As a smart seller, you’ll want your home in tip-top shape – but you don’t want to eat into your profits by overspending on home improvements. And, if you’re looking to move fast, it might make sense to make only minor repairs so you can get your home listed faster. On the other hand, if you’re planning to stay in the home, or plan on moving in a few years, it may make sense to put more money into renovations and updates.
Here are four tips for deciding what works best for your situation:
1. Assess your motivation for selling
If you’re mostly motivated by financial returns and would like to enjoy the upgrades and renovations, it makes sense to spend more – you’ll potentially recoup the cost when you sell. On the other hand, if you’re moving for lifestyle or job reasons, then it might not make sense to invest much into your home – after all, once it’s sold, that’s likely the end of your time there.
2. Determine your expected holding period
This is especially important if you’re planning to upgrade more than just cosmetic items – like adding a new kitchen or bathroom, replacing major appliances or making other structural changes. For example, removing walls will increase the amount of living space in your home, which can be attractive to buyers. However, changing the footprint of your home might also require a long time waiting for permits and could end up costing your more.
3. Understand how much cash you have before choosing renovations
Even if you’re planning to stay in your home for several years or more, it’s important to fully understand how much cash you have on hand – including any cash reserves you might have outside of your home – before making renovations. Even if you can get a renovation loan or use some of your down payment cash, it might not be the best financial decision if you’re missing out on other investing opportunities that could give you an even bigger return.
4. Consider what potential buyers will want to see when they tour your home
Even if you’re selling in a seller’s market, the key to getting the best offer is attracting as many buyers as possible. That means you’ll want to make your home appealing and ready for viewing whenever a potential buyer comes along – which means keeping it clean and staging it attractively (with or without professional help). And, of course, buyers often appreciate small cosmetic updates like new flooring or paint.
When it comes to more major renovations like kitchen and bathroom remodels, you’ll want to market your home to potential buyers who are interested in that upgrade. If you’re not sure which kind of buyer might be attracted to your home, talk with a real estate agent about strategies for attracting the right type of buyer.
For more information on this topic and other real estate tips, watch our video below:
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