Home Seller's Dilemma: To Renovate or Not to Renovate Your Home Before Selling
Selling your home comes with a lot of uncertainty and one of them might be whether you should renovate it before listing your home.
A good cleaning and some fixing-up will do the trick but will a renovation be a good investment?
The answer to this question depends on a lot of factors and different scenarios. The most important thing is that you do as much research as possible to determine whether it would be worth it.
Here are a few reasons why you should renovate before selling but also pitfalls that can be avoided:
Option #1 - Renovating before selling
A visually-appealing home is always a winner when potential buyers look at it. People will rather choose a home with modern touches and new fixtures than a home that looks a bit shabby. A renovated home sells the idea that it is new and that it is clean.
Having said that, it is important that you make sure your investment will pay itself back. Your renovation budget is directly affected by current market prices.
For example, if your asking price after the evaluation is at the maximum market price, then spending R50,000 to get R100,000 in return is not feasible at all. On the other hand, if your house is in an area that is in demand, then it would make sense to renovate. People will tend to pay more to live in a nice neighborhood.
If you go this route, start with the kitchen and the bathroom. These are the areas of the home that attract the most attention.
Option #2 - Not renovating before selling
Many sellers believe that it is illogical to spend a lot of money because of the possibility that you will be making more when you sell.
But this can be an advantage to the seller.
Sellers often choose not to renovate because they don't have the cash to do so. Whether you decide to renovate your house or not, there will always be that one buyer that will scrutinize every aspect of your home just to try and knock off a few rands from the asking price.
This gamble could just pay off. Homes that are in very bad states are too expensive to renovate and it can be very time-consuming. It would mean that the entire house would have to be renovated and not just a few rooms.
If your home falls in this category and you are in a rush to sell, then it could mean that you have to sell at a lower market price.
It might not be appealing to most buyers but it is a great opportunity for people who do house-flipping.
Closing thoughts: where from here?
Before you make your decision, you should take the first step and get a home evaluation done. Ensure that the home is also inspected before you consider renovating.
It is vital that you get someone who has enough experience in the real estate industry to evaluate and inspect your home properly. Over-evaluation can happen and this can delay a sale even further. You as the homeowner will not be able to evaluate and inspect the home yourself because you are used to the good and bad of the house.
A contracted evaluator will look at your house with a fresh set of eyes. They can pick up on certain damages in your home before it becomes a serious problem.
Once you have received feedback on your home and you went through the report, you will be able to look at the pros and cons of renovating your home before selling.