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Renovate And Remodel Or Sell It "As
Is?"
Three or four years ago, the real estate
market was so hot that no matter what some sellers did—either putting
money into home renovations or simply listing it “as is”—they sold their
home without any problem at all. Very often a seller was able to sell
their home within the first week and sold it without a home inspection.
Unfortunately, those days are pretty much
gone.
Today, sellers are fretting more than ever
over listing their homes and the big question is this: Should you
make renovations to your home before you put it on the market or should
you initially list it at a lower price and not spend the money for
upgrades? Although there’s no simple answer (even most experts
disagree), each option has its benefits. Yet when all is said and done,
a compromise is probably your best bet.
Yes, Upgrade Your Home Before
Putting It On The Market. If your home is
definitely in need of upgrades, spending the money makes sense. If you
are considering any major renovations, you’ll want to have your real
estate agent provide you with information about house in your area in
terms of what the “norm” is (number of bathrooms, types of kitchens,
average age of homes, etc). If your home is inferior to other homes on
the market in your neighborhood, take the plunge and do any needed
upgrades. However, be careful that you don’t go overboard. If your
renovations are over the top your home may end up being too pricey for
your neighborhood.
No, Don’t Upgrade Your Home, But
Instead List It At A Lower Price. In many
cases, you might not be able to recoup your remodeling costs when it
comes time to sell. Also, if you’re worried about your house sitting on
the market longer than you want it to, you may be better off if you
forgo any major renovations and instead concentrate on listing your home
at a competitive price. This doesn’t mean that you need to under price
your home, however. You just need to price it according to what the
current market will bear—and according to the current value of your
house at its current condition. Once again, you’re real estate agent can
help you in this area.
The smart thing for you to do may be a
combination of remodeling and lowering your list price. Making
smaller upgrades to your house—to bring it in line with similar houses
in your area—is usually a good idea if there’s a wide discrepancy
between your home and other homes. Also, you should always do minor
cosmetic upgrades such as painting, carpet cleaning, and landscaping
before putting your house on the market. In terms of your list price,
make sure you list your home at a fair and competitive price—whether or
not you make any renovations. ∆ |
