Selling a home
When a homeowner begins to think about putting their home on the market, they begin to wonder what improvements can be made to build the business cost. In the event that you are considering on remodeling before offering, then you have to take a hard look at the numbers and see if it is worth the time, energy and money. Sure, we see the circa-1990 kitchens periodically when on the house hunt, but it’s not to say that the house won’t sell if it has a 90’s kitchen. Some buyers may be more hesitant to buy without an updated space, while others may look at it as an opportunity to put their own personal stamp on the home.
Some renovations will return a positive ROI while others may be money pits. There are many variables to consider when deciding on whether or not to renovate before selling. Among the top items to consider is the current market, comparables in the neighborhood, the home’s value with and without renovations and the timeline for selling. In a competitive market, renovations will most likely not be necessary before selling the property. Whereas, in a slower market (where the property needs to measure up to the competition) a renovation may be necessary to even the playing field.
Minor vs. Major Renovations Before Selling
The best thing to do is start out with some minor cosmetic upgrades instead of investing a lot of time and money into a full renovation. By thinking small it can still get buyers in the door. Here are a few top minor renovations to consider to add more value to your home before selling:
Doors – The front door is typically the first and last thing that potential buyers see when touring a home. So it’s no surprise that replacing an existing front door can net you a full return on investment. A 2015 Cost vs. Value Report by Remodeling Magazine showed a 101.8% return for a new steel door with the replacement cost of $1,230. Additionally, this same report also showed a good return for replacing garage doors. With an average cost of $1,600, the sellers saw an 88% return at resale.
Roofing – A roof inspection is part of nearly every real estate transaction. So it never hurts to have a roof inspection completed before listing so there are no surprises. If the home is in need of a new roof, the average return is about 72%. Often a roof may just need minor repairs that will be lighter on the pocket book and also provide peace of mind for the new buyer.
Siding – This renovation is basic home maintenance and can greatly affect curb appeal if the siding is outdated or in need of repair/replacement. The Remodeling Magazine Cost vs. Value Report showed an 80% return on investment when upgrading siding.
Kitchen – With many kitchens serving as the hub of the home, buyers are searching for a modern kitchen that is ready to host family and friends. Dated kitchens can be a turnoff and a kitchen remodel can be seen as a pricey (and daunting) task. A few minor changes in a kitchen can go a long ways without a complete gut job. Consider replacing outdated appliances, painting or refacing old cabinetry or redesigning ledges and backsplashes.
Flooring – Peel and stick tile is not a preferred flooring option of most buyers. Hardwood floors are usually the top requested flooring type, but realize that they do come with a higher price tag. If a home has existing hardwood floors, a refinishing project may be able to upgrade the space. On average, wood floors have shown 6 percent increase in the sales price of a home.
Paint – This is one of the least expensive upgrades, yet can give new life to any room in the house. It’s a project that can be easily tackled by the homeowner or cost a nominal fee to hire a professional. On average, an entire interior painting project will cost between $2,000 to $3,000 with a professional painter plus the cost of paint and materials.
Having to adjust a home’s price because of necessary improvements and renovations is never fun for a seller. Some home renovations will not add value to the home for resale but may be worth it to facilitate a faster sale. Consult your realtor for advice.
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