Many people feel like that can’t put their home on the market until they put in a new kitchen, or update their bathrooms – perhaps even to re-carpet all the bedrooms. All of which is going to cost them a bundle, but they are counting on making back that investment upon resale.
What to consider
There are always first time home buyers out there. Between first time buyers and those looking for investment properties, there is a good chance you will be able to sell your home without doing much of anything to it – if your real estate market is healthy. Get your home appraised before sinking money into it. You may be surprised and find out its value has increased regardless of renovations, and therefore you are already in a position to profit. Sometimes doing renovations isn’t your best bet. This may have you selling your home sooner than you imagined.
Your neighbourhood will play a large role in selling your home. Research what homes in your area are selling for, and then get your place appraised. One problem with doing renovations before you have all the information is that they can lead to your home being overvalued for the neighbourhood. Essentially this means that your home is great, worth a lot of money, but the other homes in the area don’t meet the same standard and therefore your neighbours are bringing down your home’s value. This can lead you to sinking a lot of money into your home during renovations, and then not getting it back when you try to sell it.
Discussing your options with your realtor is the first step to take when selling your home. They can help you decide if investing in renovations will be worth it, or they can direct you as to what is worth changing and what isn’t.
Posted by Gurpreet Ghatehora on