Should sell your home as-is or renovate it first? If this is your first experience with real estate sales, take a look at the questions to ask before you invest in a major pre-listing remodel.
How Quickly Do You Need to Sell Your Home?
Do you need to relocate for a job in another state? Did you already buy a new home? Whether you have a strict moving deadline, are paying two mortgages, or have another reason to sell your home as soon as possible, a time crunch may eliminate the possibility of major renovations.
While a few minor home projects (such as a new coat of paint on the living room walls or a bathroom mirror replacement) are easy to accomplish, a full kitchen reconstruction or a bonus room addition takes time. If you don't have months to wait, skip the renovations and list your home with an agent right now.
Will You Recoup Your Investment?
Renovations should add value to your home. You shouldn't lose money or break even on a major home change. Before you decide to renovate, evaluate the cost recoup data for your local real estate market. According to Remodeling magazine, in 2020, manufactured stone veneers, garage door replacement, and minor mid-range kitchen remodels scored the highest recouped costs compared to the initial investments.
If you're not sure whether the renovation will increase your potential asking price or if you'll even recoup your costs, talk to professionals in the field. Real estate agents and contractors may be able to help you to better understand which projects make the most sense for your home and your financial needs.
Can You Afford the Renovations?
Along with the amount of money this type of investment can earn you for a higher sales price, you also need to consider if you can actually afford the initial costs. Even though a major home renovation may help you to sell your property quickly and for a significantly higher price, you shouldn't go into debt just to finance the changes.
Get a few different estimates before you decide on a pre-sales renovation project. If you can find a quality contractor who can work within your budget, the renovation is an investment to seriously consider. But if you have to take out loans, if the project will cost more than you have in your savings account, or if you won't have the money to buy a new home, don't renovate your soon-to-be old home. Contact a real estate agent for more information.