Should You Renovate Before Listing Your Home for Sale?
Should you renovate your home before it goes on the market? Here is how to know if this selling strategy is right for you.
Industry research showcases that renovating your home before selling can improve the way your home fares on the market. Sellers often experience preferable conditions after performing pre-sale renovations, such as increased buyer appeal and even increased property values. But, should you renovate?
Like most home selling strategies, renovations should only be taken on if it’s the right decision for you as a seller.
Renovation projects are substantial investments and should only be undertaken when it’s the best option for your specific situation. Here are some insights to help you decide on “should you renovate?” or not.
Should You Renovate? 3 Ways to Know When the Answer is Yes
These three situations all present circumstances where it would be a good idea to consider a renovation project to improve your home before it is listed on the market.
#1. You Have Pending Items in Need of Repairs
If your home is not ready for the market, you’ll likely need to renovate the property before listing it for sale. Homes with pre-existing issues and conditions are less likely to attract buyers or be valued at a preferable price point.
For example, if the kitchen has broken appliances or an area of the floor has water damage from a previous incident, sellers should take action and fix those issues before listing the home.
#2. You’re Interested in Capitalizing on Current Market Trends
Even if there are no obvious signs of disrepair or damage, an outdated home may also merit renovations.
There are plenty of home improvement projects that can update your home to meet the current trends that are in demand with buyers in your area. Researching local market reports and strategizing with your agent can help sellers identify the kinds of amenities and features that are attracting the most demand.
It may be an island in the kitchen or a remote-controlled garage door. If you’re interested in improving your home’s marketability and potentially increasing its value, this can be a green light to help you decide to renovate your listing.
#3. Your Local Market is Preferencing Buyers and Sellers Need to Stand Out
When the market is especially competitive for sellers, buyers maintain a more critical eye when shopping for properties.
If your local market is behaving as a buyer’s market, it may be a good time to consider renovating your home before listing it on the market. Newly renovated homes may appeal to buyers more than a home that received no attention before being listed for sale.
If you’re unsure what home improvements can add the most value to your property, reference a reliable online calculator that pulls location data to identify which projects best suit your needs.
Red Flags: 2 Circumstances When You Might Avoid Renovating
Despite the potential benefits of pre-sale renovating, there are certain circumstances when sellers may want to avoid renovation projects. Here are two common red flags against embarking on renovations.
#1. You Have a Strict Selling Timeline
If you are pressed against a strict selling timeline, the answer to “should you renovate” would likely be no.
Renovation projects can take a long time to finalize, and the timeline for your repairs will impact your selling time frame. It’s not uncommon for renovation projects to experience unexpected delays and drag on longer than anticipated. In these cases, sellers would need to wait for the renovations to be completed to move forward with their sale.
Sellers that do not have the time allotted to confidently begin a renovation knowing it will be completed in time should not renovate.
#2. You Don’t Have the Investment for Upfront Costs
Since you’ll be using your own funds to pay for the renovations, you’ll need to have the bandwidth available in your home selling budget.
Sellers who are already tight on their selling finances should perhaps not choose renovations.
It’s important to keep in mind that, in some cases, the final cost of the project is higher than what was initially outlined. If you do decide to renovate, make sure that you are clear about the home improvement expenses in relation to the rest of your budget.
Sellers won’t want to overstep their renovation funds and consequently not have enough to cover their closing costs or other fees.
To avoid this type of issue, clearly discuss with your renovator whether the initial budget for the renovation was a price guarantee or an estimate. Being clear about the finances is essential for successfully financing your renovations.
Keep this information in mind as you ask yourself should you renovate your listing or not. If you’re interested in finding the best agent in your area to assist you in your home selling strategy, click here.
