When you’re getting ready to sell your home, one of the biggest decisions you’ll have to make is whether or not to renovate it. This can be a tough decision because renovations can be expensive and time-consuming. However, there are some cases where it’s definitely worth doing them. In this blog post, we will discuss the pros and cons of renovating before selling, and we will give you some tips on which renovations typically yield the highest return value.
Advantages of Renovating
One of the biggest advantages of renovating your home before selling is that it can help you get a higher price for your home. If your home requires major repairs or updates, potential buyers may be turned off by this and offer you a lower price than what your home is actually worth. By making some key renovations, you can increase the value of your home and get closer to your asking price.
Disadvantages of Renovating
Of course, there are also some disadvantages to renovating before selling. The most obvious one is the cost. Home renovations can be expensive, and there’s no guarantee that you’ll make money back when you sell your home. Additionally, renovations can take a long time to complete. This means that if you’re in a hurry to sell your home, you may not be able to do so until the renovations are finished.
For a deeper dive into prepping your home for sale, check out TheMLSonline’s many articles on home repairs and resale value tips.
Best Home Renovations To Do Before Selling
So, what types of renovations are typically worth doing before selling? Here are a few examples:
1. Kitchen and Bathroom Updates
These are usually good investments because they tend to increase the value of your home while also making it more appealing to possible buyers.
A word of caution with kitchen and bathroom updates: Kitchens and bathrooms have great potential for yielding high returns on investment, but they can just as easily become a money pit. Just because you spend $50,000 making your bathroom beautiful or getting luxury flooring and custom cabinets in your kitchen does not mean someone will pay more for it. The key to renovations is to know your home’s current and potential value. Be realistic about what you can get from your home. Know your neighborhood and, more importantly, know who your buyers are.
For example, if you live in a quaint neighborhood filled with small ramblers and working-class people, don’t expect a millionaire to want your home. Likely, most buyers looking at homes in your area can’t afford a house with thousands of renovations sunk into it unless you live in an area widely considered “up and coming.” If you notice smaller homes being torn down and replaced with large, custom-built homes, you might have a better chance of selling for more.
The bottom line with major renovations is to keep it realistic. Hope for the best but expect the worst. It’s okay to freshen up and make your home feel comfortable and quality. Just try not to go overboard financially because, at the end of the day, a home can be an asset or a liability, depending on your personal finance decisions. Renovations can either be a worthwhile investment or a bad decision.
2. Cosmetic Updates
Sometimes, small things can make a big difference. If your home needs a fresh coat of paint or new carpeting, these relatively inexpensive updates can help it sell faster and for a higher price. You can do easy things like replace outdated light fixtures, clean your garage door, polish your vinyl or hardwood floors, and clean your house really well.
3. Structural Repairs
Any major problems with your home, such as a leaking roof, a cracked foundation, or electrical system failures, must be fixed before you put your home on the market. Not only will this make your home more appealing to many buyers, but it will also help you avoid legal trouble down the road.
If you are facing major repairs throughout the house, consult with real estate agents and lenders to get their opinion on what repairs you should make and to get their referrals for companies they work with often to, hopefully, cut down on repair costs.
If you cannot afford to pay for major structural repairs, you at least have to disclose them on the listing contract. You are obligated, by law, to disclose certain major issues to buyers. Your real estate agent will have you fill out a form that lists the issues you’re obligated to disclose, so don’t worry about figuring out what those are on your own.
Selling “As-Is” and Home Inspections
Your other option is to sell your house “as-is,” which basically means you’re selling your home exactly the way it is, flaws and all. Typically, a real estate investor is more likely to be interested in “as-is” homes than the average home buyers because they’re not looking to live in the home themselves. They might be looking to flip, wholesale, or tear it down to build something new.
The protection for buyers against hidden problems comes from an inspection clause. Often, buyers will include an inspection clause in their offer. So, a buyer makes an offer on your home, you accept the offer, and then the buyer will have a week to get someone in the home to do a full inspection. The buyer will look at the inspector’s report and decide if they want to stick with their offer or back out. If you sell “as-is,” there’s typically no inspection.
Ready To Hop Into the Housing Market?
If you’re considering renovating your home before selling, weigh the pros and cons carefully. In some cases, it’s definitely worth doing, but in others, it may not be necessary. Ultimately, it’s up to you to decide what’s best for your situation.
If you need guidance, lean on your local housing market experts at TheMLSonline.com. They can connect you with a local agent who can guide you in the right direction and help you get the most out of selling your home.