Should I Renovate Before Selling?
As we prep for this years home selling season I keep getting asked: What home improvements should be done before selling? This is always a fantastic question to dive a little bit deeper into!
The first thing you want to ask yourself is what is the motivation: Absolutely it is fantastic if you sell your home for $100k more than its current value….but if you spent $150k in renovations and add on all of the time and energy you put in, was this worth it? At the end of the day you actually lost money for the perception of a higher sales price. Many times I have found people are so focused on getting the highest sales price, that they miss key factors that will actually put the most cash in their pocket.
The first point I always want to make about renovations is: most renovations you would do in preparing to sell a home will not get 100% return on investment. Now I am not talking about little maintenance issues that may need to be addressed, putting a fresh coat of neutral color paint, or sprucing up the landscaping for the best curb appeal. These are all good practices to get the highest and best price for your home and help it show best. I am talking true renovation territory.
One renovation you may absolutely want to consider is a minor bathroom renovation. If your bathroom is outdated and ready for a refresh with a relatively small investment you can make a huge impact. Done correctly you should see a 102-104% return on this type of renovation. Just a few simple things like swapping out the tile counters for a nice “left over” piece of granite that can be found at a low price, swapping out a vanity adding some more space and an updated look, a newer low flow toilet for energy efficiency and a tub or shower inlay if they are starting to show signs of wear. It is important to not go crazy, it is so easy to just keep adding little features forgetting how much they all add up.
A minor kitchen remodel can also be a huge impact, again I am not talking down to the studs remodel, but resurface the cabinets, replacing the counter tops, a fresh coat of paint. Recessed lighting and under cabinet lighting can do so much for visual appeal. If the budget allows for it new appliances can be a great upgrade even better if the kitchen setup allows for a built in oven and counter installed cook top.
With family sizes growing and the appeal of roommates in the San Diego market consider the impact from converting mixed use rooms back to bedrooms. A home office is great, but most buyers would rather see a bedroom they could use as an office if the opportunity presented itself. For what many times is just adding a closet and maybe replacing the door having that extra bedroom ready to go makes a bigger impact than an office that a buyer would have to convert themselves.
The last thing I would recommend, and one of the biggest opportunities I believe most have is doing a good landscape makeover. No one will fall in love with your home if they never even make it in the door, curb appeal is huge! A new or freshly painted entry door, new mulch, freshly manicured lawn and trimmed bushes or trees, sometimes it is as simple as a few little things too spruce it up, other times you may have to spend a few weekends and a lot of sweat to make it great. This is one renovation that many times can be done at a low cost with your own labor and make a huge difference. If paint is pealing or siding is damaged this is the perfect time to replace, repair or redo. That half wall of pealing paint may be something you have zoned out, but if it is the first thing a prospective buyer sees driving up that is not the impression you want to make. A few tasteful hanging plants on a deck or row of brightly colored flowers and bam! Looks like a totally different house.
Not to say that a home that is in significant disrepair or a home that you have inherited or received at a significant discount can’t make some extra profit with some major renovations. But for many, a major renovation may just not be worth it. If you are not making a profit and considering many buyers would rather customize renovations themselves. Sometimes, the best thing you can do is leave it a blank canvas for the next homeowner.
The best advice I can give is to call me. Every home, every person and every deal is different. Let’s work together to make the best game plan for your individual needs that will best serve your situation!
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