To Renovate or Not To Renovate Before You Sell
When thinking about selling, homeowners often feel they need to get their house ready with some home renovation to make it more appealing to buyers. However, with so many buyers competing for available homes right now, renovations may not be as vital as they would be in a more normal market.
Here are two things to keep in mind if you’re thinking of selling this season.
1. There aren’t enough homes for sale right now. Be smart when it comes to home renovation before selling
A normal market has a 6-month supply of houses for sale. Today’s housing inventory sits far below that benchmark. According to the National Association of Realtors (NAR), there’s only a 1.9-month supply of homes available today. As a result, buyer competition is high and homes are only on the market for about 21 days. During this time, many receive multiple offers from buyers. In Seattle and the Eastside, this time on the market can be as low as a few days.
Spending costly time and money on renovations before you sell might just mean you’ll miss your key window of opportunity
In a competitive market that’s moving so quickly, it makes sense to sell your house when buyers are scooping homes up as fast as they’re being listed. Spending costly time and money on renovations before you sell might just mean you’ll miss your key window of opportunity. While certain repairs on your house may be important, your best move right now is to work with a real estate advisor to determine which improvements are truly necessary. And to identify the ones that are not likely to be deal-breakers for buyers.
Today, many buyers are more willing to take on home improvement projects themselves in order to get the home they’re after. Home Advisor explains:
In this market, it may be wise to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. As a seller, your dollars and time might be better spent working on small cosmetic updates. Refreshing some paint and power washing the exterior could be advised. Don’t over-invest in your home with upgrades that the buyers may change anyway. Instead, work with a real estate professional to determine the key projects that will maximize your listing, without overdoing it.
2. Focus on getting a good return on your investment.
When planning any bigger projects to tackle, you and your real estate agent will want to discuss the potential return on your investment and if those projects are worth the cost. Some homes do need a kitchen or bathroom renovation, roof repairs, or other major work, but definitely not all of them. You might be surprised by how well your house could fair in today’s sellers’ market. Hanley Wood states:
Ideally, homeowners getting ready to move should try to avoid over-investing in big renovations if they won’t make that money back when selling their house. According to the 2020 State of Home Spending report from Home Advisor:
Before you renovate, contact a local real estate professional to see if it’s the best course of action. You may find out that putting your house on the market as-is will help you sell quickly. And it may result in the best return on your investment. Every home is different, but a conversation with your agent is critical to make sure you make the right moves when selling this season.
We’re in a strong sellers’ market. That means you have the leverage to sell your house on your terms. Let’s connect today to determine if renovating is really the best way to spend your time and money before you sell.