With experts predicting that home prices will keep climbing into 2022 and beyond, many homeowners are trying to decide whether to sell their houses as they are or invest in repairs?
Whether you are hesitant to put a bit of extra work into your home before selling it, or you’re ready to pour money into a renovation project, it’s smart to get the facts right before deciding. Below, we will explore four important factors you need to analyze before fixing up your house or selling it in its current state.
Consider The Current Condition of Your Home
Sure, you want to sell your home for more than you paid. But if your home is in quite a bad state and your agent or professional inspector thinks it will be tough finding people who will meet your asking price, it’s worth considering a renovation. Remember that only a professional can correctly tell you how bad a state your home is in.
What may look like a huge issue to you may turn out to be a minor problem that only requires a few cosmetic touch-ups. While a home that looks appealing to an untrained eye may have serious underlying issues that may hurt your asking price once they’re discovered.
Working with a local home inspection specialist will help you learn how good, or bad the condition of your house is compared to others in the area. If renovations are necessary, the expert will pinpoint what areas you need to fix and what updates you shouldn’t waste your money on.
The Condition of Your Local Real Estate Market
If your home is located in an area where homes sell fast and at fantastic prices, making improvements may not be worth it. In a hot real estate market, properties may sell in days, attracting multiple buyers and even bidding wars.
So, doing upgrades makes little sense if homes are already in high demand in your area. But remember that even in hot markets, properties that require major repairs will still fetch less compared to homes that are in great shape.
If you live in a place where sellers are constantly flooding the housing market, or there’s little buyers’ interest, you might want to consider performing repairs before listing your home for sale. A local real estate agent will help you determine the upgrades that will help your home stand out from the rest.
The Cost of the Renovations
Some home improvement projects are more likely to pay off than others. Remodel the wrong areas, and you’ll end up wasting money that you won’t recover. The trick is to know which repairs and upgrades are worth it and which ones to avoid.
Some of the best places to focus your effort on are your kitchen and bathroom, as they always tend to raise the value of a home. In fact, the average homeowner recoups over 81% of their costs on a minor kitchen remodel, adding about $18,000 to their home’s value as a result.
Other projects that can boost the value of your home include adding a fresh coat of paint on your doors, changing knobs and handles, plus upgrading faucets and lighting fixtures. If your budget is tight, work on the small things that will tie the entire house together, like painting all the walls or refinishing flooring, instead of splashing it all into one room.
The Time Needed to Complete the Project
How much time you have on your hands will dictate whether you can renovate before selling. If you’re in a hurry to move because of a new job or transfer, you may be forced to sell as-is. If you have a few days left before relocating, you can still paint rooms, renew old flooring, brighten your deck, and change knobs.
Larger projects like basement, kitchen, and bathroom remodels could involve getting a contractor over several weeks. If you have to do a renovation and you’re in a hurry to move, make sure you work with experienced contractors.
Experts can handle multiple projects simultaneously and make it an efficient and fast process. Committing to a remodel even when you’re in a hurry to sell can actually be a time-saver since a freshly updated home will spark more interest and sell faster.
Be a Smart Seller
When you decide to sell your home, it can be complicated to determine whether it’s wise to make changes before listing or it’s better selling as it is. Some renovations will never raise the value of your home enough for you to break even on the cost, while others have a high return on investment.
To make the right call, compare the current condition of your home to that of other houses on sale, study your local real estate market, decide which changes would boost the sale price, and work out how much time you have on your hands. Also, make sure you work closely with a licensed agent.
If you need assistance determining what improvements to make and what they’ll cost, we’re here to help.