It is widely accepted that home renovations appeal to homebuyers when you put your home up for sale. For example, people looking for a new home typically express more interest in homes that have renovated kitchens and bathrooms. Most home upgrades do give your home a competitive edge because buyers prefer not to invest in the home themselves. However, certain remodeling projects may require you to invest too much time, energy, planning, and resources to pay off. Hence, some home upgrades may appear to be beneficial for increasing the value of your home, but in reality, some expensive renovations may not boost your sale at all.
Your goal is to get the greatest return on investment you possibly can. Therefore, you need to consider your renovation plan carefully. Of course, we are here to give you guidance and help you invest your money prudently.
What kind of homes tend to sell well?
Some experts contend that your home will sell well regardless of it being a fixer-upper or a completely renovated home. Of course, your success also relies on the local market dynamics.
For instance, different neighborhoods in Seattle attract different kinds of buyers. Depending on the location and popularity of the area, you might quickly sell your home without investing a single dime. However, if your ambitions are greater than this, some renovating is necessary to boost your chances of selling your home at a reasonable price.
Furthermore, traditional buyers prefer a move-in-ready home. You will want to appeal to these homebuyers, but blindly investing in your home and splurging a lot of money can be counterproductive.
Luxury renovations may slow down your home-selling process
Namely, luxury or comprehensive, and thus, expensive renovations may even ruin your chances of selling your home. A blown-up price after a remodel might render your home unsellable if it contains renovations homebuyers assess as unnecessary. And as with anything, there is a whole science to deciding if expensive renovations might boost your home value.
Is the cost of investing in expensive upgrades worth it?
This is the question you need to ask yourself before you hire contractors to remodel your home. Therefore, you need to weigh your options and assess if the renovation in question will do good for the value of your home in your particular real estate market.
A single room upgrade strategy
Some real estate experts are more in favor of small upgrades rather than comprehensive or whole-house renovation projects. So, according to this strategy, you invest less money because you renovate only one room, such as a bathroom or kitchen. You leave all the rest in its original state.
The logic behind this is that you will boost the value of the property without spending too much money. The resale value will naturally be smaller, but your renovation expenses will be small as well.
This will allow you to focus all of your funds on your new home as well as your relocation expenses. If you are moving to a different city or even state, you will need to save all the money, time, and energy you possibly can. In fact, you may need all the help you can get to manage both the remodel and your long-distance relocation. Be sure to hire professional movers who can help you pack all your possessions with ease and, in that way, get at least one of your worries off your back.
Leaving everything as is
Expensive renovations could put off buyers in a slow market. Also, sometimes it happens that you do not have enough time or money (or both) on your hands. Hence, you should consider leaving everything as it is and selling your home as a fixer-upper.
As we mentioned, most homebuyers like to purchase a completely renovated home. If you do not have money to renovate all the rooms that are in need of renovation, then investing in partial but expensive remodels may not be a good idea.
Renovations can boost your sale in some cases
Yet, if you live in a city or neighborhood where there is a lot of demand, then you might be missing out on a lucrative home sale. Furthermore, homebuyers might opt for a rent-to-buy agreement, which allows them to pay off your home over time. In this case, if you see that you will be able to sell your home easily in your local real estate market, then you should definitely consider investing in a few expensive renovations in order to raise your home’s market value.
This is a good strategy when the properties are selling fast. Yet, this may not be such a good strategy if you live in an unpopular neighborhood.
Minor renovations may outplay expensive renovations
When planning the renovation, you might think that the best approach is to add state-of-the-art home features or breathtakingly tasteful decor. Yet, you should never be too sure that what appeals to you also appeals to everyone who shows interest in your home.
Basically, sometimes more is less because it is better to renovate your home to appeal to the largest number of people rather than a select few who like their home to look expensive or brand new.
In this sense, a simple interior and exterior repainting of your home might do wonders for the impression your home leaves. The same goes for landscaping. Boosting the curb appeal of your home might be just enough to win over potential buyers. Hence, you might make the mistake of spending a lot of money on renovations, when in fact, expensive renovations may not boost your sale in the first place.