Remodeling before selling: is it worth it?
“If I’m going to move out anyway, what’s the point of remodeling before selling?”
“Do I need to break the bank trying to get a high ROI on my home sale?”
When embarking on a new journey such as selling a home, people have all sorts of questions about remodeling. And it makes sense. Upgrading a home could help you command a higher selling price. But is it really worth the time, effort and cost?
We’re here to help you figure this out.
Does remodeling incur a lot of time?
If you’re interested in remodeling, you’re not alone: people across the United States spend more than $400 billion every year on repairing and remodeling their homes. That’s a staggering figure that outweighs the GDP of most countries around the world.
A vast majority of these projects are undertaken to enhance the curb appeal of a home before selling it.
According to Robert Ryczek, a top real estate agent in Florida, it’s an investment worth making. “I know that most of the time, you’re going to get back 65% to 70% of what you’re going to spend,” he said in an interview with HomeLight.
Despite this, many sellers feel hesitant to invest in home upgrades. One of the many reasons why that happens involves the myth that remodeling takes too much time. If you hire the right people to renovate your home, they can deliver the best results in a shorter span of time.
In fact, remodeling actually saves you time, since a house with better curb appeal sells faster too. Ideally, you should plan ahead and complete the home renovation by early summer or late spring, when the real estate market is typically booming.
Isn’t remodeling too expensive?
It can be, if you decide to make major changes to your home. By making simple home upgrades, however, you can enhance curb appeal without burning a hole in your pocket.
Deciding what to improve also matters. For example, there’s no doubt that updating your bathrooms and kitchen can boost the value of your property. This is a strategic move made by many sellers, who want to show buyers that they’ll have fewer home improvement projects on their to-do list if they purchase their property.
However, you can opt to improve energy efficiency instead. Upgrading water heaters and HVAC systems is far more expensive than installing solar panels or insulating the attic to conserve energy and save on costs in the long run. Twenty-first century buyers prefer energy-efficient homes, thanks to their impact on long-term savings and the environment.
Smart yet cost-effective decisions like landscaping to enhance your home’s exterior also can make a huge difference.
What about return on investment?
When remodeling your home, you should always remember that you’re doing this for your potential buyers, making the property presentable and marketable for them.
As such, the word of advice is not to engage in major overhauls; instead, do necessary home upgrades that will offer you a fairly high ROI. You can, for instance, install a new door on the entry, revitalize the exterior paint, plant some vibrant flowers in your garden, fix your patio furniture, and perhaps change your kitchen cabinets!
Do buyers prefer move-in ready homes?
An established selling agent in Chattanooga, Tennessee, David Shipley confirms with HomeLight that most people aren’t looking to take on improvement projects. “The bulk of the buying public loves homes that are move-in ready,” he shared. The National Association of Realtors (NAR) supports this fact in its 2020 Profile of Home Buyers and Sellers.
Their findings? Only 6% of buyers desire a DIY fixer-upper.
So…have we helped you make up your mind yet?