Often sellers look at renovating parts of their home prior to listing it on the market. However not all updates will produce the same return on investment, and some may be flat out money pits. Here are some things to consider before you embark on a resale renovation.
What are you updating?
Bathrooms and Kitchens are generally a great area to update. However, use caution when improving them for purpose of resale. Be careful that the quality of the update is in line with the rest of the home. When a home has only been partially renovated, it can sometimes put more emphasize on the remaining areas of the home, more-so than an original home. For instance, if you live in a mostly redone home, and try to renovate an outdated bathroom on the cheap, a potential buyer might assume you have cut corners in other areas of the home as well.
When to hold off.
A home in an original state can give a buyer the opportunity to create their own designs and put their personal stamp on the interior. An original home creates a larger window of buyers, including first time buyer’s looking to move right in or make updates over time, as well as those looking to renovate immediately. Older homes with a good sized lot can also be attractive to builders. In these cases, your pre-sale renovations may be no benefit to the sale price. At the end of the day, the larger the variety of buyer that the home appeals to, the greater the opportunity there is to generate competition for your home.
Enjoy your renovation.
In general, renovations for your own enjoyment have the best return. They can be enjoyed for years, and if in-line with the buyers wants, can have an added beneficial financial return. These updates have the highest ROI when the renovations are high quality, done by professionals, and have clean, neutral finishes.
At the end of the day…
The market can change at any time, and there are always risks when adding money to your home for a quick flip. When considering listing an original home, your best bet is to seek assistance with a professional realtor, prior to renovating. Depending on the market, it may be more beneficial to skip renovations, and invest in small updates or staging instead. Staging a home can include softening existing colours, brightening rooms with new lighting and attracting buyers who may have trouble visualizing furniture placement and arrangements without having to renovated a space. This can often bring your best return for your investment.