If you’re thinking about renovating the house before listing, then you’re on a good track to make a big buck. There’s plenty of debate regarding home renovations and whether or not they’re necessary before house listing. And while there are compelling arguments on both sides, we’d have to agree with the notion that home renovations are indeed necessary.
Why? Well, that’s why we’re here to talk about that.
Your Home Needs An Update
Everyone wants to buy a good-looking house. But sellers won’t get that if you’ve never updated your home. Certain home features require regular maintenance. In some cases, these features will need wholesale renovations. We can determine what these features are based on what buyers want.
Nearly 87% of buyers want their ideal property to have a laundry room. This room ranks first in the top most wanted features list conducted by the National Association of Home Builders. So if your property has no space for a laundry room, you best get to work creating one.
To maximize the sale value of your property, you have to dive deeper into the top real estate trends. Once you identify these trends, the only way to “acquire” them is by updating the house.
Buyers Won’t Do It
One of the biggest real estate myths is that buyers renovate properties once they buy them. This myth stems from the numerous home makeover shows we see on TV. But the simple truth is that home buyers can’t visualize the space if you don’t let them. If you show them an unrenovated house, they will see it for what it is – old and in desperate need of updating.
They won’t suddenly start visualizing the new flooring, new wall color, new kitchen, etc. So a huge reason why you should always renovate before listing your house is that buyers won’t do it themselves. And if they don’t plan on doing it, they won’t bother paying for an old house that needs a makeover. While buyers will likely save big on an unrenovated property they will still have to pay afterward, making it a very cost-ineffective transaction.
It Increases Value
Let’s say that finding a buyer isn’t a problem for you even if your house needs renovations. You might think the smartest thing to do is go ahead and list your property. But have you considered how much you’re going to get for an old house that needs a makeover?
The value of older properties with outdated features comes nowhere close to a fully renovated one. Not only do home renovations make your house more desirable to buyers, but it also increases the value. According to CNBC, minor kitchen remodeling pays back an 81% return on investment.
Kitchen renovations are the safest investment you can make that increases the value of your house. But it’s not the only one. Other renovations that are both safe and increase the value of your house are a new garage door, a manufactured stone veneer, fiber-cementing siding, and replacing old with new windows.
It Will Sell Faster
We’re coming back to the point that home buyers are more interested in renovated properties. The reasons for that are many, and one reason is that buyers won’t do it afterward. So a big motivation to renovate the house before listing it is that it will sell much faster.
While a big reason why properties sell faster is down to the agent in charge of the sale, give the agent a fully renovated house and they’ll have no problem selling it. For some sellers, time is of the essence as most house sales are connected to an upcoming home purchase.
Namely, the sooner the seller sells the house, the sooner they’ll have the money to buy a new one.
So, Should You Renovate Before Listing?
While it does make sense in some cases to sell your house as it is, it makes no financial sense not to do it. Making small repairs and renovations pays off in the long run. Costly repairs generally bring sellers the least value, so focusing on smaller changes and renovations is the way to go.
Considering that appeal is the most important factor for buyers, making your house more beautiful is only natural. The bottom line is that if you want to see the best return on investment, consider renovating your house before listing.