Should You Renovate Your Home Before You Sell It?
Faith Led Interior Design Show | Episode 18
I often get asked the age-old question, "Will I get more money for my home if I renovate it before I sell it?"
If you are wondering whether it would be worth it or if you should renovate or add an addition to your home before you sell it, this episode is for you.
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Be Blessed Verse:
Jeremiah 29:11-13New International Version
11 For I know the plans I have for you,” declares the Lord, “plans to prosper you and not to harm you, plans to give you hope and a future. 12 Then you will call on me and come and pray to me, and I will listen to you. 13 You will seek me and find me when you seek me with all your heart.
Should You Renovate Your Home Before You Sell It?
So, what is the answer? Would you really get more money for the sale of your home if you renovated it first? We can start with, “Do you have the money to invest in doing that right now?” That could automatically answer the question.
The brokerage that I belong to, Better Homes and Gardens Real Estate, has a program that they partnered with a company called Curbio. Curbio has an interesting concept.
"Curbio is changing the way that realtors and their clients approach selling a home," said Curbio's Vice President of Marketing Rikki Rogers. "We've brought together the people, process, technology, and payment terms to eliminate the typical hassles of renovation and help the agent and home seller unlock the profit potential in every home. This partnership will be great for sellers."
"In today's competitive marketplace, Curbio delivers an excellent option for our agents to position our sellers in the marketplace strategically," said Mark Woodroof, Managing Partner of Better Homes and Gardens Real Estate Gary Greene. "We think Curbio's turnkey service with minimal seller disruption and deferred payment at closing makes renovation easier and more beneficial to seller clients."An easy & painless process. Be sure to check your area to see if it is offered, because locations are limited throughout the USA.
That being said, I think that each home would have to be researched further, and numbers would have to be carefully crunched, to see if this makes sense for your home.
I have found that most of the time, it does not make sense to renovate the home before selling it.
But there have been several times when it has paid off, so don’t totally count it out, the sellers actually made more than they spent to fix up their homes. The return was more than the cost of the renovations. That, of course, is the goal, and with Curbio, perhaps it would even make more sense for you to do it.
The main idea you want to have before selling your home is to update things that pay you back: While doing a quick kitchen or bath remodel might be tempting, if you just did it, you probably won't see a return on investment when you sell, according to Remodeling Magazine's 2021 Cost vs. Value Report.
This always is based on crunching the numbers. You would make more on the sale without the renovation, than with the renovation.
It was important to update for as little as possible, cost-wise, before the home sale. I have seen through the years that paint, flooring, and countertop changes can bring beautiful updates and oftentimes brings great changes in the look and feel and great financial rewards.
Start planning early if it is at all possible. Give yourself time to figure out your options. It takes time to receive quotes and plan the changes, Here is what I suggest…
4 Tips for Getting Your Home Ready to Go on the Market
Make Major Repairs and Sensible Upgrades
I have helped homeowners sell very dated homes. A simple paint job and countertop change made a major difference in the home sale price. In the end, it was much more profitable to do it. Other times, it just costs too much to make the cosmetic upgrades. We left the home as it is and let someone else do their upgrades.
There have also been some surprising times when the buyer loved the home as is. The best strategy is to work with a Designer or Realtor who can help you crunch the numbers and make the smart choice.
Focus Only on the Square Footage You Have
If you are considering selling your home, DO NOT tack on home additions. If you can convert an existing area to an additional bedroom with a closet, that could be profitable and desirable. More liveable space is always desirable, but the payout is not what one would expect if you add an addition. Funds would be much better spent modernizing the current space instead of adding space.
Modernize Outdated Finishes
There are some aspects of a home that will date it very, very quickly. Some of these items are lighting, hardware, honey oak cabinets, backsplashes from the ‘80s, and tile countertops, to name a few. Fortunately, there are simple ways to update these elements to make the home look far newer than it actually is. It truly is amazing what a major difference some of these changes can make in the home's sale.
4. Stage Your Home
Even in this fast-selling market, staging is a must, especially if you want to get lots of showings and even multiple offers. A home I recently sold was on the market for three days and received 30 offers far above the asking price. How was this possible?
I looked at what else was available in the area. Photos of the other homes for sale were not nearly as nice. Many were not staged. This matters tremendously. Staging can update old furnishings and make the home look bigger, brighter, lighter, and much more beautiful. It is important not to have a dated look that differs from the up-to-date homes of the area.
Even if you will not be selling your home for a while, it’s also a great idea to find out now what updates you will need to make before you sell your home, if any.
Simply get some consulting to let you know where you stand and what would be desirable to do if you are considering selling your home, now or in the future.
If you are unsure of what you need to do to prepare your home for a sale, I would love to help you. A quick consultation, in person or virtually, would be a great investment and give you plenty of time to update slowly instead of all at once and in a hurry.
Do you have a question about our home consultation or staging services? We can answer the question that this episode brought up. We'd be happy to help! Reach out to me here.
5. Pre-Foreclosure:
There is one very important specification that I want to include here, and that is Pre-Forclosure.
We all can get in jams, and things do not work out as we had hoped they would. No judgment here. I have things in my life that I would, in hindsight, have done very differently.
Pre-Forclosure is a very sensitive subject, but I want to bring it up here because we are discussing listing your home for sale.
I am part of a Women’s Real Estate Investors Network that has helped many people NOT go into foreclosure.
YOU DO NOT WANT TO GO INTO FORECLOSURE, if at all possible. Foreclosure is an atom bomb to your credit and will be on your record for up to 10 years. We create win-win situations to help you avoid foreclosure, which is not good.
It does not cost you anything to find out if we can help you.
The Process of How We Can Help You
You invite us to see your property. Virtual is okay.
We estimate the repairs.
We make you an offer on your property.
If you accept our offer, we will close on your property within a few weeks or sooner.
You do not have to do any repairs. You do not have to put money up front. We do our best to stop your foreclosure process.
This should be done as soon as possible. We can oftentimes stop the foreclosure process and buy us a bit more time to sell your property quickly.
We aim to get you out of a bad, inevitable situation, foreclosure, if nothing is done, and if possible, put some money back in your pocket to help you move forward. Many times this win-win situation is possible.
If you want more information about any of the subjects in this episode, please reach out to us here. We would be happy to be of service!
What’s Next For You?
In the next episode, I will be discussing a few of 2022’s hottest trends.
Now, Stop Dreaming, Start Designing your luxury home in your personality style and in your furniture style, and within your budget!
Blessings and See you next episode…
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