You recently decided to sell your home, a home that has been properly lived in for the last few years.
A good cleaning, as well as some repairs and renovations, will drastically help to improve the state of the house. But, should you invest in renovating your home before you sell?
This is a question that seems to be asked quite often lately. The answer really depends on a few factors or scenarios.
In this article, we will explore the various reasons as to why you should renovate your home before selling it. We will also take a look at some of the pitfalls surrounding renovations that are being done before the sale of the home.
Renovating Your Home Before Selling It
A great-looking, clean home definitely puts less pressure on the real estate agent who is trying to sell the home. Plus, you will have slightly more leverage when negotiating a deal with the interested home buyer.
Another reason behind this leverage is that a visually-appealing home will always attract more buyers than a home that is not well maintained.
That’s kind of common sense, no?
However, your renovation budget is directly affected by current market prices: say, if your current asking price after the evaluation is at the maximum market price, then spending R50,000 in order to gain an extra R100,000 will not be feasible at all. Not too many buyers will be looking to pay more than R100,000 over the market value of a house.
On the other hand, if you know that your house is in an area that is currently in demand, then it makes perfect sense to renovate. You could, for example, invest R50,000 in order to place your home on the market for R100,000 more than what you would have initially.
If you do go this route, make sure to first start with projects such as kitchen upgrade and bathroom renovations. These are areas of attention that can assist you in getting a higher price for your home.
You will also need to be very careful when doing this too, as it is possible to spend a lot of money repairing areas of the house which can easily go unnoticed by a potential buyer.
Choosing Not to Renovate Your Home Before Selling It
The notion of not investing in your current home in order to gain a higher sale price may seem illogical to most people. But it can work out to the seller’s advantage in many ways.
One of the biggest reasons most sellers don’t renovate is because they do not have the cash upfront to pay for any necessary renovations.
Whether you renovate or not, it is possible for a buyer to still criticize your home in the hopes of knocking off a few thousand Rands from that asking price. Not renovating here could be a gamble that pays off. This is usually in situations where the home is in an extremely bad state. Trying to fix these homes before selling them can become very costly and time-consuming.
Unfortunately, if your home falls into this category and you are in a hurry to sell, then an option could be to sell your home at a low(er) market price. It may not be appealing to most buyers out there, but it will be perfect for people who do house flipping because of the low(er) price.
Which Option Will Work Best for You?
Firstly, before you decide on anything, you should always make sure that your home is properly evaluated as well as inspected. Luckily, more and more homeowners are opting to have a home inspection report done ahead of selling their property.
Over-evaluating a property is common these days and can lead to delays in potential sales. Choosing the right people (contractors and electricians) is absolutely crucial.
As a homeowner, you tend to fully adjust to the good and bad aspects of your house, which in turn makes you biased towards items that need to be repaired. A good contractor will pick up on all the faults within your home and will make you aware of them. If they don’t pick up on certain damages within your home, it may become a problem later on.
Once you have feedback in regards to the evaluation on your home and repairs that need to be done, you will then be able to properly weigh out the pros and cons of renovating your home before selling it.