When Renovating Before Listing Isn’t the Right Choice
Many people think any kind of renovation or remodeling project will boost the listing price when they sell their home. Unfortunately, this isn’t true. There are a number of situations where undertaking an upgrade before listing can hurt more than it helps. Let’s take a look.
1. You have low to no budget – If you don’t have the budget for quality materials and would have to upgrade on the cheap, you might do better to cross that project off your list. Buyers can easily see where you skimped on quality so if you have to compromise with lower quality materials to meet your budget, you’ll turn off more buyers than you attract.
2. You can’t afford professional installation – Some projects are pretty simple and easy to DIY. However, it’s important to know when you can DIY and when you need a pro. You can buy the best materials or top-quality items but if they’re installed incorrectly because you didn’t know what you were doing, that upgrade can downgrade buyers’ interest in your listing.
3. You have a long list of projects or ideas – It’s easy to go overboard when you have a long list of ideas for your home improvement projects. Go too far overboard and you could end up spending far more on renovations than it’s possible to recoup from an increase in home value when you sell–ultimately costing you more than it makes up for in the sale.
4. Your upgrades are too minor to make a difference – If your budget will only allow for a few small upgrades that won’t pay off in a higher asking price when you list, it might be better to forego them. You want to make sure any remodeling or renovating you do adds value to the home. If a project is too minor to give the bottom line a boost, save that money to use elsewhere.
5. You aren’t sure what buyers in your market are looking for – Some upgrades are universal, such as a fresh coat of a neutral paint color where needed. Other upgrades are more dependent on personal taste or regional market preferences. If you aren’t sure what buyers are hot for in your market, it’s best to consult with your listing agent first before undertaking any improvement projects.
Every seller wants to get the most out of their listing as possible. It’s reasonable to want to make a few improvements to make your home more attractive to buyers. However, sometimes renovating or remodeling isn’t the right choice such as the 5 situations listed above. And sometimes, it’s just better to give the buyer a chance to make the home over to suit their own personal style. Before you undertake any improvement project, talk to your listing agent to make sure your budget will be well spent.