You’ve lived in your house for nearly a decade, and it’s time for a change. Your family might have gotten bigger with kids. Or you’re tired of the constant battle with your next-door neighbor.
After an afternoon spent sifting realtor ads, take a break to admire your humble abode. You have fond memories of it, like the time your son hit a baseball through the drywall. Maybe when the dishwasher broke and water got under the floorboard.
“Oh no, do I need to fix that?”
Maybe you should, maybe you shouldn’t.
Read on to figure out if you should renovate your house for sale.
You’ll need to test the water of the market. Real estate and property, in general, is a variable marketplace. There are so many inputs to calculate the just-right price, it’d be impossible for anyone to determine it.
But you can get a comparable gist.
Take a trip around the block. How often are houses selling, and for how much are they sold? What features did they include or exclude?
Use this information against your goal price. Be reasonable with how you value your house.
Houses that sold for near what you want, compare its assets. Check for pools, additional rooms, and how up-to-date and renovated the house is. Does your house have any of that or more?
As-Is and Gone
Your home could be of three hypothetical conditions: beat-up, used, and new.
A worn-down house needs a lot of work. Electrical, cosmetic, plumbing — the works. Sometimes, it’s not feasible to fix a house so far gone.
Sell this house for considerably less than the market price for a similarly sized house. This is a fixer-upper. People will buy it quickly to fix it and turn a profit.
A well-lived in house has signs of wear. But it only needs a little TLC to get it up to market.
Try for market price or a little bit above.
If your house is new, sell it as new. Ask for more than what you paid; a buyer will likely meet you right where it should be priced.
Renovate the House for Sale
You shouldn’t renovate something that’s considered a fixer-upper. It’s a waste.
But if your home is livable, a little touching up can go a long way.
As a homeowner, you should weigh the costs of each renovation. A new kitchen is a pricey upgrade, but it yields a substantial boost in price. A fresh coat of paint is cheap, but it has a lot of positive affirmation.
Do only what you can afford. Don’t take on debt for renovations, especially for a house you’re going to sell.
The best thing you can do is calculate what you can afford to spend on repairs of remodeling. Then analyze if it’s beneficial by comparing it to other houses.
If Becky from down the street redid her kitchen and sold it for $35,000 more, then try it. If she spent more than what she made back, a renovation isn’t worth it.
And . . . Sold!
The real estate market is variable. It depends on so many factors, it’s impossible to calculate precisely what a house costs. So you may be unsure if you should renovate your house for sale.
Determine if your house needs fixing or if it’s a fixer-upper. Spend only what you can afford to renovate. Don’t remodel if the cost outweighs the benefit.
Check out some other home-owning articles if you’re in the market to sell, buy, or rent.