SHOULD YOU RENOVATE BEFORE SELLING YOUR HOME?

Many homeowners wonder whether it's worth it to renovate before selling their homes, and many factors can determine the answer. It can be complicated to estimate whether you'll recoup the cost of a renovation project and if you'll turn a higher profit. Consult and contact a trusted real estate agent from our team when considering the following factors to help you decide whether it's worth renovating before selling your home.

COMPARATIVE MARKET ANALYSIS

Realtors use this tool to estimate your home's value. They do this by looking at homes with similar comps in your neighborhood that have sold in recent weeks. An experienced realtor will then create a comparative market analysis (CMA) report, so you can determine what price point will be best for your home.

A CMA report is also a good way to determine the current market in your area. If it's a seller's market, you likely won't need to make any renovations at all to sell quickly. On the other hand, if it's a sleepy market, it may be wise to do a little work to catch a buyer's attention.

ASK A LISTING AGENT FOR ADVICE

A listing agent is an expert at selling homes successfully and at the highest price point. They will be able to inform you about the current market in your neighborhood, and they can advise you on what projects can give you the most bang for your buck. They'll look at your home's condition, age, and unique features to determine what renovations may be worth it and which ones should be left alone.

HOW TO CALCULATE THE ROI FOR YOUR HOME RENOVATION PROJECT

Your goal with any renovation should be a high return on investment (ROI). The last thing you want is to sink a lot of time and money into a project, only to realize that you won't gain enough value or profit for it to have been worth it at all. This cost vs. value guide from Remodeling Magazine makes it easy to plug in your cost and instantly see whether your project will yield a return worth it in your region.

It's also essential to think about how soon you plan on listing your home. If you're able to renovate and enjoy your upgrade until it's time to sell, it may be worth it, even if your ROI won't be significant. Your ROI will also vary based on the market in your region. If it's a seller's market, your renovation may add value, but you may not get any profit. Alternately, a sleepy buyer's market may require you to make some changes to attract buyers to make offers on your home.

RENOVATIONS TO CONSIDER

Every home is unique; unless it's brand new, your home could likely use a little TLC. The challenge is determining which renovations will aid in the sale of your home. According to a 2020 survey of over 2,000 people that Coldwell Banker conducted, 80% said they'd rather purchase a move-in-ready home than one that needs renovations. Let's discuss which renovations are generally worth it to complete before selling your home.

MAKE REPAIRS

A home in disrepair communicates that the owner doesn't care about its upkeep, and a potential buyer may wonder whether more significant problems lay under the surface. Your home also may not pass an inspection if it has issues that need to be fixed. Consider having a pre-listing home inspection, so you can correct any problems before you list your home. This will also help smooth out any issues that a buyer might see when they schedule a walk-through.

UPDATE THE KITCHEN

Many homeowners ask questions like, "Should I remodel my kitchen before selling?" The kitchen can make or break a sale, and an outdated kitchen may be an instant turn-off for potential buyers. Generally, kitchen renovations are a good investment that provides high ROIs, but they can become expensive very quickly. Don't spend unnecessarily on high-end appliances. Instead, consider buying mid-range, high-efficiency appliances to update your space. It also may be wise to paint old cabinets or replace outdated countertops with materials like granite or quartz.

BATHROOM RENOVATIONS

Bathrooms should be updated and clean, and if yours needs repair, it's probably worth it to update your space. You don't have to completely renovate the entire room. Instead, focus on the details. Repair cracked tiles and grout, and replace hardware and old, outdated sliding glass doors. Update the space with features like a double vanity or a walk-in shower.

IMPROVE CURB APPEAL

In many cases, people judge a book by its cover, so it's crucial that your home's exterior is fresh, inviting, and clean. MLS listings display the home's exterior photo first, and most buyers look online before they even begin to look at homes in person, so your home's exterior will be their first impression. Some easy updates include painting the front door, adding exterior lights, and removing any cracks or weeds from your walkway.

Landscaping is also a great investment. Pressure wash the outside of your home to ensure that the siding is clean and bright before you take any photos.

DIY RENOVATIONS

If you can take on a few renovations yourself, you'll save on labor costs, which increases your overall profit. Choose small projects that you're confident that you've got the money, time, and energy to complete. This can include tasks like painting the interior of your home in neutral colors to give it a fresh, updated look. You can also add new light fixtures to each space. Focus on providing an ambient, task-specific, and accent light to each room to make it feel cozy, interesting, and bright. New window treatments are also a fairly easy DIY job that will instantly update your space.

QUESTIONS TO CONSIDER

Before starting a renovation project, it's important to ask yourself a few questions. This will help you determine what to fix and what not to fix when selling a house and whether you'll recoup the money you plan to invest. Not every home renovation is worth it, and some careful considerations will help ensure you get the most bang for your buck in the project you choose. Here are some questions to ask yourself.

WHAT'S THE MARKET LIKE WHERE YOU LIVE?

The amount of work you need to do depends on whether you live in a seller's or buyer's market. Check out local real estate listings to see what comparable homes have sold for in your

area. It's also good to see how long each house was on the market before it sold. This will help you see how hard you'll need to work to get a buyer's attention.

HOW MUCH WILL IT COST?

Before you begin, make sure you have a budget set. Get multiple quotes from contractors and know how much you're prepared to spend on your renovation project. This will help you stay on track and recoup the most money.

HOW WILL YOU PAY FOR IT?

As with any major purchase, knowing how you'll pay for your renovation project is important. If you need to get a loan, it's important to factor the interest rate into your overall budget, so you know exactly how much you'll be spending out of pocket.

WHEN DO YOU PLAN ON LISTING YOUR HOME?

Have a timeline in mind for listing your home, and stick to it. That way, you'll know whether you've got enough time to do major renovations. Remember that contractors work on tight schedules, and ordering materials takes time. If you're selling your home in the near future, you may not have enough time to get bigger projects completed in time.

WHAT'S THE COST AND AVAILABILITY OF MATERIALS?

Supply chain issues are a major problem for contractors right now, and they have little control over how quickly they'll receive the supplies needed for a renovation project. Consult with your contractor and ensure you know exactly how much your materials will cost and when they expect them to arrive. This can affect your timeline and push back your listing date. A higher cost of materials can also lower your ROI, leaving you with less value and profit in the end.

TRUST THE DILSAVER GROUP TO HELP SELL YOUR HOME

Not all renovations are created equal, and it's important to choose renovations that increase your home's value. Do your homework and consult with a trusted real estate agent to determine which ones are worth your time and money.

If you're ready to sell your home but you're unsure about which projects to tackle before listing, contact The Dilsaver Group. They’re a group of expert realtors dedicated to giving you an elevated real estate experience, and they’ll help you sell your home at the highest price point.