Key Considerations, Costs and an Alternate Option.
When you are getting ready to sell a home, you’re likely wondering about its marketability or appeal from potential buyers’ eyes. You might be wondering about its appearance and features, both inside and outside.
While some homeowners choose to update their home with a minor to sometimes major remodel project before selling, others leave the work to the future buyer, not knowing if the updates and enhancements will be aligned with the future buyers wants or vision for the home.
Frankly, what seem to be simple décor choices like flooring, paint colors, countertops and plumbing fixtures can end up being a turn off for potential buyers.
So, the question looms, but the truth is that deciding between updating or not totally depends on your unique situation.
If you are in this situation and need guidance on making the decision to remodel before selling, consider the following advice.
Why Do Homeowners Remodel Before Selling?
There are several reasons why some homeowners may choose to remodel before selling a home. Some of these reasons include:
- Looking to maximize the homes market value and return on investment
- Trying to attract more potential buyers
- Trying to generate higher offers from potential buyers
- Making the home stand out against other properties on the market
These are all potential advantages of remodeling before selling. If these reasons are in line with your goals, it might make sense to remodel before selling your house.
However, there are also some drawbacks and mistakes if you decide to remodel before selling such as:
- Focusing on the wrong upgrade or update that won’t deliver a great return on investment
- Choosing the wrong contractor who does poor work
- Coordinating multiple contractors to perform the work
- Cleaning all the dust and mess associated with a remodel
- Pricing your home out of your current neighborhood
- Making the wrong style selections which may not appeal to a generalized buyer base
- Investing all the time, effort and money which may or may not pay off
Planning for Remodeling/Renovation Project
When you decide to update or renovate, plenty of planning takes place before the project begins. You can expect to plan for the following aspects of home remodeling:
- Analyzing the current condition of your home and what needs to be upgraded. It’s best to consult a professional on this before you get started, such as a real estate agent. If it’s a seller’s market, you might be surprised at what upgrades you can skip.
- Next, you’ll either need to find a general contractor who will coordinate all the sub-contractors for the different projects. Or, you can act as general contractor yourself by finding and contracting with all the sub-contractors directly. This can be a lengthy process as you should talk to at least three of them. Three is a good balance because it gives you a range of prices/quotes and experience levels.
- If you act as general contractor, you can find home improvement contractors on websites like Angie’s List. When you decide on a contractor, make sure they are insured. This is extremely important in the event if something goes wrong with your project or there is an accident. It’s also a great idea to get references from other customers.
- You’ll then need to have an understanding of the overall project timeline and consider that in conjunction with how quickly you want to sell. For example, a minor update to the kitchen with updated flooring and appliances can take just a few weeks. On the other hand, an entire kitchen remodel including updated flooring, cabinets, countertops, appliances, sink and lighting and plumbing fixtures can take three to five months.
And most importantly, if you’re choosing to renovate your home before selling, a key step is to determine the cost and if it makes sense for your budget.
The Cost of Remodeling Your Home
How much does it cost to renovate your home? This depends on many factors, especially the type of updates as part of the renovation.
These are some general guidelines on how much you can expect to spend on upgrades from Remodeling Magazine’s Cost vs Value 2020 Report.
- Midrange bathroom remodel – $21,377
- Midrange major kitchen remodel – $68,490
- Wood deck addition – $14,360
- Vinyl siding replacement – $14,359
- Vinyl window replacement – $17,641
Keep in mind that these projects present a good ROI when it comes to resale value. However, it’s still a cost to keep in mind if you decide to renovate.
Lower Cost Renovations to Consider
The good news is that not all home renovations have to be high dollar. There are some upgrades that can make an impact for less money than a bathroom or kitchen remodel. These renovations include:
- Painting, which is the lowest cost home improvement for the highest profit
- Landscaping, costing up to $3,000
- Flooring, costing $10 to $30 per square foot
- Updating lighting fixtures, which can cost as little as $100
Which Renovations Matter to Buyers?
Each person has their own unique taste. However, some renovations matter a little more to buyers than others. This is where you need to be careful about choosing your renovation project, as the wrong choice can set you back in a number of ways.
One consideration is to think about the potential buyers for your home.
For example, 40% of millennial homebuyers aren’t willing to put up with renovations and repairs. This means they’re looking for a turnkey home. The buyers expect most if not everything to be updated when they move in.
The bad news is that this leaves all of the renovation design and planning all on you.
Your Selling Situation
Now that you understand more about the consideration, budget and time consumption for home remodeling, you’ll need to know how this works with your selling situation. You might find yourself in one of the following scenarios:
- You are relocating for a new job and only have time to make small upgrades
- The home is not yours. It belonged to a family member and you need to sell it
- You have some time to make renovations, but not a lot of money to do it
- You have the money to make renovations, but don’t want the responsibility
- You are happy to make your own renovations to help sell your home
Moving is one of the most stressful events of life. Renovating only adds to this stress, whether it’s financial or going through the experience itself.
An Alternate Option: Should You Sell Your Home As-Is?
There’s good news when it comes to renovating your home before you sell: you don’t have to! Selling your home as-is can take a tremendous amount of stress off your plate and keep more money in your wallet.
Selling your home as-is to Homestead Road can help in the following ways:
- Selling as-is saves you time and money
- Takes the responsibility away of remodeling/renovating
- Takes away the expense of remodeling
- Bypasses the need to interview contractors and get quotes for projects
- Allows you to enjoy a hassle-free, stress-free process and more joy of moving to your next home
It’s easy to do this with Homestead Road. There’s no long “to-do” list, no updates, no cleaning, no showings, no commissions because we buy your home “as-is”. We’ll make you a fair and transparent offer and if you accept, we can close on your timeline in as little as two weeks so you can get on with your life.
Other advantages of selling your home as-is to Homestead Road include:
- We evaluate your property and give you an offer, explaining how we arrived at that number
- We handle all the details such as the purchase agreement, liens and city inspections if required
- Close within 2 weeks, although the time can be adjusted to your needs
- No need to get involved with a real estate agent
Skip the Remodel: Sell Your Home As-is to Homestead Road
Avoid the hassles and stress of updating and remodeling by selling your home to Homestead Road. Call us at 612-808-6767 to get started.