Should You Renovate Before Selling Your Home?
As a seller, you want to get the best price possible for your home. Should you renovate before selling your home? The answer, as it often is in life, is frustratingly inconclusive: It depends.
Before you decide to take the plunge, you’ll need to consider the market you’re in, a few truths about renovations, and the state of your home. Then, you’ll have the information necessary to make the right decision for your unique situation.
Evaluating the Housing Market in Your Area
Ask yourself this: Why are you considering renovating before placing your home on the market? For most sellers, the answers will involve attracting buyers and getting a good price. As Baird & Warner points out, no extra effort is necessary to achieve that when you’re in a hot housing market. While certain markets are hotter than others, it’s worth checking the temperature of your local market carefully to decide if it’s worth the investment of time and resources. When homes are selling in a matter of days, experts generally say renovation is unnecessary.
Acknowledging the Basic Truths About Home Renovations
The Pinnacle List points out a few basic truths about home renovations that any seller who is considering them should know before they make a decision:
- You may not make your investment back. While a renovation should increase the value of your home, the improvement doesn’t necessarily equal or exceed the cost of the renovation. In fact, it rarely does. As a result, you’re unlikely to recover the total price tag of your renovation when you sell your home.
- Buyers notice when you cut corners. A renovation that uses cheap materials or shoddy workmanship can harm your prospects of making a sale. Wary buyers who detect defects are likely to worry that they are a sign that more poor maintenance and bad craftsmanship is lurking elsewhere.
Weighing the State of Your Home
The state of your home is another piece of the equation when calculating whether to renovate before selling. Is there lots of room for improvement? Or, is it in fairly good condition? What type of renovations would you want to complete? What would be involved?
As you’re planning your renovations, Houwzer suggests remembering that there are two main types of buyers. The first group wants a move-in ready home, so they expect the entire home to be equal in quality. The second group is willing to tackle a fixer-upper, but they expect to pay less for that privilege. What does that mean for a homeowner who intends to renovate? A smart strategy is to think like someone who is flipping a house. If you are going to renovate, do it equally throughout the home. If that idea doesn’t appeal, it may be best to forgo renovations or limit them to only the necessary repairs.
Asking Questions to Decide Whether to Renovate
Are you still undecided about whether to renovate before selling? HomeLight suggests asking yourself a few questions:
- When do you hope to list your home? Renovations take time. If you plan to put your home on the market soon, you may have to rethink either your renovation plans or your schedule.
- How much will it cost? Knowing the price tag for a project can help you decide whether it’s worth it.
- Is the renovation appropriate for the house and the neighborhood? It’s easy to get swept up in the excitement of remodeling, but it’s never wise to price your home out of the neighborhood.
- How will you pay for the project? Having a clear strategy in mind to finance your renovations is essential. If you’re using a credit card or taking out a loan, don’t forget to account for interest.
When you have questions about home loan products, the experts at PrimeLending West Texas are always ready to assist you. Whether you’re searching for the right mortgage or interested in refinancing, we’re here to help. Contact us today to get started.