Even though the real estate market is currently considered a seller’s market, as a seller, you’ll still have to put some effort into preparing your home for sale.
These preparations typically mean making at least a few upgrades. In some cases, a full renovation might be a necessary investment to increase the sale value of the home.
In order to get started on the renovation process, it helps to have a good understanding of the kinds of costs you’ll be looking at.
Should I renovate or just make some improvements to my home?
Although it seems counterintuitive, a full renovation doesn’t always greatly increase a home’s sale value.
A renovation might include fully updating spaces like the kitchen and bathroom. These kinds of renovations could seem like a great idea to the seller, but they are a risky choice– potential buyers might be turned off by your design choices and be less inclined to make an offer on the home.
There are a few upgrades that typically show a good ROI (return on investment), however. For instance, instead of splurging on all-new cabinets and flooring for your kitchen, you could update the doors and windows of your home to be more energy efficient.
Currently, homebuyers are motivated to purchase homes that are energy efficient because of rising energy costs.
If your home has original or outdated windows, or a poorly insulated front door or garage, you can increase your home’s sale value and curb appeal by updating them!
Ultimately, you should focus on improvements that are functional.
A homebuyer can decorate the home as they please when they’ve purchased it, but it might be a lot more of a hassle for them to replace the windows, roof, or gutters.
Plus, even a homebuyer that’s made an offer on your home might rescind their offer if their home inspection turns up any major problems.
Be sure to address any electrical or plumbing issues before you put your home on the market to save everyone some time and headaches!
What are some additional costs for home renovations?
The amount of money you’ll need to dedicate toward home renovations or improvements depends on the current state of your home and the extent of the renovations that it requires.
Some fixes are relatively inexpensive. For example, a study conducted by Zillow shows that something as simple as changing the color of your front door– or replacing the door with something more modern– can increase the sale value of your home by thousands of dollars.
Other renovations can be a more costly and time-intensive endeavor. Homebuyers are currently motivated to find homes with finished basements, and if your basement is looking a little rough or outdated, the process of finishing it might require more money than you were originally planning on spending.
Learning that you’ll need to spend money in order to profit from the sale of your home can be frustrating and stressful. But with a little research, you can figure out which improvements can get you the best return on your investment and therefore the best sale price!
How can I determine what I need to sell my home?
A qualified, experienced real estate agent can let you know exactly what you’ll need in order to attract buyers in your area. Agents know what sells and what doesn’t, and are the best resource you can find to make a great profit when selling your home.
To get connected with a great real estate agent today, drop us a line at Edge Realty. We’d love to lend our insight to your renovation project!