You’re preparing to move out and sell your home. But when you look around, the place just doesn’t look appealing and sellable. While it might have undergone minor repairs here and there, as a whole, the house needs some serious updating.
A common dilemma among many homeowners: To renovate or not?
According to the National Association of Realtors, Americans stay in their homes for about 13 years before they move out. Throughout this period, homeowners seldom prioritize home remodeling or renovations because of its costs. The average per owner spending on home improvements is at $3,000, while major projects can go as high as $75,000. As a result, more than half of US homes require renovations and repairs at the time of listing.
Whether to spend more time and money on home remodeling prior to listing is a tough decision. For instance, while renovations typically increase the value of a property, some improvements may actually turn off potential buyers.
To help you decide whether home renovation is worthwhile, you need to understand some of its advantages and disadvantages.
What are its benefits?
Remove potential issues that repel buyers
When a buyer walks into a property, they will look for reasons not to buy it – that’s a natural impulse. Home renovation can help remove potential issues that can turn off prospective buyer. Common issues include outdated home décor, damaged walls, windows and doors, untended lawn or garden, etc. By removing these objections, you can increase the chances of closing a deal and get the desired asking price.
Increase house value
Notice how “flipping” a house increases the value of an otherwise rundown property. Investors are willing to pour in huge amounts of money in renovating these decrepit homes because doing so allows them to sell the property quickly and gain substantial profit. The same is true when you renovate your home before selling. Home renovations and improvements can add to the value of your property. Every home makeover should be seen as an investment with an eye for higher return.
According to an experienced contractor at AFS General Contracting, there affordable home renovation projects that can significantly add value to your home. If your home has not undergone any major improvement and you have extra budget, renovating it can be a wise venture.
Improve your home’s competitiveness
Know that when you are selling a house, it’s a competition. It is not only your home that a potential buyer will check. There are hundreds of options available. Renovation ensures that yours is impressive. You can also include the recent work as a positive aspect in your home’s marketing description.
Attract interest of buyers
If your home has been listed for quite some time or if you have several unsuccessful bids, renovation can reignite the sale. New add-ons can attract or renew interest of potential buyers. Prospects are always on the lookout for something new. If you have new offerings or updates, you’ll likely get their attention – and hopefully this time, you can close the deal.
What are its drawbacks?
Home renovations can take weeks or even months. If you plan to move out in a matter of days, major home improvements might not be an option. However, you can embark in minor, cosmetic fixes that can take a few days. But for these projects, don’t expect that the home value will significantly increase.
The average cost to remodel a house ranges from $18,000 to $75,000 depending on where it is located. To many homeowners, this can be quite a hefty sum. If you don’t have enough upfront cash, renovation should be out of the picture. The best you can do is to make your home presentable and attractive to buyer through general cleaning or DIY home improvement projects. Do this well ahead of time. But if this is not possible, you can just focus on areas that desperately need attention.
No money-back guarantee
There is no guarantee that you’ll recoup every penny spent on home renovation when sale day comes. There are a lot of factors that can affect the property pricing. Unless you would still be using the improvements for over five years, avoid overspending on renovation projects. You might end up solely getting your expenses without real gain – only wasting your effort and time.
To avoid this, you should discuss any makeover plans to your realtor. He can guide you as to how much you should put into it.
It is every homeowner’s instinct to make their home look attractive to anyone who visits, especially when it is up for sale. Some might think that spending on renovations translates to higher gain, but this is not always the case. As mentioned above, real estate is a tricky venture. Before you finally decide on a home makeover project, be sure to weight its benefits and drawbacks.