time many receive multiple offers from hopeful buyers.
In a competitive market that’s moving so quickly, it makes sense to sell your house when buyers are scooping homes up as fast as they’re being listed. Spending costly time and money on renovations before you sell might just mean you’ll miss your key window of opportunity. While certain repairs on your house may be important, your best move right now is to work with a real estate advisor to determine which improvements are truly necessary, and which ones are not likely to be deal-breakers for buyers.
In this market, it may be wise to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. As a seller, your dollars and time might be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior. Instead of over-investing in your home with upgrades that the buyers may change anyway, work with a real estate professional to determine the key projects that will maximize your listing, without overdoing it.
Focus on getting a good return on your investment.
When planning any bigger projects to tackle, you and your realtor will want to discuss the potential return on your investment and if those projects are worth the cost. Some homes do need a kitchen or bathroom renovation, roof repairs, or other major work, but definitely not all of them, and like stated above, it might not be worth it if the new buyers might just remodel to their liking.
Before you renovate, definitely talk to me or another local realtor to see if it’s the best course of action. You may find out that putting your house on the market as-is will help you sell quickly, and it may result in the best return on your investment. Every home is different, but a conversation with your agent is super important to make sure you make the right moves when selling this season.
No matter your choice, remember that living through a renovation is a stressful process, and it’s important to determine whether the financial gains will be worth the strain of a renovation. While it’s not always an easy decision, I hope this helps you make the right one.
We’re in a strong sellers’ market, and that means you have the leverage to sell your house on your terms. Contact me today to determine if renovating is really the best way to spend your time and money before you sell.